Many foreign buyers are surprised to discover that the final cost of a property in Malaga is 8–13% higher than the sale price due to taxes and legal fees.
This guide breaks down all the costs you’ll face so you can budget accurately and avoid hidden surprises.
🧾 1. Transfer Tax (ITP) – Most Common
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Applies to resale properties
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In Malaga (Andalusia), ITP is:
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7% flat rate on the purchase price
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Applies regardless of buyer nationality or residency
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📌 Example: If you buy a home for €300,000, the ITP is €21,000.
🏢 2. VAT (IVA) – New Builds Only
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If you buy new construction from a developer, you’ll pay:
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10% VAT (IVA)
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Plus 1.2% stamp duty (AJD) in Andalusia
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📌 Example: A €300,000 new home = €30,000 IVA + €3,600 AJD = €33,600 total
🖋️ 3. Notary Fees
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Fixed on a sliding scale by law
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Depends on property price and document complexity
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Usually ranges between €600 – €1,200
📌 The buyer usually pays this in Spain.
🧾 4. Land Registry Fees
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After signing the deed, your ownership must be registered
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Registry fees typically range from €400 – €900
📌 Based on property value and number of pages in the deed.
⚖️ 5. Legal Fees – What to Expect
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At Borderless Lawyers, we offer flat-fee packages
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Our full service includes:
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Due diligence
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NIE application
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Arras contract review
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Notary coordination
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Registration & tax filing
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💡 Legal fees typically range from €1,500 to €3,500, depending on complexity.
🧮 6. Summary of Estimated Costs (for a €300,000 Property)
| Cost Item | Amount (€) |
|---|---|
| Transfer Tax (7%) | €21,000 |
| Notary + Registry | €1,500 (avg.) |
| Legal Fees | €2,000 (est.) |
| Other admin/translation | €300–€600 |
| Estimated Total | €24,800–€26,000 |
📌 Budget at least 8–10% extra on top of your purchase price.
🔁 Recurring Costs After Purchase
Once you own the property, expect the following annual costs:
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IBI (Property Tax): €300–€1,200 depending on value
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Garbage Tax: €100–€200
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Non-Resident Tax: If you don’t live in Spain full-time
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Community Fees: If in a building or urbanization
🧑⚖️ Can I Deduct or Reduce These Taxes?
Yes — with proper legal structuring, some buyers may:
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Reduce non-resident tax
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Avoid inheritance tax
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Deduct expenses if renting
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Use tax treaties to avoid double taxation
📌 We advise on tax optimization strategies based on your country of residence.
📞 Buying in Malaga? Let’s Make Sure You Budget Smart
Borderless Lawyers provides transparent cost estimates before you sign anything — so there are no surprises at closing.