Hello to all the newcomers in Spain! I’ve seen many people on the forum asking, so today I’m starting a thread to discuss one of the most common topics: How much money do you really need to buy a house and a car in Spain? This is actually a big question, as there are significant differences across Spain. Madrid and a small village in the south are two completely different worlds. This post is meant to get the ball rolling by sharing some basic concepts and general budget ranges, based on my experience with buying a house and car in Spain.
How Much Does It Cost to Buy a House in Spain?
Buying a house is definitely a major undertaking. Property prices mainly depend on the location. In the city centers of Madrid and Barcelona, a good apartment might cost €4,000-€7,000 per square meter (and don’t forget the various Spanish taxes). However, in other major cities like Valencia or Seville, you can find a nice place for €2,000-€3,500. If you go further south or to smaller inland towns, there are many properties for just over €1,000 per square meter.
Besides the property price itself, don’t forget a bunch of additional fees, which account for about 10%-15% of the price. You definitely can’t overlook these! The table below lists some of the main expenses. Note that the taxes for new properties and resale properties are different.
Main Property Purchase Taxes and Fees
| Fee/Tax Item | New Property | Resale Property |
|---|
| VAT (IVA) | 10% | N/A |
| Stamp Duty (AJD) | 1.5% - 2% | N/A |
| Transfer Tax (ITP) | N/A | 6% - 10% |
| Notary and Registry Fees | 0.5% - 1% | 0.5% - 1% |
| Lawyer/Gestoría Fees | Approx. 1% | Approx. 1% |
What About Buying a Car in Spain?
Buying a car is much easier. Unless you’re particularly wealthy or set on a brand-new car, most people opt for a used one, as the market is very mature. A 3 to 5-year-old Volkswagen Golf or SEAT Ibiza in good condition will cost roughly between €8,000 and €15,000. If your budget is lower, you can find a decent runabout that will last a few years for around €5,000. The running costs aren’t too high either. Annual insurance is about €300-€600, road tax (IVTM) is a few dozen to over a hundred euros, and the biennial or annual vehicle inspection (ITV) is only about €50.
The cost of living in Spain is really not that high for Europe. Buying a house depends on your budget, and buying a car is even more straightforward. Of course, these figures are based on my personal experience and observations, so there are bound to be some inaccuracies. Please feel free to reply below to add your own insights and share the current market situation in your city to give newcomers a more accurate reference! After all, helping each other is what forums are all about!
