The purchase of a second-hand home is one of the most common transactions in the Spanish real estate market, especially in coastal areas like the Costa Blanca. However, beyond the price of the property, it is essential to know which taxes and fees this transaction involves. In this article, we clearly explain the taxes on buying a second-hand home, how much you must pay, and what you should consider to avoid surprises.
What taxes are paid when buying a second-hand home?
When acquiring a used property, the buyer is primarily obliged to pay two tax concepts:
Property Transfer Tax (ITP)
This is the main tax in these types of transactions. It is paid by the buyer, and the rate varies according to the autonomous community. In the Valencian Community, for example, the general ITP rate is 10% of the purchase price.
💡 If you buy for €150,000, the ITP will be €15,000.
In some cases, it can be reduced (to 8% or even 6%) if the buyer is under 35 years old, is acquiring their primary residence, and meets certain requirements. At Mayrasa, we provide personalized information on whether you qualify for these reductions through our real estate advisory service.
Municipal Capital Gains Tax (IIVTNU)
This tax is paid by the seller, but it is important for the buyer to be aware of it as it can be negotiated with the owner if there are doubts about its calculation. This tax applies to the increase in land value since the last transfer and is collected by the local council.
Are there other costs when buying a used home?
Yes. Besides the ITP, the buyer must bear the following purchase-related costs:
Notary fees
For the public deed of purchase. Between €600 and €1,200, depending on value.
Property registry fees
To register the home in your name. Around €400–€600.
Management fees (if buying with a mortgage)
To process bank documentation.
Property appraisal (if applying for a mortgage)
Between €300 and €500.
Agency fees (in some cases).
You can find all these steps in our guide to real estate services and request an estimated quote with no obligation.
What if I buy a home with a mortgage?
If financing the purchase with a mortgage, you will additionally pay:
- Appraisal fees, as mentioned earlier.
- Opening commission (if applicable).
- Mortgage deed fees (currently most are borne by the bank).
If you are considering this step, you can review our article about the minimum down payment to finance an apartment or contact us directly to resolve your doubts.
How much money do I need in total?
A practical rule is to add between 10% and 12% on top of the property price to cover taxes and associated costs.
For example:
| Property Price | ITP (10%) | Other Approx. Costs | Total Needed |
|---|---|---|---|
| €120,000 | €12,000 | €3,000 | €135,000 |
Having a clear appraisal from the start will help you better plan your investment. You can request yours here.
What is the difference with a new-build home?
The main difference lies in the type of tax:
- New-build pays VAT (10%) and Stamp Duty (AJD).
- Second-hand pays ITP (6–10%), but no VAT.
Both processes have different advantages. At Mayrasa, we offer advice for both new builds and second-hand homes.
What documentation is needed to pay the taxes?
To pay the ITP, you need to submit:
- Authorized copy of the purchase deed.
- ID card or NIE of the buyer.
- Completed Form 600 (submitted to the autonomous community’s tax office).
- Proof of payment of the tax (bank transfer or payment letter).
This process can be done in person or online, and Mayrasa supports you throughout if you choose to work with our team.
What happens if I don’t pay the ITP on time?
The usual deadline for paying the Property Transfer Tax is 30 working days from the signing of the deed. If not paid on time:
- Late payment surcharges and interest will apply.
- You might face issues registering the property at the Property Registry.
- The tax authority could initiate a sanctioning procedure.
That is why good financial planning and entrusting these procedures to an experienced real estate agency is essential to ensure no detail is missed.
How to reduce the fiscal impact of the purchase?
There are legal ways to optimize the taxes you pay:
- Take advantage of regional tax reductions if you are young, part of a large family, or a first-time buyer.
- Negotiate with the seller certain costs (such as notary or IIVTNU).
- Choose a property with a better real value to market price ratio, something you can achieve with help from our selected properties.
Our team can help you evaluate each case to maximize your investment and reduce tax burdens during the process.
Conclusion
Buying a second-hand home involves paying taxes like the ITP and bearing some additional costs. Knowing this information will allow you to plan better and avoid surprises during the process.
If you are thinking of purchasing a used home in Torrevieja or the Costa Blanca, you can contact us through our contact page or learn more about us in the about us section. You can also work with us if you are interested in joining a leading team in the sector.
