Spain or England (2026): where does buying a home cost more?
For a resident buying their main home, England's stamp duty is a smaller share of the price than Spain's transfer tax, because England's bands start at 0% while Spanish regions charge 6% to 10% or more from the first euro. A buyer who already owns a home anywhere pays 5% extra in England from the first pound, so a second home in England can cost more than one in Madrid or Andalusia. New builds cost more in Spain, where they pay 10% VAT.
Key facts
- England: SDLT in bands from 0% to 12%; Spain: transfer tax (ITP) from 6% in Madrid to 10% and more in Catalonia on resales.
- England adds 5% of the price for a buyer who will own another home anywhere in the world; Spain has no such surcharge.
- England adds 2% for a non-resident buyer; Spain charges residents and non-residents the same.
- A new build in Spain pays 10% VAT plus a regional stamp duty; in England it pays the same SDLT as a resale.
- Pounds and euros are never converted here: the comparison uses the share of the price paid.
Is it cheaper to buy a home in Spain or England?
For a buyer who lives in the country and is buying their main home, England takes a smaller share of the price in tax at most prices. The two countries tax a purchase in different ways:
| England | Spain | |
|---|---|---|
| Main tax on a resale | Stamp Duty Land Tax (SDLT), in bands starting at 0% | Transfer tax (ITP), set by each region, from the first euro |
| Main tax on a new build | The same SDLT | VAT at 10% plus a regional stamp duty (AJD) |
| Buyer who owns another home | 5% of the price on top | No surcharge |
| Non-resident buyer | 2% of the price on top | No surcharge |
| First-time buyers | Relief up to £500,000 | Some regions have young-buyer rates |
How are pounds and euros compared?
By the share of the price, never by converting. £300,000 and €300,000 are not the same amount of money, and an exchange rate would date the page. Each table below shows each country at its own prices, in its own currency, with the share of the price in the last column. Where the shares are far apart, the answer holds whatever the exchange rate.
Which is cheaper for a main home?
England’s tax starts at zero and rises slowly. Spain’s transfer tax is a flat or near-flat rate from the first euro: 6% in Madrid, 7% in Andalusia, 9% in Valencia and from 10% in Catalonia, with reductions for some main homes.
| Price | Taxes | Fees, typical | Total on top | Estimate range | Share of price |
|---|---|---|---|---|---|
| £150,000 | £500 | £1,450 | £1,950 | £1,350 to £2,550 | 1.30% |
| £250,000 | £2,500 | £1,500 | £4,000 | £3,400 to £4,600 | 1.60% |
| £400,000 | £10,000 | £1,500 | £11,500 | £10,900 to £12,100 | 2.88% |
| £600,000 | £20,000 | £1,645 | £21,645 | £21,045 to £22,245 | 3.61% |
| £1,000,000 | £43,750 | £1,645 | £45,395 | £44,795 to £45,995 | 4.54% |
| Price | Taxes | Fees, typical | Total on top | Estimate range | Share of price |
|---|---|---|---|---|---|
| €150,000 | €8,100 | €2,596.68 | €10,696.68 | €9,696.68 to €12,046.68 | 7.13% |
| €250,000 | €13,500 | €3,631.29 | €17,131.29 | €15,581.29 to €18,981.29 | 6.85% |
| €400,000 | €24,000 | €5,183.02 | €29,183.02 | €26,883.02 to €31,783.02 | 7.30% |
| €600,000 | €36,000 | €7,251.99 | €43,251.99 | €39,951.99 to €46,851.99 | 7.21% |
| €1,000,000 | €60,000 | €11,344.07 | €71,344.07 | €66,044.07 to €76,944.07 | 7.13% |
| Price | Taxes | Fees, typical | Total on top | Estimate range | Share of price |
|---|---|---|---|---|---|
| €150,000 | €9,000 | €2,596.68 | €11,596.68 | €10,596.68 to €12,946.68 | 7.73% |
| €250,000 | €17,500 | €3,631.29 | €21,131.29 | €19,581.29 to €22,981.29 | 8.45% |
| €400,000 | €28,000 | €5,183.02 | €33,183.02 | €30,883.02 to €35,783.02 | 8.30% |
| €600,000 | €42,000 | €7,251.99 | €49,251.99 | €45,951.99 to €52,851.99 | 8.21% |
| €1,000,000 | €70,000 | €11,344.07 | €81,344.07 | €76,044.07 to €86,944.07 | 8.13% |
England’s share stays well below Spain’s at every price in these tables, so the result does not depend on the exchange rate. Only at the top of the market do England’s 10% and 12% bands push its share past Madrid’s flat rate:
| Place | Buyer | Currency | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|---|
| Spain, Madrid | Resale, main home, price €2,000,000 | EUR | €120,000 | €21,573.97 | €141,573.97€131,273.97 to €152,173.97 | 7.08% |
| England | Main home, tax-resident, no other home, price £2,000,000 | GBP | £153,750 | £1,850 | £155,600£155,000 to £156,200 | 7.78% |
Which is cheaper for a second home?
