Resale Property: ITP Transfer Tax
For resale (second-hand) properties, the main tax is the Impuesto de Transmisiones Patrimoniales (ITP) — transfer tax. In Andalucía, the ITP rate is 7% of the purchase price (as of 2026). This is paid by the buyer and is due within 30 days of signing the title deed at the notary.
Example: buying a resale apartment in La Cala de Mijas for €250,000 — ITP payable = €17,500. Your property lawyer files the ITP return and makes the payment on your behalf as part of the post-completion process.
Note: The Spanish Tax Agency (AEAT) has the right to challenge the ITP valuation if they believe the declared purchase price is significantly below market value. If challenged, they may issue a complementary ITP assessment (comprobación de valores). Your lawyer can advise on the market value context for your specific property.
New Build from Developer: IVA + AJD
For new-build properties purchased directly from a developer (promotor), ITP does not apply. Instead, you pay:
- IVA (VAT): 10% of the purchase price for residential property. (21% for commercial/land).
- AJD (Actos Jurídicos Documentados): Stamp duty at 1.2% of the purchase price in Andalucía. This tax applies to the notarisation of the title deed.
Example: buying a new build apartment in Mijas for €300,000 — IVA = €30,000 + AJD = €3,600. Total purchase taxes = €33,600 (11.2%).
Notary Fees
Notary fees for a property purchase deed are regulated by law and depend on the value of the property. For a typical residential property in Mijas, expect notary fees of approximately €800–€2,000. The notary fee is paid on the day of signing by the buyer.
Land Registry Fees
After signing at the notary, the deed must be registered at the Land Registry (Registro de la Propiedad). Land Registry fees are also legally regulated and are typically approximately €400–€1,000 for a standard residential purchase. Registration is usually completed within 2–6 weeks of the notary signing.
Legal Fees
Your property lawyer's fees for handling the purchase — including all due diligence, contract review, NIE assistance, notary representation, ITP filing, and Land Registry liaison — are typically approximately 1% of the purchase price (plus VAT). For a €200,000 property, this would be approximately €2,000 + €240 VAT.
This is one of the most important fees in the entire transaction — your lawyer is the only professional working exclusively for you, and their work protects you from risks that could far exceed their fee.
Mortgage Costs (If Applicable)
If you are purchasing with a Spanish mortgage, since 2019, the majority of mortgage-related costs (bank valuation, mortgage AJD, and mortgage notary/registry fees) are paid by the bank rather than the buyer — a major change from previous practice. As a buyer, you are responsible only for the appraisal fee (typically €300–€500) and your own legal costs for reviewing the mortgage conditions.
Ongoing Annual Costs After Completion
Beyond the one-off purchase costs, non-resident property owners in Mijas must also budget for:
- IBI (Impuesto sobre Bienes Inmuebles): Annual property tax, typically €300–€1,500/year depending on the property's catastral value.
- Non-resident income tax (IRNR): If not renting, a deemed income tax on the catastral value (~0.4–1.1% × 19–24% for EU/non-EU nationals). Typically €200–€800/year.
- Community of owners fees: If in a development with shared facilities, typically €50–€500/month depending on the development.
- Utilities and insurance.