Property taxes are the biggest cost when Buying A New Build Property In Spain.
For New Properties i.e. properties sold directly by the developer or builder the tax (IVA) rate is 10% of the purchase price.
If you are buying a plot of land or other types of property i.e. store room, garage or a commercial building the tax is 21% unless the garage and store room are purchased with the property and included on the same title deed in which case the tax is the same as the property 10%.
When you purchase a property in Spain it is necessary to sign the title deed and register the deed with the land registry. This is done in the presence of a notary.
- Notary costs are fixed by law and are all the same throughout Spain, costs are determined by the cost of the property
- Price of property €6010.13 to €30,050.61 the notary cost is €4.5 per thousand
- €30,050.62 and €60,101.21 the notary cost is €1.50 per thousand
- €60,101.22 to €150,253.03 the notary cost is €1 per thousand
- €150,253.04 to €601,012.10 the notary cost is €0.5 per thousand
- From €601,012.10 to €6,010,121.04 the notary cost is €0.3 per thousand
- For properties over €6,010,121.04 the cost is agreed with the individual Notary prior to signing the deed
The same as the Notary costs, the land registry costs are fixed by law and the amount is based on the price of the property.
- €6010.13 to €30,050.61, the cost will be € 1.75 per thousand
- €30,050.62, to €60,101.21, the cost will be €1.25 per thousand
- €60,101.22 to €150,253.03, the cost will be €0.75 per thousand
- €150,253.04 to €601,012.10, the cost will be €0.30 per thousand
- Above €601,012.10, the cost will be €0.20 per thousand
STAMP DUTY, Impuesto sobre Actos Jurídicos Documentados (IAJD)
The IAJD applies to all purchases or acts that are formalized in public documents.
The rates vary depending on the Spanish autonomous community where the property is located.
The general rate is between 0.5% and 1.5% of the cost of the property
Real estate agency fees
Real Estate fees are normally paid by the seller usually at an amount of 5% of the purchase price. Official registered Spanish real estate agents (Agentes de la Propiedad inmobiliaria) have a fixed fee established by their professional body.
It is essential to instruct a professional lawyer in Spain who is experienced in property law and conveyance. The cost of lawyer’s fees in Spain varies between 1% and 1.5% of the purchase price.
Other Costs Involved In Buying A New Build Property In Spain Are:
- Mortgage Costs (Click Here)
- Banking Costs
- Utility Costs
- Annual Property Taxes
- Community Fees