How Much Does It Cost to Buy a Home in Málaga: Complete Guide to Expenses and Taxes (2026)
Buying a home in Málaga or on the Costa del Sol in 2026 involves, in addition to the purchase price, between 8% and 13% in additional expenses for taxes, notary, registration, and management fees. For a second-hand home priced at €200,000, the total expenses amount to around €16,000 – €18,000. For new construction of the same value, the figure rises to €24,000 – €27,000. Below we break down each item with updated figures for 2026.
1. Taxes: the most important item
The main tax depends on whether the property is second-hand or new construction:
Second-hand property → ITP (Property Transfer Tax)
In Andalusia, the general rate of ITP is 7% on the cadastral reference value or the purchase price (the higher of the two applies).
Buyer's situation | ITP Rate | Value limit | Requirements |
|---|---|---|---|
General | 7% | No limit | — |
Primary residence < 150,000 € | 6% | 150,000 € | Used as main residence |
Youths (< 35 years) | 3.5% | 150,000 € | Primary residence |
Large families | 3.5% | 250,000 € | Primary residence |
People with disabilities (≥ 33%) | 3.5% | 250,000 € | Primary residence |
Practical example: If you are 30 years old and buy your first primary residence for €140,000, you would pay 3.5% in ITP = €4,900 instead of the €9,800 at the general rate. A savings of almost €5,000.
New construction housing → VAT + AJD
If you buy directly from the developer (first transfer), you do not pay ITP but VAT plus the Documented Legal Acts Tax (AJD):
Concept | Rate | Notes |
|---|---|---|
VAT | 10% | Standard housing |
Reduced VAT | 4% | Officially protected housing (VPO) |
AJD in Andalusia | 1.2% | General rate |
Reduced AJD | 0.3% | Young people < 35 years (main residence ≤ €150,000) |
Reduced AJD | 0.1% | Large families / disability (≤ €250,000) |
Important: Garages and storage rooms sold together with the home (maximum 2 spaces) are taxed at the same 10% VAT. If purchased separately, the VAT increases to 21%.
2. Notary, registration, and management fees
In addition to taxes, there are three fixed costs regulated by law:
Concept | Usual cost | % of price |
|---|---|---|
Notary (notarial fees) | 600 – 1,000 € | 0.2% – 0.5% |
Property Registry | 400 – 700 € | 0.1% – 0.25% |
Management | 300 – 500 € | — |
Total fixed expenses | 1,300 – 2,200 € | — |
Notary and registry fees are regulated by the State and are calculated using official scales based on the value of the property, so they are similar throughout Spain.
3. How much does it cost in total? Examples by housing price
Second hand (ITP at 7%)
Property Price | ITP (7%) | Notary | Registry | Management | Total Expenses | % of Price |
|---|---|---|---|---|---|---|
100,000 € | 7,000 € | 600 € | 400 € | 350 € | 8,350 € | 8.4% |
150,000 € | 10,500 € | 700 € | 450 € | 400 € | 12,050 € | 8.0% |
200,000 € | 14,000 € | 800 € | 500 € | 400 € | 15,700 € | 7.9% |
300,000 € | 21,000 € | 900 € | 600 € | 450 € | 22,950 € | 7.7% |
€500,000 | €35,000 | €1,000 | €700 | €500 | €37,200 | 7.4% |
New construction (VAT 10% + AJD 1.2%)
Property price | VAT (10%) | AJD (1.2%) | Notary | Registry | Management | Total expenses | % of price |
|---|---|---|---|---|---|---|---|
150,000 € | 15,000 € | 1,800 € | 700 € | 450 € | 400 € | 18,350 € | 12.2% |
200,000 € | 20,000 € | 2,400 € | 800 € | 500 € | 400 € | 24,100 € | 12.1% |
300,000 € | 30,000 € | 3,600 € | 900 € | 600 € | 450 € | 35,550 € | 11.9% |
500,000 € | 50,000 € | 6,000 € | 1,000 € | 700 € | 500 € | 58,200 € | 11.6% |
4. If you need a mortgage: additional costs
Since the Mortgage Law of 2019, the bank assumes the notary, registration, management, and AJD costs of the mortgage deed. The buyer only pays:
Concept | Cost | Who pays |
|---|---|---|
Property appraisal | 250 – 600 € | Buyer |
Opening fee | 0% – 1.5% of the loan | Buyer (many banks apply 0%) |
Mortgage notary | Variable | The bank |
Mortgage registration | Variable | The bank |
AJD of the mortgage | Variable | The bank |
How much do you need to save? Banks typically finance up to 80% of the appraised value. This means you will need to have saved at least 20% for the down payment + 8-13% for expenses, that is, between 28% and 33% of the property price. For an apartment priced at €200,000, you will need approximately between €56,000 and €66,000 in savings.
