Costs of Purchase
It is wise to calculate around 11-15 % on top of the sales price as additional costs of purchase. 8-10% of this is taxes and other 3-5% goes to administrative costs.
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 in located in, in Valencian community it’s 10% and in Murcia it’s set at 8%.
Other costs are:
Fees payable to the Public Notary (0,6 – 1%)
Registration Office fees (0,3 – 0,7%)
Solicitor (1000€ – 2000€)
Service contract transfers (water and electricity) (around 450€)
Costs paid by the seller
Plusvalía (Capital gains Tax)
This is a local tax based on the increase in value of the urban sites, accumulated during the years the vendor had ownership. It is calculated taking into account the registry value and the number of years elapsed since the previous sale. The rate established by the Municipalities, according to legally defined maximum and minimum limits, is applied to this increment. According to Law, this tax has to be paid by the seller.