When you start looking at property in Spain, it is easy to focus on the listing price. A beautiful apartment by the beach for under £200,000 might seem like a bargain compared to UK prices. But the truth is, the cost of buying in Spain goes well beyond the asking price.

If you are thinking about investing in Spain in 2025, understanding the full breakdown of costs is essential. Here is what you need to know before you sign on the dotted line.

1. Taxes and Fees

One of the biggest surprises for many buyers is the amount you will pay in taxes and legal fees. These vary depending on whether you are buying a new build or a resale property.

For a resale, expect to pay:

• Transfer Tax (Impuesto de Transmisiones Patrimoniales): usually between 6 to 10 percent depending on the region
• Notary fees, land registry, and legal costs: around 1.5 to 2 percent combined

For new builds, the structure is different:

• VAT (IVA): typically 10 percent
• Stamp Duty (AJD): about 1.5 percent
• Notary and legal fees on top of that

In total, most buyers can expect to add an extra 10 to 14 percent on top of the property price.

2. Legal Representation

Having an independent solicitor is crucial. Do not rely solely on the developer’s lawyer or an estate agent’s recommendation. Legal fees generally range from £1,000 to £2,500 depending on the complexity of the purchase and whether you need additional services like a power of attorney or NIE application.

3. Ongoing Costs After You Buy

Once you own the property, there are regular costs to factor in. These may include:

• Community fees (for apartments or gated developments)
• Property tax (IBI)
• Rubbish collection tax
• Utility bills
• Home insurance

Even if you are not living in the property full time, you will still need to cover these costs each year. If you are renting it out, you will also need to pay tax on your rental income.

4. Currency Fluctuations and Transfers

If you are buying in euros but earning in pounds, exchange rate changes can affect your final cost. It is worth using a reputable foreign exchange service instead of a standard bank transfer. Some buyers save thousands this way.

5. Furniture and Setup

Most properties in Spain do not come fully furnished. You may also need to pay for air conditioning installation, kitchen appliances, or broadband setup. These smaller costs can quickly add up, especially if you are preparing the property for holiday lets.

Buying in Spain is still a fantastic opportunity in 2025, but it is important to go in with eyes wide open. The property price is just the start. Once you factor in the taxes, legal support, and setup costs, you will have a more realistic picture of what to budget.

With the right preparation and advice, the process can be smooth, transparent, and absolutely worth it.