The costs for setting up a mortgage and buying a property pay for two separate types of taxes and fees.
The first and most important is the property related taxes. The property tax in Spain spans from 6 to 11% depending on the region and depending on the price of the property. As far as costs go, the property tax called ITP (IVA and AJD when we are talking new builds) represent the vast majority of the total cost involved.
The remainder is split into three parts namely the “gestoría”, the registry and the notary.
On the mortgage side, you only pay the valuation and the opening fee.
On the property side, you pay the registry the notary the gestoria the ITP for second hand homes and IVA and AJD when it’s a new build.