Right now our lawyers
will cover the taxes on purchasing Real Estate in
In general, the costs associated
with the purchase of a property will vary, depending on the price of the
transaction. They usually amount to between 10% and 13% of the purchase price,
and are as follows:
Notaries’ fees
All notaries in Spain must charge more
or less the same rate for the same service, as they are subject to official
fare, although the cost of notarial documents varies, depending on several
factors such as the price or value of the goods involved in the transaction,
the number of intervening parties, the number of pages in the document, etc.,
which makes it difficult to calculate the final sum of the invoice.
Property Register fees
As with notaries, Property
Registrars must keep their fees in line with certain rules that are the same
all over Spain
Transfer Tax (Property Conveyance
Tax) and Stamp Duty (for Documentation of Legal Acts)
a) Transfer Tax
This is only applied to second-hand
property purchases (resale) and is paid after the public deed has been signed.
The amount depends on each region,
but it is usual that this tax is calculated by stages and determined by the
price of the property. Special rules and incentives may be applied in
accordance to the current legal frame on the moment of the purchase. The tax is
assessed individually, so that these quantities and tax rates refer to the
percentage that each buyer has in the purchase.
b) Stamp Duty
This tax is exclusively charged on
the purchase of new housing, not second-hand (as the latter is subject to the
Transfer Tax).
The regions or autonomous
communities in Spain set reduced tax rates for certain cases, including the
acquisition of one’s usual home at a price below 130,000 Euros by
individuals under the age of 35, or up to a price of 180,000 Euros if the
person acquiring the home has an officially-recognised disability, and the
acquisition of social housing for one’s usual home. In general, some discounts
and incentives may be applied depending on the region and legal stipulations.
VAT
The purchase of new housing is subject
to payment of Value Added Tax (VAT).
Other expenses
Apart from those that have already
been mentioned, purchasers will need to cover other expenses that, in theory,
should not excessively increase the final cost of the purchase operation, and
which include the contract and connection fees for utilities and other such
supplies, the drawing up of a power of attorney or a will in Spain
We can help estimating all the cost
and taxes linked to the purchase. Our
lawyers will always give you an answer.
