The costs of property purchase

 

When buying a property in Spain, it is wise to calculate around 11-15 % on top of the sales price as additional costs of purchase. 8-10% of this is tax (taxes may vary between different provinces), and the other 3-5% goes to administrative costs.

Taxes

Buying a new property

IVA “Impuestos sobre el valor añadido” (VAT)

10% of the amount specified in the Title Deed. If you buy a parking space registered separately, the applicable rate is 21%.

IAJD “Impuestos sobre actos jurídicos documentados” (Tax on Documented Legal Deeds)

This tax is payable every time a document specifies an amount of money and is susceptible to being recorded in the Property Register after having been signed before a Public Notary. The tax amount varies between 0,1% and 1,5% of the total amount signed in the Title Deeds.

Buying a resale property

ITP “Impuestos sobre transmisiones patrimoniales” (Tax on capital transfers)

The percentage will vary depending on the Autonomous Community where the property is located, in the Valencian community it's 10% and in Murcia, it's set at 8%.

Other costs

Other costs are:

Fees payable to the Public Notary (0,6 - 1%)

Registration Office fees (0,3 - 0,7%)

Solicitor (1000€ - 2000€)

Service contract (new water and electricity around 450€, if need to make new contracts)

Read more about the annual costs or our services for holiday homeowners.