Taxes and fees when purchasing property in Spain
When you buy an apartment, a townhouse or a villa, there are certain costs and taxes in addition to the actual price of the property.
Generally you should count on 11-13% in addition to the purchase price.
Taxes when purchasing a “newly built” property
When purchasing newly built properties, value added tax of 10% of the purchase price (Impuesto de Valor Añadido) is added. In addition, stamp duty of 1.2% is added.
Taxes when purchasing a “non newly built” property
When purchasing a non newly built property, transfer tax (Impuesto de Transmisiones Patrimoniales) is added, 8% on prices up to 400.000 €, 9% on prices between 400.000 € and 700.000 € and 10% on prices over 700.000 €. Stamp duty is still applicable.
The buyer is also accountable for the notary’s fees when the parties meet at the notary to sign the title deed. The actual cost here can be difficult to estimate in advance, as a number of different factors come into play, but a pretty good rule of thumb is that it is about 1.0% of the purchase price.
The registration in the property registry for the buyer entails additional costs. Even here it is a cost that is difficult to estimate, but a good rule of thumb is about 1.0% of the purchase price.
Your solicitor normally takes around 1% of the purchase price for all the work that he or she does for you before, during and after purchase.
If you choose to take out a loan in a Spanish bank, there are costs for this too. This cost is between 2-3% of the amount borrowed.