When buying property in Malaga, foreign buyers must pay several mandatory taxes and legal fees beyond the sale price. These vary depending on the type of property, its value, and whether it’s new or resale.
Here’s your complete legal breakdown.
💰 1. ITP (Impuesto de Transmisiones Patrimoniales) – Resale Properties
If you’re buying a second-hand property, the main tax is:
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ITP rate in Malaga (Andalusia):
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7% flat rate for most purchases (since regional reform)
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Some exceptions apply above €1 million or for subsidized housing
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📌 Paid within 30 days of signing the notary deed
📌 Filed with the Junta de Andalucía tax office
🏗️ 2. VAT (IVA) and Stamp Duty (AJD) – New Builds
If you’re buying a new property directly from a developer:
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VAT (IVA): 10%
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Stamp Duty (AJD): 1.2% in Andalusia
📌 Paid instead of ITP
📌 Applies to newly built residential properties, garages, and storage
🧾 3. Notary Fees
Fees depend on:
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Property value
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Number of pages and parties
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Complexity of the deed
🧮 Typical range: €600 – €1,200
📌 Paid directly to the notary at signing
🏛️ 4. Land Registry Fees
This is the cost of registering the deed in your name at the Registro de la Propiedad.
🧮 Range: €400 – €1,000 depending on value and complexity
📌 Your lawyer handles this as part of conveyancing
⚖️ 5. Legal Fees
Foreign buyers should always hire an independent property lawyer.
At Borderless Lawyers:
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Fixed-fee packages based on property value
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Includes: due diligence, contracts, notary, registration, and tax filing
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No hidden costs
🧮 Expect: €1,500 – €3,000 depending on scope
💳 6. Bank & Currency Costs
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Bank admin for issuing Spanish bank cheques: €150–€300
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Currency exchange losses can add 1%–3% if not managed properly
✅ We help clients open bank accounts and use trusted FX providers.
🧱 7. Optional Costs
| Expense | When It Applies | Typical Cost |
|---|---|---|
| Surveyor / Architect | Rural or older homes | €300–€700 |
| Mortgage Fees | If financing in Spain | 1%–2% of loan |
| Home Insurance | Required for mortgages | €150–€400/year |
| Community Fees | Condos or urbanizations | Varies by building |
💸 Estimated Total Purchase Costs
| Property Price | Estimated Total Costs (All-In) |
|---|---|
| €150,000 | €11,000–€13,000 |
| €300,000 | €22,000–€26,000 |
| €500,000 | €35,000–€42,000 |
✅ We provide a detailed cost estimate for each client before signing anything.
📅 When Are These Taxes Paid?
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ITP / IVA / AJD: Within 30 days of notary signing
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Legal fees, notary, registration: At time of deed or shortly after
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Ongoing costs (IBI, community, utilities): After registration
🧑⚖️ How Borderless Lawyers Helps
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Full tax compliance & filing
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Personalized cost breakdown
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Advice on structuring purchases (e.g. joint buyers, non-residents)
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Power of Attorney to manage everything remotely
📞 Buying in Malaga? Let’s Make the Legal & Tax Side Easy
Don’t get caught off guard by unexpected costs. We make sure your Malaga property purchase is fully transparent — from first offer to tax filing.