The purchase price is only part of the number. When a British buyer purchases a €500,000 apartment on the Costa del Sol, the total outlay before you get the keys is closer to €542,000 to €545,000 on a resale, or €563,000 to €565,000 on a new build. On top of that are annual ownership costs most buyers seriously underestimate.
This guide gives you the actual figures, not ranges dressed up as certainties. It covers a resale apartment at €500,000 and runs through every cost you will pay: at purchase, in year one, and every year after that.
The One-Time Buying Costs
ITP: Transfer Tax (Resale Properties)
In Andalusia, the transfer tax (Impuesto sobre Transmisiones Patrimoniales) on resale properties is 7% of the purchase price. On a €500,000 apartment, that is €35,000, paid within 30 days of completion. There are no reliefs available for non-residents. This is your single largest buying cost, and there is no way around it.
If you are buying a new build from a developer, ITP does not apply. Instead, you pay IVA (VAT) at 10% plus AJD (Stamp Duty) at 1.2%. See the new build comparison at the end of this guide.
Notary Fees
The notary oversees the public deed (escritura) and certifies the transaction. Fees in Spain are set by a regulated tariff and scale with the declared purchase price. On a €500,000 property, budget €1,000 to €1,500 for notary fees. These are paid on completion day.
Land Registry Fees
After completion, the deed must be registered at the Registro de la Propiedad. Fees are similarly regulated and typically run €500 to €900 on a €500,000 transaction.
Lawyer Fees
Your independent Spanish lawyer will review title, check for debts and planning irregularities, draft or review contracts, liaise with the notary, and manage the tax filings at completion. Standard fees run around 1% of the purchase price, which on €500,000 is €5,000. Some lawyers work on fixed fees; on a transaction of this size, €4,000 to €6,000 is a reasonable expectation.
The use of a good independent lawyer is not optional. Many British buyers have suffered serious losses on the Costa del Sol by relying on agents or developers to recommend legal representation, or by skipping it entirely. Your lawyer must be registered with the Colegio de Abogados and must be independent of the selling agent and developer.
Gestor Fees
A gestor is a Spanish administrative agent who handles the tax filings on your behalf after completion. Some lawyers include this in their fee; others outsource it separately. If charged separately, expect €400 to €800.
One-Time Cost Summary: Resale at €500,000
| Cost | Amount |
|---|---|
| Purchase price | €500,000 |
| ITP (7%) | €35,000 |
| Notary | €1,200 |
| Land Registry | €700 |
| Lawyer (1%) | €5,000 |
| Gestor | €600 |
| Total at completion | €542,500 |
| Buying costs above purchase price | €42,500 (8.5%) |
Budget 10% above purchase price to be safe. The 8.5% figure is accurate for a straightforward cash purchase; if you take a mortgage, additional costs apply (see below).
If you are focused on Estepona specifically, our guide Is Estepona expensive? covers the full cost of living picture, from groceries to restaurants to utility bills.
Currency: The Cost British Buyers Miss
If you are converting sterling to euros, the exchange rate and method matter more than most buyers realise. On a €500,000 purchase, a 0.5% rate difference translates to €2,500. Banks typically add a spread of 2 to 3% over the interbank rate. A specialist currency broker typically charges 0.5 to 1%.
On a €500,000 purchase, using a currency broker rather than your UK high-street bank can save £1,500 to £3,000 depending on timing and rates.
If you are concerned about the rate moving between offer and completion (typically 6 to 12 weeks), a forward contract lets you lock in the current rate. Many buyers on larger purchases do this as a matter of course.
At current GBP/EUR rates in the 1.17 to 1.19 range, a €500,000 purchase costs approximately £420,000 to £427,000 before buying costs. Total sterling outlay including buying costs: approximately £456,000 to £465,000.
If You Are Taking a Spanish Mortgage
Spanish banks lend to non-residents at a maximum of 60 to 70% LTV, based on the lower of the purchase price and the bank’s own valuation. On a €500,000 apartment, the maximum mortgage is typically €300,000 to €350,000. You would need to fund the remaining €150,000 to €200,000 (plus all buying costs) from your own resources.
