Fees when buying a property in Spain.
Buying a property in Spain entails certain costs in addition to the purchase price, several taxes and fees apply that buyers need to consider. The total costs and taxes to be paid for the purchase of a property are between 10% and 12% of the price of the house.
The Process of Buying a Property in Spain
The process of buying a luxury property in Spain is fairly straightforward, but it is advisable to have the support of an experienced agent to ensure a smooth transaction. From identifying the ideal property to negotiating the price, a good agent guides the buyer through every step, ensuring that all legal and financial aspects are handled appropriately.
Some properties are available more discreetly, without advertising on real estate portals, which makes working with an agent even more important. These professionals have access to private listings and can offer their clients exclusive properties that are not available to the general public.
What fees do you pay when buying a property in Spain?
Here’s an overview of the key taxes and costs involved in the purchase of a property in Spain:
Resale Properties.
- Transfer Tax (Impuesto sobre Transmisiones Patrimoniales – ITP):
This tax applies to the purchase of second-hand properties. The rate varies by region but typically ranges from 6% to 10% of the property’s purchase price.
New Properties.
- Value-Added Tax (IVA – Impuesto sobre el Valor Añadido):
If you’re buying a new property from a developer, IVA applies instead of ITP. The current rate is 10% for residential properties and 21% for commercial properties and land purchases.
For All Properties.
2. Stamp Duty (Actos Jurídicos Documentados – AJD):
For new properties, buyers must also pay stamp duty. The rate is usually between 0.5% and 1.5% of the purchase price of the property, depending of the community.
3. Notary and Land Registry Fees:
These costs are related to formalizing the sale and registering the property in the buyer’s name. Notary fees typically range from 600 to 900 euros, while registration fees vary between 300 and 600 euros, depending on the property’s value.
In adittion, you could consider: Legal and Gestoria Fees (using the services of a good lawyer is highly recommended), Banking and Morgage If you’re using financing to buy your property in Spain.
Understanding these taxes is crucial for accurately budgeting the total costs of purchasing property in Spain.
Are all the costs the same when buying a property in Spain?
The exact amount depends on the value of the property and the autonomous community in which the purchase is executed.
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