What are the costs involved in buying a home?


Are you going to buy a house? If you are looking for a house, to the price you agree with the real estate agent, you will have to add a series of expenses. It is important that you take them into account because, otherwise, the final outlay may be out of your budget. Let’s take a look at the total costs of buying a home.

The costs of buying a home that you should bear

First of all, here are the purchase costs that the buyer must assume when acquiring a property:

Simple note

The nota simple is used to check if the property is free of encumbrances. Its application is not mandatory, but it is one of the most important expenses when buying a home if you want to avoid complications in the future. There are several companies through which you can request a nota simple online and its price is around 20€.


Appraisal fees are essential. The appraisal consists of a professional valuation of the property. There are specialized companies to which you can turn to appraise any property, such as Tinsa, or Euroval, although banks often include the price of the appraisal among their management fees when taking out a mortgage. To give you an idea, this amount can be around 500€ for a 90 m² apartment.


It is time to talk about taxes. Let’s see what weight they have in the total expenses we must consider when buying a home:

  • Transfer Tax (ITP). This is a tax that is only paid when it is a second-hand property. This is a percentage applied to the price that appears in the deed and also depends on the autonomous community. However, it is almost always between 6 and 10%, with some exceptions where it may be reduced, such as in the case of large families or subsidized housing.
  • Value Added Tax (VAT). VAT is payable only when buying a new home and its value is 10% of the amount of the transaction, except for subsidized housing, which will be 4%.

Land Registry

Land registry fees are actually borne by the bank when a mortgage is taken out for the purchase of the property and represent between 0.1 and 0.3% of the mortgage liability. However, the buyer will be responsible if he does not acquire a mortgage loan and in this case its value usually ranges between 24.04 and 100€, depending on the price of the property, according to the rates governed by Royal Decree 1427/1989.

Mortgage origination fees

The origination fee is an expense that you must assume if you take out a mortgage with a bank. This commission is paid only once and includes all the expenses that the entity may claim for the study, processing and granting of the loan. Its value ranges from 0.5 to 1% for variable-rate mortgages and can reach 3% for fixed-rate mortgages.

Home insurance

The contracting of a home insurance is mandatory in the event that you acquire a mortgage, including at least the basic coverage. Although, in reality it is a contract that brings great benefits when you buy or rent any type of housing and more when it comes to the purchase of a second hand one, because they have a greater risk of unforeseen events in the future.


In addition to the costs of buying a home, other costs can be added. If the property you have bought is second hand, it is very likely that it needs a renovation to move in and even more if you want a sustainable housing. This expense can vary considerably, depending on the condition of your home, your aspirations and the budget of the renovation company in question. In addition, it should be noted that kitchen and bathroom renovations tend to have a higher price tag.

Expenses that are the bank’s responsibility when buying a home

Watch out! There are a series of expenses that traditionally passed on to the buyer with the purchase of a house or apartment when taking out a mortgage. However, since the entry into force of Law 5/2019, the legal text makes it clear that such expenses must be assumed by the corresponding banking entity. It is important that you also know them:


Notary fees are paid by the bank. They can usually reach 800€, depending on the value of the property. These are notaries’ fees and the cost is regulated by the State. However, if the client requests a copy of the deed, he/she will have to assume the cost, which is usually around 20€.


The agency fees are not mandatory and correspond to a service that is usually contracted only in the case of acquiring a mortgage in order to process the corresponding paperwork. The banks are responsible for hiring a management company that charges them around 300€.

Documented legal acts (IAJD)

This expense is a tax corresponding to the use of notary and registry services. Its value depends on each autonomous community, although it is usually between 0.5% and 1.5% of the amount of the purchase-sale.

To conclude, let’s look at an example: the purchase of a second-hand home through an associated fixed-rate mortgage loan.

Price of the house100.000,00€
Fixed costs540,00€
Arrangement fee (3%)3.000,00€
Home insuranceAccording to choice

In this case, the expenses are around 540€ fixed. On the other hand, supposing that the price of the property is 100.000 € and that the ITP in your autonomous community is 8%, you would have to pay 8.000 € more taxes. To this must be added a 3% origination fee, which for this example would be €3,000. Thus, the total expenses associated with the purchase of the home would amount to about 11,540 euros. And, as we have explained, to this figure you would have to add the price of the insurance and the renovation, which will depend mainly on the state of the house and your preferences.

Do you get the math? Check these numbers before you close the deal!