Additional mortgage-related costs:
| Cost | Amount |
|---|---|
| Property valuation (tasación) | €400 to €700 |
| Mortgage arrangement fee | 0 to 1% of loan (0 to €3,000) |
| Mortgage broker fee (if used) | 0.5 to 1% of loan |
Since 2019, the borrower does not pay AJD (Stamp Duty) on the mortgage itself. The bank pays that. Notary and registry costs for the mortgage deed are also borne by the bank under Spanish law.
At current rates (Euribor around 2.5% plus a margin of 0.9 to 1.3%), a €300,000 variable rate mortgage over 20 years costs approximately €1,650 to €1,700 per month. Fixed-rate mortgages are available at around 3 to 3.5% for 20-year terms.
Annual Ownership Costs
This is where British buyers are most consistently surprised. The property does not cost nothing to sit there.
IBI (Council Tax)
IBI (Impuesto sobre Bienes Inmuebles) is the Spanish equivalent of council tax. It is charged annually by the municipality based on the cadastral value of the property, which is typically well below market value. On a €500,000 apartment in Marbella or Estepona, IBI typically runs €800 to €2,000 per year. Marbella charges slightly higher rates than neighbouring municipalities. Bills are issued in the autumn and can be paid by direct debit.
Community Fees (Gastos de Comunidad)
All apartments in Spain belong to a community of owners (comunidad de propietarios) which manages shared areas, pools, gardens, lifts, and building maintenance. Community fees vary enormously based on what is included.
For a €500,000 apartment in a mid-range urbanisation with pool and gardens:
– Basic: €150 to €250 per month (€1,800 to €3,000/year)
For a premium urbanisation with 24-hour security, concierge, gym, padel courts, and extensive grounds:
– Premium: €400 to €600 per month (€4,800 to €7,200/year)
Always request the community’s last two sets of accounts and check the reserve fund before purchasing. A community with a depleted reserve fund is a financial liability.
Non-Resident Income Tax (Form 210)
Even if you do not rent your property, Spain requires non-resident owners to file an annual tax return and pay a deemed rental income tax. This is not widely understood by British buyers until their Spanish accountant hands them the first bill.
The calculation works as follows:
- Take the cadastral value (valor catastral) of the property
- Multiply by 1.1% (or 2% if the cadastral value has not been revised since 1994)
- That figure is the deemed rental income
- Tax is 24% of that figure for non-EU residents (the UK is outside the EU post-Brexit)
On a €500,000 apartment with a cadastral value of around €180,000, the calculation would be: €180,000 x 1.1% = €1,980. Tax at 24% = €475 per year. This varies significantly by property and municipality. Your Spanish accountant or gestor will handle the annual Form 210 filing; their fee for this is typically €150 to €300.
Buildings and Contents Insurance
Community buildings insurance covers the structure, but you are responsible for the interior. A good contents and liability policy for a €500,000 apartment costs €300 to €600 per year.
Utilities
Even if the property is empty for months at a time, electricity and water have standing charges. Budget €80 to €150 per month in standing charges alone, rising significantly with actual use (air conditioning in summer is substantial). If the property sits empty year-round, the annual utility cost is typically €1,000 to €1,800.
Property Management (If Non-Resident)
If you are not living in Spain and need someone to manage the property, check on it, arrange maintenance, and be available for emergencies, a key-holding and management service typically costs €1,500 to €3,000 per year depending on scope.
Annual Costs Summary: €500k Apartment (Not Renting)
| Cost | Low | High |
|---|---|---|
| IBI | €900 | €1,800 |
| Community fees | €2,400 | €6,000 |
| Non-resident income tax (Form 210) | €400 | €700 |
| Accountant/gestor | €200 | €350 |
| Insurance | €350 | €600 |
| Utilities (standing charges) | €1,000 | €1,800 |
| Property management | €0 | €3,000 |
| Total annual | €5,250 | €14,250 |
A realistic midpoint for a well-run apartment in a premium urbanisation, with no mortgage and not renting, is around €8,000 to €10,000 per year.
