A €250,000 asking price is not a €250,000 purchase budget. In Spain, the tax depends first on whether the home is a resale or a first sale by a developer. You also need cash for the legal and registration process, and possibly a mortgage deposit. Work out the full figure before booking viewings.
Start with the type of property
A resale home is usually subject to ITP, the regional property transfer tax. A new home sold for the first time by a developer is normally subject to IVA (VAT), with AJD (stamp duty on the notarised deed) potentially payable too. The distinction is about the legal transaction, not simply how recently the building was completed.
These are different tax routes. Do not add ITP and IVA to the same purchase estimate. The Spanish Tax Agency explains the distinction in its guide to tax on new and used homes.
A resale home in the Valencian Community
For a 2026 purchase in the Valencian Community, a standard resale below €1 million may be subject to 9% ITP; a higher 11% rate applies to certain transactions above that threshold. Reduced rates may apply to qualifying buyers or homes. The Spanish Ministry of Finance lists the 2026 regional rates. Tax rules, dates and eligibility must be checked for the specific signing date before anyone relies on a quote.
Illustration: at a €250,000 price and an assumed 9% ITP rate, transfer tax would be €22,500. The subtotal is €272,500 before notary, registration, legal work, banking and any other agreed services. If you allow €5,000 as an illustrative reserve for those other items, the working budget becomes €277,500. The reserve is not a fixed charge or a quote.
For a €1.2 million villa, a higher ITP band can materially change the calculation. Have the tax adviser confirm which rate applies to the whole taxable base and whether any relief is available before treating a headline percentage as the final bill.
Why the taxable value can differ from the agreed price
For many resales, the valor de referencia (official reference value) can affect the ITP base. If it exceeds the agreed price, a calculation made only from the advertisement may understate tax. If the agreed price is higher, that price matters. Ask for the property's reference value and have the taxable base checked before paying a deposit. The Valencian tax authority explains the reference-value system.
A new-build home: IVA and AJD
For a standard first sale of a home by a developer, the general IVA rate is 10%. On a €350,000 price, that is €35,000 before AJD and the other purchase costs. A special 4% IVA rate exists for certain protected housing, so the tax status of the actual project matters.
AJD is a regional charge, and the applicable rate can depend on the deed and whether the purchase qualifies for a principal-residence reduction. A home called a “main residence” in conversation does not automatically qualify for every tax reduction. Have the current rate and eligibility confirmed before adding AJD to your budget.
What belongs in the rest of the budget?
- Notary and Land Registry fees for the transaction.
- Independent legal advice and document checks, if appointed.
- Gestoría or administrative fees where used.
- Bank valuation and applicable mortgage-related costs.
- Currency conversion and transfer charges, particularly when funds arrive from abroad.
- Furniture, appliances, repairs, utilities and community charges after completion.
- Any buyer-side agency or mortgage-broker fee agreed in writing.
A percentage allowance such as “another 2–3%” can help with an early estimate, but it is not an invoice. Ask for an itemised written estimate that states what is included, who pays each item and which amounts remain variable.
Check the agency fee in writing
RealMax states that its commission is included in the quoted property price rather than added as a separate mark-up for a buyer. Confirm the price and any separately commissioned service in writing for the specific property before reserving it. The complete estimate should distinguish the sale price, taxes and third-party costs.
If you need a mortgage, calculate the cash you need
Borrowing does not normally remove purchase tax or the need for a deposit. A useful cash calculation is: purchase price minus confirmed mortgage amount, plus taxes, purchase costs and a contingency. Use the bank's written offer and valuation rather than an advertised loan-to-value percentage.
For example, if a bank were to lend €175,000 on a €250,000 resale, the price gap alone would be €75,000. Adding the illustrative €22,500 ITP above takes that to €97,500 before other fees. If the bank values the home below the price and limits lending against its valuation, the buyer may need more cash.
Five questions to ask before setting a viewing budget
- Is this legally a resale or a first developer sale?
- Which autonomous community taxes the purchase, and when will the deed be signed?
- What are the agreed price and the property's valor de referencia?
- Will this be a qualifying principal residence, a second home or an investment?
- How much cash is available after the bank's confirmed loan and all purchase costs?
Give your lawyer or tax adviser the property details and proposed completion date for a transaction-specific estimate. If you are still comparing homes, tell RealMax your all-in budget so that the search begins at the right price level.
Illustrations use 2026 planning assumptions. Tax rules, taxable base and buyer eligibility should be confirmed for the specific transaction.