For a buyer making a calculation of the costs of buying a property in Spain, it is very convenient to have details of the total official costs involved in purchasing a constructed residential property in advance.
The total amount should be around 10-12% for resale properties or around 12-14% for new properties if VAT is paid on the purchase price, plus lawyer’s fees.
Here you have a detail of the purchase costs:
- Transfer Tax (I.T.P.):
Payable by the buyer for the purchase of any apartments, villas, flats, land, garages, storage, commercial…, provided the vendor is not a developer.If the “minimum fiscal value” of the property, as per the Regional Government, is greater than the price, then the minimum fiscal valuation applies:
- 8% is applicable up to the amount of 400.000€ (or 30.000€ in the case of garages except those belonging to the dwelling and with a maximum of two).
- 9% is applicable to the amount between 400.000€ and 700.000€ (or between 30.000€ and 50.000€ for garages).
- 10% is applicable to the amount exceeding 700.000€ (or 50.000 in case of garages).
- VAT & Stamp Duty:
- 10% + 1,5%: For any villa or apartment (or garage annexed to an apartment), where the vendor is a developer, promoter or habitual trader for brand-new properties.
- VAT & Stamp Duty: 21% + 1,5%: For the first sale or resale of land, and only for the first sale of brand-new commercial premises where the vendor is a developer, promoter or habitual trader or company.
- VAT and Stamp Duty or Transfer Tax (I.T.P.): 10% (Villa/Apartment), 21% (comm. premises) +1,5% ITP. In resales of any villa, apartment or commercial premises, where the vendor is a company, developer, promoter or habitual trader and the purchaser is a company that will apply or use the property for the development of its activity, they can chose between paying VAT (that can be deduced with the normal activity of the company) and 1,5% of stamp duty or Transfer Tax.
- Notary and Property Registry Fees: Approx. 3.000€ for both.
The cost increases according to the number of pages or complexity of the title deed (mortgage… etc) and value of the property.
- Lawyer’s Fees: Approx. 1%.
Lawyer’s fees are in the order of 1% of the selling price, more or less, depending on the lawyer and the price of the property.
- Municipal Added Value Tax (called Plusvalía):
The plusvalía tax can be as little as a few hundred Euros or as much as many thousands of Euros on a property with a lot of land that hasn’t changed hands in many years. This tax corresponds, by its nature, to the vendor who is responsible for its payment.
Information given is offered for information purposes, excluding the company from all responsibility, not constitute an official publication nor will it be binding. We always recommend check with your lawyer or adviser.
Massimo Filippa
