What are the costs of buying a property in Spain?

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If you are interested in purchasing a house in Spain, you need to take into account all of the costs involved.

Who and what must you pay?

The Seller. Obviously, you will have to pay the purchase price. If the seller is not a Spanish resident, then 3% of the sale price of the property will be retained to pay the Tax Office, and rest of the price (97%) to the seller.
Notary Fees. Normally, this is paid by the buyer, but this can be negotiated. Notary fees depend on the purchase price. They could ascend to approximately 0.5% of the purchase price.
Land Registry Fees. They are paid by the buyer in order to inscribe the property at the Land Registry in their name. Land Registry fees are approximately 0.4% of the purchase price.
Transmission Tax or VAT + Stamp Tax. In the Valencia Region (including The Costa Blanca) this ascends to 10% of the purchase price. If it is a new property, then 10% VAT plus Stamp Tax, which is 1,5% of the price, is paid, and you do not pay transmission Tax.
Lawyer Fees. Lawyers fees could ascend to 1% plus VAT of the purchase price, or between 1500€ to 3000€, but this really depends on the value and complexities.
Mortgage Costs. This will include a valuation, which will cost approximately 400€ plus Notary & Land Registry Fees of the mortgage deed.
Municipal Tax on Increase in Value of Land in Urban Nature. This should be paid by the vendor. The rate depends on the period of ownership and the town or city where the property is located.
Property Ownership Tax (IBI). This is the local tax which is paid annually and based on the cadastral value (valor catastral).
Wealth Tax. Payable annually, based on the value of total net assets as of 31st December of each year after the free allowance of 700.000€.