08Chapter 08 — Taxes & costs

The asking price isn't the purchase price.

Taxes and transaction costs sit on top of the price you negotiate. Budget for them before you make an offer, not after.

Worked example

A €600,000 resale property.

Property price€600,000
ITP — general Madrid transfer tax at 6%Reduced rates can apply in specific circumstances.€36,000

Source: Comunidad de Madrid — general ITP rate

Then, separately

Costs that vary by transaction.

We do not publish fixed figures for these, because they genuinely depend on the property, the lender and the professionals you appoint.

  • Legal fees — your independent lawyer
  • Notary fees — set by an official scale, depends on the deed
  • Land Registry fees
  • Valuation (tasación) where a mortgage is involved
  • Mortgage-related costs, which vary by lender and product
  • Gestoría fees for filings
  • Renovation, if the property needs work

New build

A different tax treatment.

New-build residential property is generally subject to VAT (IVA) at 10%, plus the applicable AJD (stamp duty) rather than ITP. Rates and their application depend on the property, the region and the specific transaction, and they change over time.

Always confirm the tax treatment for your specific purchase with a qualified tax advisor before committing.

Source: Comunidad de Madrid • Spanish national VAT rules

The Madrid Property Buyer Guide 2026

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