Costs and taxes when buying property in Spain

           In addition to the cost of the property, there are a number of additional costs of registering it as the property of the buyer. Most of these costs are government taxes. Are these charges always the buyer's responsibility?

      The approximate cost of registering a property in Spain will be about 13% of its cost, with registration of a mortgage - about 15% of its cost.

 Transfer Tax:

           10% - value added tax: charged upon purchase new property from the developer.

           10% - Property transfer tax: levied on the purchase of a secondary property in Spain.

           21% - tax levied on the purchase of commercial property.

        The taxable base is the value of the property specified in the purchase and sale agreement. It is almost impossible to calculate in advance the exact amount of taxes and fees, since a significant part of them depends on local coefficients and they can be different even for houses located on two adjacent streets. But the correctness of the payment of these taxes is strictly controlled, so there can be no cases of fraud. The difference between the deposit left at the notary and the taxes actually paid is returned to the buyer.

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 Expenses for the execution of the purchase and sale agreement:

           Notary fees - notary fees for the certification of the deed, the main official document of the purchase and sale (Escritura Pública). Notary fees are the same for all notaries. The notary fee rate is calculated on a scale that progresses depending on the value of the property in Spain, usually from 0,5% to 1% of the transaction amount.

           Registration fee - registration costs charged for the filing of the sales contract with Companies House (Registro de Propiedad). As in the case of the notary fee, the amount of this fee is established by law and is the same for all registration chambers. The registration fee rate depends on the value of the property. Usually 1% of the property value.

           Legal fee - payment for the services of lawyers for the preparation of documentary acts and their submission to the Companies House.

           Tax on documentary registration of legal acts (Impuesto sobre actos jurídicos documentados) - the tax that is levied when drawing up any notarial deeds to be registered. The tax rate is 1.5% from the cost of housing specified in the purchase and sale agreement.

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