How to Save Money Buying Property in Spain

Bank repossessed homes in Spain are often 15 - 20% below market value because banks want to sell quickly. Many Spanish banks list these properties on their portals and may even offer better mortgage terms for repossessed homes, making them a good way to save.

In 2025, the property transfer tax (ITP) for resale homes in Spain ranges from 4% to 13% depending on the region. Basque Country offers the lowest rate at 4%, Madrid and Navarra are 6%, Andalusia 7%, Murcia 8%, Valencia 10 - 11%, and Catalonia applies a progressive tax up to 13% for properties over €1.5M.

Yes. Off‑plan property deals in Spain (obra nueva) let you secure a lower price before completion, often saving 10 - 15% compared to finished homes. Developers also offer flexible payment plans, and once the building is completed, the value usually increases, creating instant equity.

The cheapest regions to buy property in Spain are usually Murcia, Extremadura, Castilla‑La Mancha, and parts of Andalusia. They offer lower average prices and lower ITP tax rates compared to expensive areas like Barcelona or Madrid. Basque Country also has a low property tax of just 4%.

When buying property in Spain you’ll pay notary fees, registration costs, legal fees, and property transfer tax (ITP). Banks may also add mortgage arrangement fees and insurance bundles. To reduce these costs, compare bank offers, use fintech for transfers, and hire an independent lawyer.