The real cost of buying an apartment in Madrid

Read this article to learn the different costs associated with buying an apartment in Madrid and how they are allocated.


As a general rule, you can expect to add 10.5% to 11.5% to the total purchase price of your second hand apartment in Madrid. These costs are incurred during the processes of due diligence and negotiation, in addition to traditional closing costs. There are three types of additional costs:

  1. Taxes
  2. Legal and administrative fees
  3. Commissions
apartment in Madrid

What is the final amount of money you will need to buy this apartment for sale in La Latina?

1– Taxes: Between 6 and 10% of purchase price

Most of these taxes are for VAT, or its equivalent. If you buy a new build property, you must pay 10% in IVA (Spanish VAT) for a new build property. If you buy a second hand apartment in Madrid, you must pay a 6% property transfer tax (ITP). This is the lowest ITP assessed in Spain. It is 7% – 11% in other regions, such as Valencia or Barcelona.

If you buy a new build property, you must also pay stamp tax (IAJD, Impuestos de Actos Juridicos Documentados). This covers the legal work the local government must do to add the property to the land registry. These are anywhere between 0.3% and 0.7%. To learn how the rate is calculated, read: Why you need a tax expert when buying a property in Madrid.

If you want a tax estimate specific to your situation, book a FREE CONSULTATION TODAY.

2–Legal and administrative fees: 2,150-6,050€

This covers the work to be done by the following professionals:


This is a professional that helps one navigate the Spanish bureaucracy. They also undertake a number of functions that are performed by accountants. Because the Spanish bureaucracy can be quite intricate, and requires a lot of patience, 95% of Spaniards use them to manage their affairs. You can expect to pay an Gestoría between 1,000-2,000€ to help you purchase your apartment in Madrid.


Notaries have a much bigger role in Mediterranean countries than they do in countries like the UK and the US. The notary is a key figure of traditional Spanish society, along with other important people such as doctors and priests. Spanish notaries enjoy a prestigious position in society, not to mention a privileged revenue stream guaranteed by the law. Their job, during a property purchase, is to ensure that both parties to the transaction understand the terms of the contract, that the terms of the contract do not contravene any laws and to ensure that the appropriate taxes are paid. You can expect to pay them between 800-1500€ to help you purchase your apartment in Madrid.


Although Spanish law does not require you to use a lawyer when you purchase your apartment in Madrid, we strongly recommend you work with one. Typically, Spanish lawyers charge 1% of the final purchase price. For example, to purchase a 500k€ Golden Visa property, this would amount to an additional 5000€.

However, if you work with Moving2Madrid, you can use our special lawyer. They only charge a flat fee of 750€.


If you get a Spanish mortgage to finance your property purchase, they will likely ask a third party to value the property. After the mortgage laws were changed in June, 2019, this was one of the only fees that banks could still pass on to their clients. However, most banks offer very fair rates for this service. Going to the trouble of arranging your own valuation is typically not worth the effort. Valuation fees are usually around 300-500€.

Deed Manager

Hiring a deed manager is optional. However, we recommend using one if you don’t want to deal with all the tax payments directly. They charge 400-600€ for their services.


This is another optional service. However, we strongly recommend you have one examine the property before you agree to purchase it. They can ensure the structural safety of the building and confirm the viability of any refurbishments you are considering. Architects typically charge 500-700€.

apartment in Madrid

It is particularly important to work with an architect if you are buying an older apartment in Madrid and plan to refurbish it.

Moving2Madrid partners with a very experienced architect. They offer our clients a free 45 minute consultation with a senior architect with over 10 years experience in refurbishing apartments for foreign buyers in Madrid. Plus, they offer Moving2Madrid readers up to two pricing quotes for apartments you are interested in. Read How to have a stress free renovation to learn more, and get a link to take advantage of this offer.

Commissions– 3% of purchase price

You will need to pay a commission to the seller’s agent. They are between 0 to 5%, with an average at 3%.


In summary, the professionals you hire will complete the following tasks for you:

  • Obtain your NIE and TIE quickly. These are your Spanish tax number and Spanish identification card. Both are required to purchase a property in Madrid.
  • Check the legal background of your property (making sure no debts are tied to the property and verifying the person selling the apartment really does own the property).
  • Estimate the real value of the apartment for sale.
  • Review the offer and sales contract for the sale of the apartment.
  • Conduct the legal and administrative procedures required to close the deal.

If you need professional help purchasing your property in Madrid, email us today at We can help you get the best deal (so our services pay for themselves) and avoid any potential legal pitfalls.

Posted on 14 December, 2019 by Admin in Costs, New? Start Here


9 responses to “The real cost of buying an apartment in Madrid”

  1. […] You can find details on each of the costs in our article “The real cost of buying an apartment in Madrid“. […]

  2. […] The real cost of buying an apartment in Madrid […]

  3. […] When buying a property in Madrid there are other expenses on top of the purchase price you need to take into account. If you are unfamiliar with these, please check out our article “The real cost of buying an apartment in Madrid”. […]

  4. […] You will find on our site details on current rental and property prices in Madrid  and the real cost of purchasing property in Madrid. […]

  5. maryclare says:

    For a 300k€ apartment, our rule of thumb is to budget 15% more. So plan for 345k€. As for getting your money back . . . our strategy is to buy a property in need of renovation (which is easy to find in Madrid because the apartment stock isn’t up to the quality seen in other cities. In our experience, our clients find that every 1€ spent on renovation yields a 1.5€ return. You also need to take into account overall market pricing trends. For example . . . that same apartment purchased in 2016 would yield an additional 40% return (more or less) in today’s market- pre renovation.

  6. maryclare says:

    Add 15% more to the final purchase price

  7. Peter says:

    Thank you, really nice article. But I would like to understand this. If I’m planning to buy a property in Madrid and let’s say that the list price is 300.000€. To that price I should add all those cost meaning that I would end up paying somewhere around 330.000€? But then after buying if I would put the same property to the market again, the real market price for the property would be still 300.000€. So as an investor, the price / market should go up at least 10% that I would actually get back what I paid originally?

  8. Peter says:

    So what is the real cost?

  9. […] article, the purchase price numbers we give are “all-in.” Meaning, they include all closing costs and refurbishment costs. For Moving2Madrid clients, closing costs typically amount to 10.5-11.5% of […]

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