Mortgage Expenses in Spain 2025: Who Pays What?

Note: This content is specific to the Spanish property market.

If you are a foreigner buying property in Spain, you might have heard horror stories about high closing costs. While taxes remain high, the mortgage setup costs have dropped significantly since the new Mortgage Law of 2019.

Before 2019, the buyer paid almost everything. Now, the bank must pay the majority of the mortgage-related expenses.

Breakdown: Who Pays What?

1. Paid by the BANK (The Lender)

• Notary Fees (Notaría): For the mortgage deed.
• Registry Fees (Registro de la Propiedad): For registering the mortgage charge.
• Gestoría (Agency): The administrative fees for processing the tax and deeds.
• AJD (Stamp Duty): The "Impuesto de Actos Jurídicos Documentados" on the mortgage liability. This used to be a huge cost for borrowers, now the bank pays it.

2. Paid by YOU (The Borrower)

• Appraisal (Tasación): You must pay for the official valuation of the property (~300€ - 500€). Tip: If you pay for it, you own it, and you can take it to any bank to negotiate.
• Opening Fee (Comisión de Apertura): Some banks charge this (0.5% - 1%), but many online banks offer 0%.
• Your Copy of the Deed: A small fee (~50€) for your personal copy of the contract.

The Elephant in the Room: The Purchase Taxes

While the mortgage is cheap to set up, buying the house is expensive. You still need to pay:

• ITP (Transfer Tax): For second-hand homes. Varies by region (Community).
  • Madrid: 6%
  • Andalusia: 7%
  • Catalonia, Valencia, Galicia: 10%
• VAT (IVA): For new homes (10%).

Conclusion

When calculating your budget for Spain, allocate 10% to 12% of the purchase price for taxes and closing costs. However, don't let the bank charge you for the Notary or Registry of the mortgage loan itself—that's illegal now.

👉 Spanish Mortgage Cost Calculator