5. Municipal capital gains tax: who pays it?
The municipal capital gains tax (Tax on the Increase in Value of Urban Land) is paid by the seller, as they are the one benefiting from the appreciation of the land. In Málaga, the deadline to settle it is 30 business days from the signing of the deed.
Important exceptions:
If the seller is a non-resident in Spain, the buyer becomes the substitute taxpayer and must withhold/pay this tax.
If the sale is made at a loss (without profit), the capital gains tax is exempt. This must be accredited before Gestrisam (Málaga City Council).
6. Average prices by area in Málaga and Costa del Sol (2026)
The real estate market in Málaga remains at historical highs, driven by high international demand and limited new construction supply:
Area | Average price (€/m²) | Profile |
|---|---|---|
Marbella | 5,500 – 6,080 €/m² | Luxury, international market |
Estepona | 4,950 – 5,200 €/m² | Strong growth, quality of life |
Fuengirola | 5,050 – 5,100 €/m² | Established, residential and tourist |
Benalmádena | 3,400 – 4,630 €/m² | Wide range depending on area |
Málaga capital | 3,900 – 4,320 €/m² | Historical highs, high demand |
Torremolinos | 2,200 – 4,370 €/m² | Variable (first line vs interior) |
“The Costa del Sol market maintains very solid demand, especially from international buyers. What we always recommend to our clients is to have a clear understanding of the additional costs before searching for a home, to properly adjust the budget and avoid surprises.” — José Carlos Delgado, Director of Gelabert Homes Real Estate
7. Legal updates you should know (2025-2026)
Mandatory registration of real estate agents (Law 5/2025, effective from January 24, 2026): The Junta de Andalucía has created a mandatory public registry to ensure the professionalism of the sector and consumer protection.
VPO with more controls: The sale of officially protected homes now requires prior administrative authorization. Without it, the sale may be declared null and void.
ITP of 2% for professional investors: Those who buy to resell now have a cap of €500,000 and must resell within a maximum of 2 years (previously it was 5).
Frequently Asked Questions
Can I deduct purchase expenses on my tax return? Not directly. Notary, registration, and tax expenses are part of the "acquisition value" of the property, which is only taken into account when you sell the property to calculate capital gains.
Is the ITP calculated on the price I pay or on the cadastral value? It is applied to the higher of the two: the price declared in the deed or the reference cadastral value published by the General Directorate of the Cadastre.
Can I negotiate notary fees? Notary fees are regulated by law (Royal Decree 1426/1989), but the notary can apply a discount of up to 10% on their fees. It’s worth asking.
What happens if I am a foreigner and want to buy in Málaga? You will need to obtain a NIE (Foreigner Identification Number), open a bank account in Spain, and have legal advice. The taxes and expenses are the same as for Spanish residents. At Gelabert Homes, we accompany you throughout the process.
How much does a real estate agency charge for its services? In Málaga, the agency commission is usually paid by the seller, not the buyer. It typically ranges between 3% and 5% of the sale price.
Are you thinking about buying in Málaga or the Costa del Sol? At Gelabert Homes, we provide transparent advice on all the actual costs. Contact us or request a free valuation.