This is where the answer turns. A buyer who will own another home anywhere in the world pays England’s higher rates: 5% of the whole price on top of the bands. That applies from the first pound, so even a cheap second home in England carries a large share in tax. Spain has no surcharge for owning another home.
| Price | Taxes | Fees, typical | Total on top | Estimate range | Share of price |
|---|---|---|---|---|---|
| £150,000 | £8,000 | £1,450 | £9,450 | £8,850 to £10,050 | 6.30% |
| £250,000 | £15,000 | £1,500 | £16,500 | £15,900 to £17,100 | 6.60% |
| £400,000 | £30,000 | £1,500 | £31,500 | £30,900 to £32,100 | 7.88% |
| £600,000 | £50,000 | £1,645 | £51,645 | £51,045 to £52,245 | 8.61% |
| £1,000,000 | £93,750 | £1,645 | £95,395 | £94,795 to £95,995 | 9.54% |
| Price | Taxes | Fees, typical | Total on top | Estimate range | Share of price |
|---|---|---|---|---|---|
| €150,000 | €9,000 | €2,596.68 | €11,596.68 | €10,596.68 to €12,946.68 | 7.73% |
| €250,000 | €15,000 | €3,631.29 | €18,631.29 | €17,081.29 to €20,481.29 | 7.45% |
| €400,000 | €24,000 | €5,183.02 | €29,183.02 | €26,883.02 to €31,783.02 | 7.30% |
| €600,000 | €36,000 | €7,251.99 | €43,251.99 | €39,951.99 to €46,851.99 | 7.21% |
| €1,000,000 | €60,000 | €11,344.07 | €71,344.07 | €66,044.07 to €76,944.07 | 7.13% |
| Price | Taxes | Fees, typical | Total on top | Estimate range | Share of price |
|---|---|---|---|---|---|
| €150,000 | €10,500 | €2,596.68 | €13,096.68 | €12,096.68 to €14,446.68 | 8.73% |
| €250,000 | €17,500 | €3,631.29 | €21,131.29 | €19,581.29 to €22,981.29 | 8.45% |
| €400,000 | €28,000 | €5,183.02 | €33,183.02 | €30,883.02 to €35,783.02 | 8.30% |
| €600,000 | €42,000 | €7,251.99 | €49,251.99 | €45,951.99 to €52,851.99 | 8.21% |
| €1,000,000 | €70,000 | €11,344.07 | €81,344.07 | €76,044.07 to €86,944.07 | 8.13% |
On cheaper homes England’s share is below Madrid’s and Andalusia’s; as the price rises it passes them. Catalonia and Valencia start higher:
| Place | Buyer | Currency | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|---|
| Spain, Catalonia | Resale, price €400,000 | EUR | €40,000 | €5,183.02 | €45,183.02€42,883.02 to €47,783.02 | 11.30% |
| Spain, Valencian Community | Resale, second home, price €400,000 | EUR | €36,000 | €5,183.02 | €41,183.02€38,883.02 to €43,783.02 | 10.30% |
| England | Second home, tax-resident, owns another home, price £400,000 | GBP | £30,000 | £1,500 | £31,500£30,900 to £32,100 | 7.88% |
The English rule also works the other way: a buyer who owns a home in Spain and buys in England pays the higher rates there, because the law counts homes outside England (Finance Act 2003, Schedule 4ZA, paragraph 17), unless the English home replaces their main home.
