Taxes and costs when buying a home in Galicia: Complete guide 2026

Plan Your Investment: The Real Cost of Buying a Home in Galicia

Buying a home is one of the most significant financial decisions you will ever make. In Galicia, beyond the purchase price, you should budget an additional 10% to 12% to cover taxes, notary fees, registry costs, and administrative processing. Understanding these costs upfront allows you to plan your investment without surprises.

This comprehensive guide for 2026 breaks down every cost category with real examples, current tax rates, and practical money-saving tips. Whether you are a first-time buyer, an investor, or a foreign buyer looking at the beautiful Costa da Morte, here is everything you need to know.

1. ITP (Property Transfer Tax) for Resale Homes

The Impuesto de Transmisiones Patrimoniales (ITP) applies to all resale property purchases. In Galicia, the current rates are:

• General rate: 9% — Applies to most resale property transactions.
• Reduced rate: 7% — Available for buyers under 36 years old, large families (3+ children), or persons with disabilities (33% or greater), provided the property will be your primary residence.
• Super-reduced rate: 3% — For properties located in Zonas de Poca Población (Low Population Zones), defined as municipalities with fewer than 3,000 inhabitants or population centers with fewer than 1,000. Many Costa da Morte towns such as Camariñas, Laxe, Muxía, and Zas qualify for this rate! Also available for certain vulnerable groups.

Practical example: For a property priced at €150,000:

• General ITP (9%): €13,500
• Reduced ITP (7%): €10,500
• Super-reduced ITP (3%): €4,500

The difference between the general and super-reduced rate is €9,000. Checking whether your target municipality qualifies as a Low Population Zone could save you a significant amount.

2. VAT + Stamp Duty for New-Build Homes

If you are purchasing a newly constructed property, a different tax regime applies:

• VAT (IVA): 10% of the sale price.
• Stamp Duty (IAJD): 1.5% in Galicia.
• Total: 11.5% of the sale price for new builds.

Practical example: For a new-build property priced at €200,000:

• VAT (10%): €20,000
• Stamp Duty (1.5%): €3,000
• Total taxes: €23,000

3. Notary Fees (Aranceles Notariales)

Notary fees in Spain are regulated by law under Decreto 1426/1989 and are not negotiable. They vary based on the property price and deed complexity:

• Typical range: €600 - €1,200
• For a €150,000 property: approximately €850
• For a €250,000 property: approximately €1,050

What does the notary do? The notary verifies the identity of all parties, ensures the legality of the transaction, confirms the property is free of encumbrances, and reads the deed aloud before all parties. Their role is to guarantee legal certainty for both buyer and seller.

4. Property Registry (Registro de la Propiedad)

Registering the deed at the Property Registry is essential for your legal protection:

• Typical range: €400 - €800
• For a €150,000 property: approximately €550

Why is registration essential? It protects you against third-party claims. If someone attempts to assert rights over your property, the registry provides public faith and legal priority. Without registration, you could face situations such as double sales or hidden charges on the property.

5. Gestoría (Administrative Processing)

A gestoría handles all the bureaucratic paperwork after signing:

• Typical range: €300 - €500

Their responsibilities include: settling the ITP at the Galician Tax Authority, filing the deed at the Property Registry, processing payment receipts, and coordinating with the notary. When working with Cristina Casas Galiza, this process is supervised at no additional cost, ensuring everything is processed correctly and all applicable discounts are applied.

6. Mortgage Costs (If Applicable)

If you require financing, factor in these additional costs:

• Property appraisal (tasación): €250 - €500. The bank requires an official valuation to approve the mortgage.
• Notary (mortgage deed): €500 - €1,000. A separate deed is required for the mortgage.
• Mortgage registration: €200 - €400. Registration of the mortgage charge.
• Mortgage gestoría: €200 - €400.
• Opening commission: 0% - 1% of the loan amount. Many banks now offer 0%.
• Stamp Duty on mortgage (IAJD): 1.5% of the mortgage amount. Some banks cover this cost.

Important note: Since the Spanish Supreme Court ruling in 2018, banks must cover certain mortgage expenses generated for their benefit (appraisal, stamp duty, and registration). However, practice varies between institutions. Always negotiate these terms.

7. Annual Taxes After Purchase

As a property owner, you will need to budget for these recurring costs:

• IBI (Property Tax): €200 - €800/year, depending on the cadastral value and municipality. Smaller Costa da Morte towns typically have lower IBI than cities.
• Non-Resident Tax (IRNR): 24.75% of imputed income (1.1% - 2% of cadastral value). Only applies if you are not a tax resident in Spain.
• Community fees: €30 - €150/month if the property is in a building with a homeowners' association.
• Home insurance: €250 - €600/year depending on coverage.
• Utilities: €100 - €200/month (electricity, water, gas, internet).

8. Practical Example: Complete Cost Breakdown

Case A — €150,000 resale property (general rate):

• Property price: €150,000
• ITP (9%): €13,500
• Notary: €850
• Registry: €550
• Gestoría: €400
• Total: €165,300 (10.2% extra)

Case B — Same property with reduced ITP (7%):

• ITP (7%): €10,500
• Total: €161,300 (7.5% extra)

Case C — Same property in a Low Population Zone (3%):

• ITP (3%): €4,500
• Total: €152,300 (only 1.5% extra)

As you can see, the difference between the general and super-reduced rate can mean up to €9,000 in savings. Many Costa da Morte municipalities qualify for this super-reduced rate.

9. Costs Specific to Non-Residents

If you are buying from abroad, consider these additional factors:

• NIE (Foreigner Identification Number): Required to sign the deed. No cost, but requires processing at a police station or immigration office.
• Power of Attorney: If buying remotely, you will need to grant power of attorney to your representative in Spain: €100 - €200.
• Currency transfer: Consider bank fees and exchange rates. Using services like Wise or Revolut can save you 2-3% compared to traditional banking.
• Double taxation treaties: Spain has treaties with the UK, Germany, France, and many other countries that prevent you from paying tax twice on the same income.
• Annual IRNR filing: If you are not a tax resident in Spain, you must file the Non-Resident Income Tax return every year.

10. Money-Saving Tips

• Check if your municipality is a Low Population Zone: You could save up to 6% on ITP (from 9% to 3%). Many Costa da Morte towns meet the criteria.
• Negotiate mortgage costs with banks: Push for 0% opening commission and ask the bank to cover the appraisal and stamp duty.
• Use a gestoría recommended by your real estate agent: They know the local market and can expedite the process.
• Compare mortgage offers: Mortgage subrogation (switching banks) is now free. If you find better terms after signing, you can change banks at no cost.
• Apply for all available discounts: Large family certificates, disability documentation, or proof of registration in a rural area. Every document helps.

Need a Personalized Calculation?

Every purchase is unique, and costs vary depending on the property type, your personal situation, and the municipality. Contact Cristina Vázquez for a detailed, no-obligation cost breakdown tailored to your specific case. We will help you identify every available discount and optimize your investment on the Costa da Morte.