Are you dreaming of an apartment in Estepona?

On top of the agreed purchase price, you will have to deal with taxes, notary fees, and legal guidance. In this article, we outline all purchasing costs for new builds and resales clearly, so you won't face any surprises.

Whether it concerns a modern new build project near Selwo or a charming apartment in the authentic town center: Estepona is currently one of the most popular locations on the Costa del Sol.

However, anyone buying a property in Spain wants to avoid financial surprises at the notary. On top of the agreed purchase price, you must take into account an additional budget for taxes, notary fees, and legal representation.

In this article, we list all costs and taxes for buying an apartment in Estepona in a clear overview.

1. Which taxes do you pay in Andalusia?

Which tax you pay when purchasing real estate in Andalusia depends on the property type: are you choosing a resale property or a new build (off-plan)?

A. Resale Property → Property Transfer Tax (ITP)

When you buy an apartment from a private owner, you pay Property Transfer Tax or Impuesto de Transmisiones Patrimoniales (ITP).

The rate in Andalusia: A fixed rate of 7% on the purchase price.

Calculation example: If you buy an existing apartment in Estepona for €300,000, the ITP will be exactly €21,000.

Attention regarding the Reference Value (Valor de Referencia): The Spanish tax authorities calculate the 7% ITP on the highest value: either the actual purchase price or the official reference value from the Land Registry (Valor de Referencia). An experienced buyer's agent or lawyer always verifies this in advance to prevent tax reassessments.

B. New Build (Off-plan) → VAT (IVA) + Stamp Duty (AJD)

If you buy a new build apartment directly from a developer, you do not pay ITP, but two other charges:

1. IVA (VAT): 10% on the purchase price.

2. AJD (Stamp Duty / Actos Jurídicos Documentados): 1.2% in the region of Andalusia.

Calculation example: If you buy a new build apartment for €300,000, you pay €30,000 in VAT and €3,600 in Stamp Duty. Total taxes: 11.2% (€33,600).

2. Notary Fees, Land Registry, and Gestoría

In addition to taxes, there are administrative and legal costs associated with the transfer of ownership:

Notary Fees (Notaría): The fees of the Spanish notary are fixed by law via official tariff scales. On average, these costs range between €800 and €1,200, depending on the purchase price and the length of the deed (Escritura).

Land Registry (Registro de la Propiedad): To officially register the apartment in your name at the Estepona Land Registry, you will pay approximately €500 to €800.

Gestoría (Administrative handling): A gestoría handles the actual payment of taxes and the submission to the Land Registry. This costs an average of €300 to €500.

3. Legal Representation: The role of the Lawyer (Abogado)

In Spain, the notary fulfills a primarily neutral role: checking the identity of the parties and overseeing a correct signature. However, the notary does not carry out an in-depth investigation into the legal status of the property.

Therefore, hiring an independent, local lawyer is essential. Your lawyer will perform the legal due diligence:

Is the seller authorized and the sole legal owner?

Are there any debts, mortgages, or liens on the property?

Have all building permits, the First Occupancy License (Licencia de Primera Ocupación), and local property taxes (such as IBI) been fully settled?

Lawyer's fees: On average 1% (plus VAT) of the agreed purchase price.

Summary: Total purchasing costs in Estepona

As a rule of thumb for your total budget on top of the agreed purchase price, you can use the following guidelines:

When purchasing a resale property, you pay 7% ITP transfer tax. Allow an additional 2% to 3% for the notary, land registry, lawyer, and administration. In total, for a resale property, you should calculate an extra budget of 9% to 10% on top of the agreed purchase price.

When purchasing a new build (off-plan), you pay 10% VAT (IVA) plus 1.2% stamp duty (AJD). Together with the fees for the notary, land registry, lawyer, and gestoría (around 2% to 2.5%), you should allow for a total extra budget of 13% to 13.5% on top of the agreed purchase price.

Would you like to buy an apartment in Estepona hassle-free?

Are you curious about the current range of new builds and resale apartments in Estepona, or would you like an exact cost calculation for a specific property?

Feel free to contact our team. We will guide you step by step: from the first viewing and price negotiation to key handover at the notary.