Taxes and costs of buying a home in Sotogrande in 2026 (with a worked example)

How much does it really cost to buy a home in Sotogrande, on top of the price? It is the first question almost every client asks, and the answer depends mainly on one thing: whether the property is a resale or a new build. Here we explain every tax and cost, with a worked example for a €1.5 million villa.

Resale property: transfer tax (ITP)

When you buy from a private seller you pay Transfer Tax (Impuesto de Transmisiones Patrimoniales, ITP). In Andalusia the standard rate is 7%. Reduced rates of 6% and 3.5% exist, but only for main homes up to €150,000 or specific cases, so they almost never apply in Sotogrande.

Important: the tax is calculated on the higher of two values, the price in the deed or the Land Registry’s reference value (valor de referencia del Catastro). If the reference value is higher than the agreed price, you pay tax on it. It is worth checking before you sign the deposit contract.

New build: VAT and stamp duty

If you buy a brand-new home directly from the developer, there is no ITP. Instead you pay 10% VAT on the price and 1.2% stamp duty (Actos Jurídicos Documentados, AJD) on the deed. That is why, for the same price, a new build costs more in taxes than a resale.

Notary, land registry, lawyer and gestoría

On top of the taxes come the completion costs. Notary and Land Registry fees are regulated and rise with the price: for a €1.5m villa, allow around €1,500–2,500 for the notary and €1,000–1,500 for the registry. A gestoría, if you use one, costs about €300–500. Lawyers’ fees are not fixed; locally they are usually around 1% of the price plus VAT. On a purchase of this size, a good lawyer is not optional.

Example: €1,500,000 resale villa

ITP (7%): €105,000
Notary: ≈ €2,000
Land Registry: ≈ €1,300
Lawyer (1% + VAT): ≈ €18,150
Gestoría: ≈ €400
Approximate total: €126,850, about 8.5% of the price.

The same villa bought new from the developer would cost €150,000 in VAT and €18,000 in AJD, plus the same completion costs: around €190,000, about 12.7%.

If you buy with a mortgage

Since 2019 the bank pays the stamp duty on the mortgage, the notary for the loan and its registration. The buyer pays for the valuation (usually €400–800 for a villa) and any arrangement fee. Spanish banks do lend to non-residents, although normally up to 60–70% of the valuation.

If the seller is not resident in Spain

The buyer must withhold 3% of the price and pay it to the Spanish Tax Agency on account of the seller’s taxes (form 211). It is not an extra cost, as it is deducted from the payment to the seller, but it must be planned for on completion day. Your lawyer handles it.

What the seller pays

The municipal capital gains tax (plusvalía municipal) and the agency fee are paid by the seller, unless agreed otherwise. We always recommend putting this in writing in the deposit contract.

After the purchase: the yearly costs

As an owner, every year you will pay IBI (council tax) and the refuse charge to San Roque Town Hall, community fees if the home is in a development with shared areas and, in much of Sotogrande, the fee of the Entidad de Conservación, which maintains roads, gardens and security. Ask the seller for the latest bills before signing: they are the most reliable way to know the real cost.

If you are not resident in Spain and do not let the property, you must file Non-Resident Income Tax every year: the Tax Agency attributes a notional income of 1.1% or 2% of the cadastral value, taxed at 19% for EU residents and 24% for everyone else, including the UK. If you let the property, you are taxed on the rental income. And if your net wealth is high, ask your adviser about Wealth Tax and the Solidarity Tax on Large Fortunes.

In short

Budget around 8.5–10% of the price for a resale purchase and 12–13% for a new build. All figures are guidelines and depend on each transaction, so always ask your lawyer for a personalised calculation before signing the deposit contract.

If you are thinking of buying, our step-by-step guide to buying a home in Sotogrande covers the whole process, from the NIE to the deed. And if you are still choosing an area, start with our guides to Sotogrande Alto, Costa, La Reserva and the surroundings or browse our properties for sale. We will be delighted to help.