Start with the difference between resale and new-build
Tax is usually the largest cost on top of the purchase price. Which tax applies depends, among other things, on whether you buy a resale home or a new-build directly from a business.
For a resale property in the Valencian Community, the general transfer tax (ITP) rate has been 9% since 1 June 2026. Under the current regional rules, a rate of 11% applies above €1,000,000. Reduced rates exist for certain situations, subject to conditions.
New-build: VAT and AJD
For a standard new-build home subject to VAT, the usual IVA rate is 10%. Actos Jurídicos Documentados (AJD) may also be due. The general AJD rate in the Valencian Community is currently 1.4%, with different rates in certain cases.
Tax rules and exceptions can change, so the exact tax position should always be confirmed by the appropriate tax adviser, lawyer or gestor before you commit to a purchase.
Notary and Land Registry
In Spain, ownership transfer is normally recorded in a public deed before a notary. The new ownership is then registered with the Registro de la Propiedad.
The costs depend on factors such as the value, size and contents of the deed. It is therefore better to work with a specific estimate than a single fixed percentage.
Legal and technical support
Many international buyers instruct an independent lawyer to check ownership, charges, permits, contracts and other legal points. Depending on the property, a building surveyor or other technical specialist may also be sensible.
These are not simply “extra costs”. On a major purchase, they are costs aimed at making uncertainties visible before completion.
Finance and other costs
If you use a mortgage, additional costs may arise, for example for a valuation and certain banking or file-related items. Which costs are paid by the buyer or the lender depends on the financing and current rules.
There may also be practical costs for translations, powers of attorney, NIE administration, insurance, utilities or works you want to carry out immediately after purchase.
Work with a total budget, not only a purchase budget
If you have €600,000 available in total, it is usually not sensible to automatically search for homes priced at €600,000. First decide what you want to reserve for taxes, professional support, furnishing, renovation and a financial buffer.
At byVERO we therefore include the wider financial picture in the search profile. That helps prevent the perfect home from pushing the overall project beyond your comfortable budget.
The right question is not only “what can I buy?” but “what do I want to spend in total until the home is mine and ready to use?”
byVERO PROPERTY FINDING
Would you rather not make these decisions alone?
We start with your situation, search with purpose and assess both the property and its surroundings critically.