New Build vs Resale: Tax Difference
For a €500,000 new-build apartment purchased directly from a developer:
| Cost | New Build | Resale |
|---|---|---|
| Purchase tax | IVA 10% = €50,000 | ITP 7% = €35,000 |
| Stamp Duty (AJD) | 1.2% = €6,000 | Not applicable |
| Notary + Registry | €1,900 | €1,900 |
| Legal fees | €5,000 | €5,000 |
| Gestor | €600 | €600 |
| Total buying costs | €63,500 (12.7%) | €42,500 (8.5%) |
New builds cost significantly more in tax, though some buyers offset this against developer incentives, later completion dates, or the benefit of a brand-new property under warranty.
What the Total Picture Looks Like
For a British buyer purchasing a €500,000 resale apartment on the Costa del Sol with no mortgage, using a currency broker, and holding it as a second home without renting:
| Purchase price | €500,000 |
| One-time buying costs | €42,500 |
| Total day-one outlay | €542,500 |
| Annual ownership costs | €8,000 to €10,000 |
| 5-year total cost of ownership | €582,500 to €592,500 |
None of this makes the Costa del Sol a bad investment. The fundamentals of supply, demand, and international appeal remain strong. But the numbers matter, and buyers who go in with a realistic picture of total cost make better decisions than those who budget for the purchase price alone.
Frequently Asked Questions
What are the total buying costs on a €500,000 apartment in Andalucía?
On a resale at €500,000, your total buying costs on top of the purchase price are approximately €42,500: ITP transfer tax at 7% (€35,000), notary fees (around €1,200), land registry fees (around €700), lawyer at 1% (€5,000), and a gestor fee of around €600. That brings the total outlay to roughly €542,500 before you factor in currency conversion costs. Budget at least 10% above the purchase price to cover all costs comfortably.
What is ITP and how much is it in Andalucía in 2026?
ITP (Impuesto sobre Transmisiones Patrimoniales) is the Spanish property transfer tax, equivalent to stamp duty in the UK. In Andalucía it is set at 7% of the purchase price for resale properties. It must be paid within 30 days of completion. There are no reliefs or reductions for non-residents, and it applies regardless of whether you are buying with cash or a mortgage. It is your single largest buying cost and is non-negotiable.
Do I pay ITP on a new build property in Spain?
No. New build properties are not subject to ITP. Instead you pay IVA (VAT) at 10% and AJD (stamp duty equivalent) at 1.2% in Andalucía. On a €400,000 new build, that is €40,000 in IVA plus €4,800 in AJD, a total tax bill of €44,800 compared to around €32,000 in ITP on an equivalent resale. New builds cost more in tax, which is an important factor when comparing the two options.
What ongoing costs should I budget for after buying a property in Spain?
Annual ownership costs typically include: IBI (the Spanish equivalent of council tax, usually €500 to €2,000 per year depending on the property and municipality); community fees if you own within a development (commonly €100 to €400 per month for apartments on the Costa del Sol); buildings insurance; and the Form 210 non-resident income tax return, which applies even if you never rent the property out (typically €200 to €500 per year for a holiday home). If you do rent out, tourist tax (tasa turística) and quarterly Form 210 filings apply on top.
Can I save money by declaring a lower purchase price at the notary?
No. Spanish notaries report all transactions, and the Agencia Tributaria applies official minimum reference values (valores de referencia) based on market data. If the price you declare is below the reference value for the property, the tax authority will issue a supplementary demand at the higher figure, plus interest and potential penalties. Declaring a lower price to reduce your ITP bill is both illegal and ineffective.
Do I pay Spanish capital gains tax when I sell?
Yes. Non-resident sellers pay 19% capital gains tax on any profit, calculated as the sale price minus the original purchase price and allowable costs (including the buying taxes and legal fees you paid at acquisition, plus documented improvement costs). The buyer is legally required to withhold 3% of the purchase price and pay it directly to the Agencia Tributaria on your behalf as a deposit against this liability. After completion, your gestor files Form 210 to calculate the actual gain; any excess over the 3% is refunded, or any shortfall is collected.
