COSTS WHEN BUYING A PROPERTY
19 07 - 2022
The costs that a buyer must assume when purchasing a property in Spain include a series of taxes, fees and costs associated with the process.
The main ones are detailed below:
1. Property Transfer Tax (ITP):
What it is: Tax applicable to the purchase of second-hand properties.
Cost: Between 6% and 10% of the purchase price, depending on the autonomous community.
VAT (Value Added Tax)
What it is: Applicable to newly built homes in lieu of ITP.
Cost: 10% of the purchase price for dwellings.
21% for commercial premises or land.
Documented Legal Acts (AJD)
What it is: Tax on notarial documents that is levied on the signing of public deeds.
Cost: Between 0.5% and 1.5% of the purchase price, depending on the autonomous community.
2. Notary fees What it is:
Cost of the public deed of sale, which is formalised before a notary.
Cost: Depends on the price of the property, but usually varies between 600 € and 1.000 €.
3. Registration fees:
What: Registration of the property in the Land Registry.
Cost: Approximately between 400 € and 650 €, depending on the value of the property.
4. Gestoría Fees (optional):
What: If you decide to hire a gestoría to carry out the administrative procedures (registration in the Land Registry, payment of taxes, etc.).
Cost: Between 300 € and 500 €.
5. Appraisal (if there is a mortgage):
What it is: Report that assesses the value of the property so that the bank can grant the mortgage.
Cost: Between 250 € and 500 €, depending on the bank and the size of the property.
6. Mortgage expenses (if applicable):
Arrangement fee: Some banks charge a fee for arranging the mortgage (between 0.5% and 1% of the amount financed).
Compulsory insurance: By law, you must take out damage insurance to protect the property.
7. Other expenses Deposit or deposit (arras):
It is usual to pay an initial amount to reserve the property, which is usually 10% of the purchase price.
Moving and fitting out: If you need to adapt the property, there may be additional costs for renovations, decoration or transport.
Before buying a property, it is important to calculate these additional costs and allow between 10% and 15% of the purchase price to cover all associated expenses. Take advice from a qualified and registered lawyer or estate agent, who can facilitate the process and ensure that everything is done correctly.
If you have any questions, please contact us.
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