Mortgage costs: who pays each one

Before signing a mortgage in Spain it is worth knowing exactly what costs it carries and who pays each one. Since Spain's Law 5/2019, the split changed radically: the bank takes on most of the setup costs and the client is left with only a few. This guide explains that legal split, what governs each item, and what happens with mortgages signed before the law.

The change brought by Law 5/2019

Spain's Law 5/2019 of 15 March, governing real estate credit agreements (LCCI), in force since 16 June 2019, set out in its Article 14 who pays each mortgage setup cost. Until then, bank contracts shifted almost all of those costs onto the client through clauses the courts eventually declared unfair. After the law, the split became clear and is mandatory.

Summary table: who pays each cost

AJD: the tax the bank pays

The AJD (Impuesto de Actos Jurídicos Documentados, stamp duty on documented legal acts) is one of a mortgage's setup costs. Since Royal Decree-law 17/2018 (in force on 10 November 2018), the taxpayer on mortgage loan deeds is the lender, that is, the bank. Previously the client paid it, and it was precisely the controversy over this tax that triggered the legal change.

The AJD is not calculated on the loan capital but on the total mortgage liability (capital + interest + guaranteed costs), a figure higher than the capital lent. The rate is set by each autonomous region, so it varies from one to another. Because that rate depends on the region's applicable legislation — which changes — and on the specific case (for mortgages the rate that applies is the one set for when the lender is the taxpayer, which in some regions differs from the general rate for notarial documents), the exact figure must be checked with your regional tax authority. (Reductions for young people, large families or people with disabilities usually apply to the tax on the purchase of the home, not to the loan deed, whose taxpayer is the bank.)

What each amount depends on

This guide does not state specific prices: they change and are not a stable figure. What is stable is how each one is determined and who to ask:

The valuation: the cost that is still yours

The property valuation (tasación) is the only setup cost that Law 5/2019 keeps expressly on the client. It is required for the bank to grant the mortgage and must be carried out by a firm approved by the Bank of Spain, and the valuation is valid for 6 months: after that it expires and would have to be repeated. Although the client pays for it, its cost is included in the APRC (TAE) when the valuation is necessary to obtain the loan, because it forms part of the total cost of the credit (Article 4 of Law 5/2019).

A useful detail: the bank is required to accept any valid valuation you provide, made by an approved valuer, even if it is not its own. That lets you compare prices between valuation firms.

The arrangement fee

The arrangement fee (comisión de apertura) is legal, but it is regulated by Article 14.4 of Law 5/2019: it must be charged once only and cover the whole of the study, processing and granting costs of the loan (they cannot be charged separately) and have been clearly disclosed before signing. Its amount is free and negotiable: it varies by lender and may not apply at all.

Like a required valuation, the arrangement fee counts towards the APRC (TAE): it is part of the real cost of the loan. It is also negotiable: it is worth asking for it to be removed or reduced. To see how much it really raises your mortgage, you can enter the arrangement fee in the calculator and mark it as a cost that counts towards the APR. To understand why the APR is the figure that matters when comparing, see the guide on the difference between the nominal rate and the APR.

What if I signed the mortgage before 2019?

Mortgages signed before 16 June 2019 usually charged the client costs that Spain's Supreme Court has declared unfair. Recovering them requires the costs clause to be declared void (by a court, or acknowledged by the bank) and the outcome depends on the specific contract and on the applicable limitation regime. Where it applies, the case law splits each item as follows:

• Notary: usually split 50/50 between bank and client (STS 49/2019, of 23 January 2019, ECLI:ES:TS:2019:105).
• Land Registry: refunded in full by the bank (same Plenary doctrine of 23 January 2019).
• Agency (gestoría): in full by the bank (STS 555/2020, of 26 October 2020, ECLI:ES:TS:2020:3453).
• Valuation: in full by the bank (STS 35/2021, of 27 January 2021; ROJ STS 61/2021, ECLI:ES:TS:2021:61).
• Old AJD: as a general rule not recoverable from the bank, because on mortgages before 10 November 2018 the taxpayer was the client under the law then in force.

On the time limit to reclaim, the Supreme Court, following the Court of Justice of the EU (STS 857/2024, ECLI:ES:TS:2024:3076), ruled that the limitation period does not start when the costs were paid, but from the finality of the judgment that declares the clause void. As an exception, that period can be brought forward if the bank proves that the specific consumer already knew the clause was unfair. Therefore, it cannot be stated in advance whether a claim is still possible: it can only be determined by examining the specific contract, the nullity of the clause, the dates and the applicable limitation regime. Check with a lawyer.

Summary

• Since Law 5/2019, the bank pays the notary, registry, agency and AJD.
• The client pays only the valuation, the copies of the deed they request and the arrangement fee if agreed.
• The AJD is paid by the bank and each autonomous region sets its rate (check your regional tax authority).
• The arrangement fee counts towards the APR and is negotiable.
• On mortgages signed before June 2019, unfair costs may be reclaimed if the clause is declared void; it depends on each case and the applicable limitation regime.

Work out the real cost of your mortgage, costs included

Official sources

• Law 5/2019 (LCCI) — arts. 4 (total cost of the credit), 14 (transparency) and 23 (BOE, consolidated text).
• Royal Decree-law 17/2018 — the lender is the AJD taxpayer (BOE).
• Spanish Civil Code, art. 1455 — purchase costs (BOE).
• Supreme Court: STS 49/2019 (notary 50% and registry to the bank, ECLI:ES:TS:2019:105); STS 555/2020 (agency to the bank, ECLI:ES:TS:2020:3453); STS 35/2021 (valuation to the bank; ROJ STS 61/2021, ECLI:ES:TS:2021:61); and STS 857/2024 (limitation periods, ECLI:ES:TS:2024:3076).

Notice: this guide and the calculator are for information and educational purposes. They are not financial, tax or legal advice, nor a loan offer. The amounts are indicative estimates and AJD rates vary by autonomous region and date; always check the terms with your bank, the regional tax authority and, for claims, a lawyer. The lender's FEIN sets out the binding offer and the figures calculated under its conditions and assumptions; for variable-rate mortgages they may change later.