Which is cheaper for a non-resident?
England charges a non-resident 2% of the price on top, refundable if the buyer then spends 183 days in the UK within the time allowed. Spain charges residents and non-residents the same rates. A non-resident buying a second home while owning another:
| Place | Buyer | Currency | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|---|
| Spain, Madrid | Resale, second home, price €300,000 | EUR | €18,000 | €4,148.54 | €22,148.54€20,348.54 to €24,248.54 | 7.38% |
| Spain, Andalusia | Resale, second home, price €300,000 | EUR | €21,000 | €4,148.54 | €25,148.54€23,348.54 to €27,248.54 | 8.38% |
| England | Second home, not tax-resident, owns another home, price £300,000 | GBP | £26,000 | £1,500 | £27,500£26,900 to £28,100 | 9.17% |
See the non-resident surcharge in England and buying in Spain as a non-resident.
Which is cheaper for a new build?
England. A new home in England is sold without VAT (HMRC VAT Notice 708, section 4) and pays the same SDLT as an older one. In Spain a new home from the developer pays 10% VAT plus the region’s stamp duty instead of transfer tax:
| Place | Buyer | Currency | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|---|
| Spain, Madrid | New build, main home, price €350,000 | EUR | €37,625 | €4,665.78 | €42,290.78€40,240.78 to €44,640.78 | 12.08% |
| Spain, Andalusia | New build, main home, price €350,000 | EUR | €39,200 | €4,665.78 | €43,865.78€41,815.78 to €46,215.78 | 12.53% |
| England | Main home, tax-resident, no other home, price £350,000 | GBP | £7,500 | £1,500 | £9,000£8,400 to £9,600 | 2.57% |
What this comparison does not cover
- Exchange rates and the cost of moving money between pounds and euros.
- Scotland, Wales and Spanish regions other than the four in the calculator.
- Annual property taxes, income tax on rent, capital gains tax and mortgage costs.
- Spanish regional reductions that depend on income, family size or disability.
Questions people ask
Is it cheaper to buy a house in Spain or England?
For a resident buying a main home, England takes a smaller share of the price in tax at most prices: its bands start at 0%, while Spain's regional transfer tax is 6% to 10% or more from the first euro. At very high prices England's top bands can overtake Madrid's flat 6%.
Is it cheaper to buy a second home in Spain or the UK?
It depends on the price and the region. In England a buyer who already owns a home pays 5% of the price on top of stamp duty, so the share is high even on cheap homes. Madrid charges a flat 6% and Andalusia 7%, which can come out lower. Catalonia and Valencia usually stay dearer than England.
Do British buyers pay extra tax when buying in Spain?
No. Spain's purchase taxes are the same for residents and non-residents and do not depend on nationality. Some regional reductions need the home to be the buyer's main home.
Do I pay the 5% in England if I own a home in Spain?
Yes, if it is worth £40,000 or more and you still own it at the end of the completion day, unless the home in England replaces it as your main home. The English rules count homes anywhere in the world.
How do you compare costs in pounds and euros?
By the share of the price paid in tax and fees. A £300,000 home and a €300,000 home are not the same amount of money, so this site shows each country at its own prices and compares the percentages, without an exchange rate.
Sources
- Stamp Duty Land Tax: residential property ratesGOV.UK (HM Revenue and Customs)
- Stamp Duty Land Tax: buying an additional residential propertyGOV.UK (HM Revenue and Customs)
- VAT Notice 708: buildings and construction, section 4 (zero rated sale of new homes)GOV.UK (HM Revenue and Customs)
- Real Decreto Legislativo 1/1993, Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos DocumentadosBoletín Oficial del Estado (Spain)
- Ley 37/1992, del Impuesto sobre el Valor Añadido (VAT on new homes)Boletín Oficial del Estado (Spain)
Behind the figures
Every amount on this page is worked out by the engine from rule files that cite these pages.
- Agència Tributària de Catalunya: ITP ratesOfficial source
- Which?: Conveyancing, what it is and what it costs (29 May 2026)Secondary source
- The Land Registration Fee Order 2024 (SI 2024/931)Official source
- GOV.UK: Stamp Duty Land Tax, residential property ratesOfficial source