1%
Where the property value does not exceed €150,000 and it will be the buyer's habitual residence.
New-Build Purchase Costs in Andalucia · 2026 Guide What a new-build costs on top of the price
Every competitor writes a Spain-wide cost guide quoting 8 to 13 per cent. New-build in Andalucia is a specific number, and it is knowable before you offer.
Most cost guides for Spain quote a single national range, usually somewhere between 8 and 13 per cent. That range exists because it is averaging two different purchases across seventeen regions. For a new-build in Andalucía the tax side is not a range at all -- it is two fixed rates, and you can work out the number exactly.
The Two Taxes
IVA and AJD, not transfer tax
A new-build bought from the developer is a first transmission, so it carries VAT rather than the transfer tax that applies to a resale. In Andalucía that means two separate taxes on the same purchase.
IVA (VAT)
10% of the purchase price. The national rate for new residential property. It drops to 4% for officially protected housing (VPO de régimen especial), which does not apply to the developments on this site.
AJD (stamp duty)
1.2% of the purchase price in Andalucía. This is the regional rate, set at 1.2% since April 2021 and made permanent by the region's Ley 5/2021. Older guides still quote 1.5%, which was the rate before that change.
Total tax
11.2% on a new-build. For comparison, a resale in Andalucía carries ITP at 7% and no AJD -- so the tax on a new home is roughly four points higher than on an equivalent resale.
Reduced Rates
When AJD is lower than 1.2%
Andalucía applies reduced AJD rates in specific circumstances. They are worth checking before you assume the general rate, though most purchases on this coast fall outside them.
0.3%
Where the buyer is under 35 and the property will be their habitual residence.
0.1%
For large families (familia numerosa) and for buyers with a recognised disability, subject to the region's conditions.
On Top of Tax
Notary, registry and legal fees
Notary and Land Registry fees are set by national tariff, so they do not vary between providers. Legal fees do.
Notary
Roughly €600 to €1,200 on a typical residential purchase, scaling with the price and the length of the deed. Regulated, so shopping around does not change it.
Land Registry
Roughly €400 to €700. Also regulated.
Legal
Typically 1% of the price plus 21% IVA on the fee, or a fixed quote in the €1,500 to €3,000 range for a straightforward purchase. This one is negotiable, and it is the line worth comparing quotes on.
Worked Example
A €450,000 new-build
IVA at 10%
€45,000
AJD at 1.2%
€5,400
Notary and registry
Roughly €1,000 to €1,900
Legal
Roughly €4,500 plus IVA at 1%, or a fixed quote
Budget for
Around €57,000, or about 12.5% over the price. Taxes are the fixed €50,400 of that; the rest moves with who you instruct.
That is the acquisition cost. It does not include mortgage arrangement and valuation fees if you are borrowing, furnishing, or the running costs that start after completion -- IBI, community fees and utilities.
With a Mortgage
What a mortgage adds to the total
If you are borrowing, three of the four costs below fall on you and one does not. The one that does not is the one older guides still list as yours.
Valuation
The tasación, €300 to €600, paid before the bank will issue a binding offer. The report is valid for six months, and the bank lends against the lower of valuation and price.
Arrangement fee
The comisión de apertura, 0% to 1% of the loan. Negotiable, and often waived on non-resident lending at a conservative loan-to-value.
AJD on the mortgage
Nothing. The lender has paid the stamp duty on the mortgage deed since Real Decreto-ley 17/2018. Any guide still listing it as a buyer cost predates that change.
Broker
0.5% to 1% of the loan, or a fixed fee, if you use one. Worth it where a broker reaches lenders that price non-resident files differently.
Non-resident lending on this coast typically runs to 60% or 70% of the lower of price and valuation. The cash you need is the deposit plus everything on this page, not the deposit alone.
When It Falls Due
The costs do not arrive together
A single percentage makes it sound like one bill at the end. In practice the tax arrives in instalments and the professional fees arrive at the deed.
At reservation
Nothing beyond the reservation fee itself, and that counts towards the price rather than sitting on top of it.
During construction
IVA at 10% is charged on each stage payment as you make it, not held back to completion. This is the line most budgets get wrong: the cash required at each stage is the percentage plus a tenth of it again.
At the deed
The balance of the price, the AJD in full, notary, Land Registry and your lawyer's fee. This is where the largest single transfer happens.
After Completion
The costs that start rather than stop
Acquisition cost is the number people compare. Running cost is the number they live with, and it is knowable before you reserve.
IBI
Municipal property tax, charged on the valor catastral rather than the market price, broadly 0.4% to 1.1% of it a year. Because the catastral value is a fraction of what you paid, the bill is usually a few hundred to a couple of thousand euros.
Community fees
Set per home by participation quota. A development with a spa, heated pools and a concierge costs more to run than a small block, and the community budget exists before you reserve. Ask for it.
Refuse
The basura charge, billed by the town hall, modest, usually annually or quarterly depending on the municipality.
Non-resident income tax
Spain taxes an imputed income on a second home even when it is never let, declared on Modelo 210. Residents of the EU and EEA are taxed at 19%, others at 24%.
Common Questions
What buyers ask us about cost
Is the 11.2% negotiable?
No. IVA is set nationally and AJD by Andalucía, and neither moves on a private purchase. What is negotiable is the legal fee, and the arrangement fee if you borrow.
Do I pay plusvalía municipal?
No. That tax falls on the seller, and on a new-build the seller is the developer. It is a resale question that follows buyers into new-build guides where it does not belong.
Is the IVA paid in one payment at the end?
No. It is charged on each stage payment as that payment is made. A schedule quoting 30% at contract means 30% plus IVA on that 30%, and the same at every stage after it.
What is the 3% retention I keep reading about?
It applies where the seller is a non-resident, which makes it a resale matter. Buying from a Spanish developer it does not arise at all.
Can I reclaim the IVA?
Only where the buyer is a business and the property is put to a taxable activity, and that brings its own obligations. On a home bought privately, no.
Before You Rely On This
Figures current at August 2026
The IVA rate is national and the AJD rate is set by Andalucía; both can change, and the reduced rates carry conditions that depend on your circumstances. This page is general information about how the costs are structured, not tax or legal advice. Confirm the figures for your own purchase with your lawyer or tax adviser before you commit to anything. Nueva Living provides a written cost breakdown for a specific residence on request.
This guide is general information about buying a new-build home on the Costa del Sol. It is not legal, tax or financial advice, and does not replace independent professional advice tailored to your situation.
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