How to Calculate your Mortgage & Housing Purchase Costs in Spain (2026)
Purchasing a home involves two distinct operations: buying the property and securing a mortgage loan. Understanding the exact difference between the property price, estimated regional taxes, available savings, and the financing percentage on price is essential to avoid surprises before signing at the notary.
1. Purchase Taxes & Expenses Breakdown (New vs Second-Hand)
Expenses must always be computed based on property price (or official Catastro reference value for second-hand properties), NEVER on mortgage capital. Key costs include:
- Second-hand property (ITP): Property Transfer Tax (ITP) is regulated by each Autonomous Region. In Catalonia, a progressive marginal scale applies (10% up to €600k, 11% €600k–€900k, 12% €900k–€1.5M, and 13% for excess over €1.5M, under Legislative Decree 1/2024 art. 641-1 as amended by Decree-Law 5/2025). In the Valencian Community, the rate is 9% up to €1,000,000 and 11% on total value if over €1,000,000 (Law 13/1997 art. 13). In Asturias, rates apply to total base (8% ≤€300k, 9% ≤€500k, 10% >€500k). In the Balearic Islands, a progressive marginal scale from 8% to 13% applies. In the Basque Country, a 4% general rate applies to residential property purchases across Álava, Bizkaia and Gipuzkoa (with autonomous reduced rates such as 2.5% for habitual residences meeting specific requirements in each Historical Territory). In the Canary Islands, the standard ITP (TPO) rate is 6.5% for second-hand properties (with reduced rates for qualifying habitual residences). In Ceuta and Melilla, a 50% statutory rebate applies to the 6% base rate (yielding an effective 3% rate under TRITPAJD art. 57). In Aragon, a 5-tier progressive scale from 8% to 10% applies (€0–€400k 8%, €400k–€450k 8.5%, €450k–€500k 9%, €500k–€750k 9.5%, excess 10%). In Castile and León, 8% applies to the first €250,000 and 10% to the excess. In Cantabria, a 9% standard rate applies (with reduced habitual residence tiers of 7% general, 4% and 3% for protected groups). In Ceuta and Melilla, a 50% statutory rebate applies to the 6% base rate (3% effective under TRITPAJD art. 57 bis) and to new property AJD (0.25% effective). In other regions standard rates apply (6% Madrid/Navarre, 7% Andalusia/La Rioja, 8% Galicia/Murcia, 9% Castile-La Mancha).
- New Construction (VAT / IGIC + AJD): 10% standard VAT in Mainland & Balearic Islands (or 7% IGIC in Canary Islands, 4.5% IPSI in Ceuta/Melilla) plus Documented Legal Acts tax (AJD) ranging between 0.5% and 1.5% depending on region (e.g. 1.4% general in Valencian Community under Law 13/1997 art. 14).
- Notary & Property Registry: Official tariffs regulated by Royal Decrees 1426/1989 and 1427/1989 (~0.35% estimated customary buyer notary share and ~0.18% registry). In purchase deeds, Civil Code art. 1455 assigns the original deed to seller and copies to buyer unless agreed otherwise; registry is assumed by the buyer registering ownership.
- Gestoría & Property Appraisal: Purchase gestoría processing fees (~300€–400€, optional if contracted) and official certified ECO property appraisal required for mortgage underwriting (~350€, assumed by borrower).
2. Buyer vs Bank Expense Split under Law 5/2019
Under Spanish Real Estate Credit Law 5/2019 and Royal Decree-law 17/2018, mortgage security setup expenses (mortgage deed notary fee, mortgage registry registration, loan gestoría, and mortgage AJD tax) are 100% assumed by the lender (BANK). The borrower/buyer pays property purchase taxes (ITP or VAT/IGIC + purchase AJD) and the official certified property appraisal required for the loan. For purchase deed conveyance expenses, notary original deed corresponds to seller and copies to buyer by default (art. 1455 Civil Code), registry to the buyer requesting inscription, and purchase gestoría only if contracted.
3. French vs German Amortization System
Under the French system (most common in Spain), monthly installments remain fixed throughout the loan term (assuming fixed interest), paying higher interest at the beginning. Under the German system, principal repayment is constant every month, resulting in decreasing monthly payments over time as interest is computed on decreasing remaining principal.
4. Practical Simulation Example (€300,000 Property)
To illustrate how the figures and financing hypothesis interact in a typical second-hand purchase scenario (e.g. in a region with 6% standard ITP):
- Property price: 300.000 €
- Assumed financing (80% hypothesis): 80% = 240.000 €
- Estimated own contribution: 60.000 €
- Estimated taxes (ITP 6%): 18.000 €
- Other estimated purchase costs (notary, registry, gestoría, appraisal): 2.340 €
- Estimated savings for this scenario: 80.340 € (60.000 € + 18.000 € + 2.340 €)
Note: The 80% financing percentage is a simulation hypothesis. Actual financing and loan conditions will depend on the banking institution, the official appraisal value, and the borrower’s solvency assessment.
Official Tax Authorities & Regulatory Sources
- Banco de España (BdE) — Portal del Cliente Bancario (Criterios y Fórmulas Financieras)
- Agencia Tributaria (AEAT) — Impuestos sobre vivienda
- Agència Tributària de Catalunya (ATC) — Tarifa ITP (DL 1/2024 art. 641-1 / DL 5/2025)
- Dirección General del Catastro — Valor de Referencia
- BOE — Ley 5/2019 de Contratos de Crédito Inmobiliario