Property Purchase Costs: Andalusia and Canary Islands 2026

In short: The biggest part of the additional purchase costs is tax. For a resale property you pay 7 % property transfer tax (ITP) in Andalusia, and 6.5 % in the Canary Islands according to the Canary Islands tax authority. For a new build, VAT and stamp duty (AJD) apply instead of ITP, plus notary, land registry and usually a lawyer or Gestoría in every case.

With the calculator you can instantly see which taxes apply to your purchase price in Andalusia and in the Canary Islands:

Which tax applies to a resale property?

If you buy an existing property from a private seller, you pay the property transfer tax ITP (Impuesto sobre Transmisiones Patrimoniales). It is set by the regions, which is why the rates differ.

Andalusia

The rates come from the tax administration of the Junta de Andalucía and have applied since 28 April 2021:

• 7 % general rate, regardless of the purchase price
• 6 % for your main residence up to a purchase price of 150,000 €
• 3.5 % for your main residence up to 150,000 € if you are under 35 or buy in a municipality affected by depopulation (also for victims of domestic violence or terrorism)
• 3.5 % for your main residence up to 250,000 € with a disability of 33 % or more, or for large families

The reduced rates only apply if the property really becomes your main residence, and they are tied to further conditions. For a holiday home or a property above the price limit, the general rate applies.

Canary Islands

The following rates come from the information published so far on Canary Islands tax (according to the Canary Islands tax authority, check before buying): The general ITP rate is 6.5 %. For your main residence there is a reduced rate of 5 %, as well as further reductions for certain groups of buyers, such as young buyers and large families, each with price and income limits. Have the rate that applies to you confirmed by the Agencia Tributaria Canaria, the notary or a Gestoría before you make a reservation.

Watch out for the reference value

The tax is not always calculated on the purchase price. Since 2022, the cadastral reference value (valor de referencia) has applied as a minimum. If your purchase price is below it, you pay ITP on the higher reference value. You can look it up online at the land registry office (Sede Electrónica del Catastro) before buying.

What applies to a new build?

If you buy directly from the developer, no ITP is due. Instead you pay VAT on the purchase price and also the stamp duty AJD (Actos Jurídicos Documentados) on the notarial deed.

The Andalusian AJD rate of 1.2 % is officially documented and has applied since 28 April 2021. The IVA rate is set by the national government; have it stated in the draft purchase contract. In the Canary Islands there is no IVA, but the island tax IGIC instead. How it works is explained under IGIC in the Canary Islands. AJD is also due when you take out a mortgage; for mortgages this tax is paid by the bank.

Which costs come on top of the tax?

These items apply in both regions. Notary and land registry fees are regulated by the state through official fee scales and rise with the purchase price; everything else is negotiable.

• Notary: notarises the purchase contract (Escritura pública).
• Land registry (Registro de la Propiedad): registers you as the owner.
• Gestoría: an administrative agency that handles the tax return and registration. With a mortgage, the bank usually appoints one.
• Lawyer: not mandatory, but sensible. The notary does not check whether extensions are permitted or whether there are debts with the owners’ association.
• Valuation (tasación): required by the bank for a mortgage.
• Land registry extract (Nota simple): costs little and belongs at the start of every check.

Get a cost estimate (provisión de fondos) in advance for the notary, land registry, Gestoría and lawyer. Reputable offices tell you the amount before you hire them.

Who pays what?

The buyer pays the ITP or the VAT with AJD, the land registry and their own advisers. In practice the buyer usually also covers the notary costs; this can be agreed in the contract. The seller pays the municipal capital gains tax (Plusvalía municipal) and usually the estate agent’s commission.

Worked example: purchase price 200,000 €

The example only shows the taxes, because only they can be calculated reliably. Notary, land registry and advisers come on top. It assumes the general rate, so no reduction, and a purchase price above the reference value.

The figures for the Canary Islands are based on the rates according to the Canary Islands tax authority and should be checked before buying. Important for your planning: Spanish banks usually finance only part of the purchase price and none of the additional costs. So you need the taxes and fees as your own funds, on top of the down payment.

How much do properties cost per m²?

The prices come from Idealista’s sales reports for September 2026. They are asking prices from listings, not notarised purchase prices.

The provincial figures show how big the gap between the coast and the interior is: Málaga 4,317 €/m², Cádiz 2,539, Seville 2,080, Granada 1,890, Huelva 1,817, Almería 1,673, Córdoba 1,420 and Jaén 879 €/m². In the Canary Islands, the province of Santa Cruz de Tenerife is at 3,514 €/m² and Las Palmas at 3,113 €/m². Whether renting is the better choice for you can be compared with the rents under Finding a flat in Spain.

How does the purchase work?

The usual route has seven stages. Almost all additional costs fall due on the day of signing at the notary or shortly afterwards.

1. NIE and bank account

   Without an NIE you can neither buy nor pay taxes. You need a Spanish bank account for the purchase price, taxes and later direct debits.

2. Check the property

   Land registry extract, cadastral data, outstanding property tax, debts with the owners’ association, permits and energy certificate.

3. Reservation and preliminary contract

   A reservation is usually followed by the preliminary contract with a deposit (contrato de arras). Read carefully what happens to the deposit if either party withdraws.

4. Signing at the notary

   With the Escritura pública you pay the rest of the purchase price and get the keys.

5. Pay the tax

   The ITP or AJD is due shortly after signing. The regional tax authority or your Gestoría will tell you the exact deadline.

6. Registration in the land registry

   Only once you are registered is your ownership protected against third parties.

7. Transfer contracts

   Electricity, water, property tax and community fees are now in your name. How this works is explained under Setting up electricity and internet.

If you do not want to handle the purchase on your own, you will find the details under Buying a property with support.

Which running costs follow after the purchase?

After the purchase you pay the property tax (IBI) and the waste collection fee to the municipality every year, plus the community fees to the owners’ association (comunidad) and the building insurance. The amount depends on the municipality and the property; ask the seller to show you the latest tax notices and statements. If you do not live in Spain and use the property yourself, you also file a non-resident tax return every year (Modelo 210). More on this under Taxes in Spain.

Frequently asked questions