Buying with a mortgage in Cádiz: how IGIC changes your purchase costs

Anyone comparing notes with a friend who bought a flat in Cádiz or anywhere on the mainland will notice the figures do not match. That is because the Canary Islands sit outside the mainland VAT system. Instead of the national VAT applied to new-build homes elsewhere, properties in Cádiz are taxed under IGIC, the islands' own indirect tax, administered locally rather than by the national tax agency.

For a non-resident buyer arranging a mortgage from the United Kingdom, this matters because the bank will want to see that you have budgeted correctly for completion day. Getting the tax treatment wrong at the planning stage can leave a gap between what you expected to pay in cash and what the notary actually asks for.

Cádiz province stretches along the Atlantic Costa de la Luz, known for whitewashed towns, wide sandy beaches and a windier climate than the Mediterranean coast, with Tarifa a hub for windsurfing and kitesurfing. Buyers here often want an authentic Andalusian setting rather than a purely resort atmosphere.

Jerez airport serves the area, with Gibraltar and Seville also within driving distance. The coast is lively in summer but quieter otherwise, and property ranges from town houses in historic centres to villas near the beach or countryside fincas further inland.

What follows are measured, dated figures for Cádiz (province) — who lives there, what homes are advertised for, how to get there and the climate — each one sourced. They help you build a realistic picture of Cádiz (province) as you work out the budget for a Spanish mortgage.

Cádiz province, taken as a whole rather than just its capital, counted 1,261,420 registered residents on 1 January 2025 in the INE census. The number reflects the full territory, large and small municipalities alike, that makes up the province. The province of Cádiz counts 68,798 residents with a foreign passport, close to 5 out of every 100 people. That is a modest figure province-wide, though some towns within it stand well above the average.

As of 1 January 2025, the province of Cádiz had 7,150 British nationals on its register, one of its largest foreign communities. Such numbers indicate a long-established presence across the province. Numbers have risen since 2021, when there were 6,587 registered. The upward trend points to continued interest in settling in the area. The table below lists the largest foreign nationalities registered in Cádiz (province) on 1 January 2025, among those INE publishes for every municipality.

Beyond the main nationalities listed above, the INE also registers smaller groups, Germans, Italians, Dutch, Belgians or Scandinavians among them, across Cádiz province. This breakdown reflects 1 January 2022, the last edition counting every nationality individually, a different year from the table above.

Our price bank includes 5,145 homes for sale throughout the province of Cádiz, with a median of €2,220/m² and a median ticket of €220,000. Both are lower than the €3,135/m² median of the 130 towns we track across Spain, which puts the province on the more affordable side of the range. Listings span a wide spread, but the middle half of the market sits between €1,580 and €3,050 per square metre, leaving room for both lower and higher asking prices.

On the median asking price in Cádiz (province) of €220,000, transfer tax at the regional rate of 7 % comes to about €15,400, plus roughly €2,600 for notary, registry and gestoría fees. The total of about €18,000 must come from the buyer's own savings, not the mortgage. Bear in mind these are asking prices from adverts live on 2026-11-01, not the prices actually agreed. Negotiation sets the final figure, which depends on the home's condition, exact location and orientation.

Below is a comparison of the towns we follow in Cádiz, covering inhabitants, foreign residents per 100 inhabitants and median asking prices per square metre across the province.

According to INE's experimental estimate from holiday-rental platform listings, Cádiz (province) had 15,116 tourist dwellings in 05/2026, offering 73,667 bed places and close to 12 per 1,000 residents. The presence is moderate overall, but a regional licence remains necessary for tourist letting.

As Cádiz is served by only one commercial airport, Aeropuerto de Jerez (XRY), buyers near the provincial border should also weigh up whether an airport just across the boundary might be more convenient. The climate figures below were recorded in or near Cádiz, the provincial capital, and conditions elsewhere in the province, inland, at altitude or on other islands, can differ noticeably. The mean temperature in January is 12.7 °C (average daily minimum 9.4 °C) and in August 25.0 °C (average daily maximum 27.9 °C), marking a genuinely mild winter. Heating needs tend to be modest compared with much of Europe. Annual rainfall sits around 523 mm, falling on roughly 51 days, neither particularly dry nor wet. Climate data come from AEMET's 1981-2010 normals, recorded at its Cádiz station around 5 km away; the actual spot may vary a little, particularly further inland or higher up.

In the twelve months to 07/2026, 18,324 homes changed hands in the province of Cádiz, INE figures show. Such activity tends to bring more reference prices and a larger selection for anyone searching. The figures above cover the whole province of Cádiz, but they vary widely from town to town and from property to property. Share what you are searching for and we can review the details with you.

The transfer tax on a resale home is set by each Spanish region. In Cádiz the general rate is 7 %, and on top of it come notary, land registry and gestoría (roughly one more percent). On a new build you pay 10 % VAT plus stamp duty instead of the transfer tax. This money is not lent by the bank.

The first question your gestoría will ask is whether the home in Cádiz is a new build sold directly by a developer or a resale changing hands between private owners. For a new build, IGIC is charged instead of mainland VAT, together with a stamp duty element. For a resale, the buyer pays ITP, the regional transfer tax, calculated on the declared value of the property and set by the Canary Islands government rather than by Madrid.

Either way, the tax is paid on completion, on top of the agreed price, and it needs to be covered with your own funds rather than through the mortgage, since Spanish banks finance the purchase price, not the taxes around it.

Beyond the headline tax, the rest of the cost structure in Cádiz looks much like anywhere else in Spain. You will still need to budget for notary fees, land registry inscription, gestoría charges and the bank's own valuation of the property, since the mortgage lender needs an independent figure to decide how much it is prepared to lend.

Spanish banks usually ask non-residents for a larger deposit than residents, and the exact share depends on the bank, your country and your profile, so it is worth getting a written estimate from more than one lender before you commit to a purchase date.

Spanish lenders assess a non-resident file by looking at income and existing debt back in the United Kingdom, usually translated by a sworn translator and sometimes apostilled. Preparing this early avoids delays once you have found a property in Cádiz you want to secure with a mortgage offer.

Because the United Kingdom is no longer an EU member state, British citizens can stay in Spain for up to 90 days in any 180-day period without a visa; longer stays, for example while completing renovation works or settling in, require a visa or residence permit arranged separately from the mortgage.

Spain is a relatively short flight away from most UK airports, making regular visits to a Spanish property straightforward for owners based in Britain. Many British buyers are drawn to Spain for its climate, coastal lifestyle and established expatriate communities. One practical point to bear in mind is that Spanish inheritance law differs from UK rules, so it is worth taking specific advice on how it may affect the property and one's estate. Currency movements between sterling and the euro can also affect the overall cost of purchase and ongoing expenses.

Spain and the United Kingdom have a double taxation agreement in place, and a local tax adviser should confirm how rental income or gains from Spanish property must be declared and reported to HMRC.

As the United Kingdom is no longer an EU member state, British citizens may stay in Spain for up to 90 days in any 180-day period without a visa, and must apply for a visa or residence permit for longer stays.

Since the United Kingdom uses the pound sterling (GBP) rather than the euro, buyers should factor in exchange-rate movements and currency conversion costs when paying for a property or transferring funds to Spain.