As you may know, buying a property in Spain involves more than it seems, it is not like buying a pint down the local and there is a couple of add ons that you need to know before buying.

When buying a property in Spain it is important to estimate the taxes you will have to pay and to include this in your budget. As a guide the taxes and fees usually add up to 10% of the overall value of the property you are purchasing. If requiring a mortgage these costs could rise by a further 1-2% due to the fact that there are two title-deeds, one for the purchase and one for the mortgage and therefore the Notory and Registry costs are higher.

TAXES PAYABLE AT THE TIME OF PURCHASING YOUR PROPERTY

RESALES: Buyers of resale property are required to pay the impuesto de Transferenica de Propiedad - which is 7% of the declared purchase price as stipulated on the title-deeds. This is the value that determines the level of tax to be paid. (Invariably the declared value is less than the true purchase price).

NEW PROPERTY: Buyers of brand new houses in Spain are liable to pay IVA (VAT)  8%, plus 1% stamp duty. However if you buy land, commercial premises or parking spaces for garages, then the VAT rises to 18%. With new promotions the builder or promoter usually declares between 75-100% of the purchase price.

The other 3% of the overall 10% estimated costs are made up of Notary, Land Registry and stamp duty fees (new property only).

For more information on taxes and costs when buying a property in Spain, please contact by e-mail via our contactform.