Property Purchasing Costs in Spain
As we aready mentioned before - a purchase of a property especially abroad is a very important process. That is why we would like to present you some information on the purchasing costs in Spain.
The main costs are as follows:
1. Notary. These expenses are produced by the signing and issueing the Public Deed by the notary . The expenses usually depend on the property type and its price , also the expenses can be increased by other reasons such as necessary number of Public Deed copies, number of annexes and number of guarantors. Usually the expenses range from 600 EUR to 1500 EUR.
2. Land Registy. These costs are produced by inscribing the purchase deed into the Land Registry. This institution gives a legal security acting as a public archive where all the records regarding the property are kept. As with the notary costs, regustry costs depend in the type and the price of the property. To calculate approximate costs of inscription at the Land Registry , it is around 0.5% from the declared purchasing price.
3. Taxes. In case you are purchasing a new built property , it is a subject to 10% VAT. If it is a second hand property , a 10% Spanish Transfer Tax is to be paid (ITP). It is important to mention that Transfer Tax rate varies from 6% to 10% depending on the autonomous region the property is located in.
There is another tax, which is called Stamp Duty (AJD) and varies from 0.5% to 1.5% from the purchasing price.
4. Plusvalía Municipal Tax. This is normally paid by the vendor, but it can become a problem for the buyer if the vendor fails to pay it. Buyers have to be particularly careful with this tax when the vendor does not live in Spain. This is a tax upon the increase of the land value in the period between purchase and sale of the property.
In summary , only Plusvalía Municipal Tax is paid by the seller, the rest of the costs have to be covered by the buyer. In order to make it easier for you to calculate your final purchasing costs , we recommned adding roughly 13% to the purchasing price, and in case you need a mortgage it is around 15% on top of the purchasing price.
Please feel free to contact Larrosa&Co Properties in case you wish your deal to run smoothly and effectively.