What are the costs of buying a property in Spain?
Aside from the purchase price of the property in Spain you wish to purchase, will need to ensure that you budget for the additional costs associated with purchasing your property in Spain.
Property buying costs in Spain vary from region to region and also in relation to the type of property you wish to purchase.
We have broken down the associated costs below to help you budget for your Spain property purchase. If you would like more specific information relating to the costs of buying a particular property you have found, please do not hesitate to get in touch with us.
Spanish Property Purchase Taxes
New Build Properties: Spain’s equivalent of VAT (IVA, Impuesto sobre Valor Añadido) and Stamp Duty (AJD, Actos Jurídicos Documentados) are applicable to new properties, (ie properties that have never previously been occupied) and also to plots of land.
The current VAT rates for property in Spain are:
10% of the purchase price for new residential properties
21% of the purchase price for plots.
Stamp Duty is also payable and the rate varies depending on the region the property is in. It is calculated as a percentage of the purchase price which varies buy is usually between 0.5% and 1.5%.
Resale Properties: When buying a re-sale property from a private owner, Transfer Tax (ITP, Impuesto sobre Transmisiones Patrimoniales) is paid instead of VAT. The ITP rate varies from region to region, but is between 6% and 10% of the purchase price.
Legal fees for property purchases in Spain can vary due to the amount of work required by the Spanish lawyer and the property value. It is common for lawyers in Spain to calculate their fee for a property purchase based on a percentage of the property purchase price (usually this is 1%, subject to a minimum fee of around €1000-€1500 depending on area).
Notary and Land Registry Fees
These fees will also usually vary depending on purchase price and the complexity of the legal documentation. As a ball park figure you can expect to pay around €750 for Land Registry fees and €1,000 for Notary fees.
Additional Costs For Mortgages
If you need to take out a Spanish mortgage, you will also need to budget for bank fees. The fees charged by Spanish banks for mortgages vary from bank to bank but are normally around 1-1.5% of the loan amount. There is also bank’s property valuation cost which is usually in the region of €800
There will also be additional legal costs as a mortgage deed will need to be prepared and registered in additional to the sales deed. This additional cost varies but is approximately between €500 and €1,000.
Overall Costs of Buying a Property in Spain
As a rule of thumb you should budget 10% -12% of the property value (plus a little more if you require a mortgage).
If you would like a quote from a recommended lawyer together with details of the associated costs in purchasing a specific property in Spain, please do not hesitate to contact us on 01244 470 339 (from outside the UK 0044 1244 470 339) or at email@example.com.
Article published: July 31, 2017