What hidden costs should I expect when buying property on the Costa del Sol?

When investing in Costa del Sol real estate, it's crucial to budget beyond the sticker price. One significant hidden cost is **property transfer tax (ITP)**, which can range from 7% to 10% depending on the property's value and region in Andalusia. For new constructions, you'll pay **VAT (IVA)** at 10% instead of ITP, plus an additional 1.5% for **stamp duty (AJD)**. These taxes alone can significantly increase your initial outlay. Secondly, don't forget **legal fees and notary costs**. Engaging a local solicitor is highly recommended for due diligence, contract review, and managing the purchase process. These fees typically account for 1-2% of the property purchase price. Notary fees, though regulated, are also an essential expense for signing the public deed of sale. Ongoing costs are another often-overlooked area. **Annual property taxes (IBI)**, similar to council tax, vary by municipality and property value. You'll also have **community fees** if buying in an urbanisation or apartment complex, covering maintenance of shared areas like pools and gardens, which can range from tens to hundreds of euros monthly. Additionally, **utility connections** and potentially **residency application fees** (if you're not an EU citizen and plan to live there) can add up. Finally, consider **currency exchange rate fluctuations** if you're transferring funds from a non-Euro account, as these can impact the final cost significantly.