This is all the information you need to know and understand when thinking of purchasing a Property in Spain
The total official costs involved in purchasing a constructed residential property should be around 10-11% for resale properties or around 12% for new properties if VAT is paid on the purchase price, plus lawyer’s fees. Below a closer look at each costs depending on type of property and the property price.
Transfer Tax (I.T.P.)
Scaled at 8%, 9% & 10% Payable by the buyer for the purchase of any Real Estate (villas, flats, land, commercial premises, garages), provided the vendor is not a developer or normally trading in the business of resale properties. If the “minimum fiscal value” of the property, as per the Regional Government, is greater than the price, then the minimum fiscal valuation applies: 8% is applicable up to the amount of 400,000€ or 30,000€ in the case of garages except those belonging to the dwelling and with a maximum of two; 9% is applicable to the amount between 400,000€ and 700,000€ or between 30,000€ and 50,000€ for garages; 10% is applicable to the amount exceeding 700,000€ or 50,000€ for garages.
VAT and Stamp Duty: 10% + 1.5%
For any villa or apartment, or garage that is annexed to an apartment or villa, where the vendor is a developer, promoter or habitual trader for brand- new properties.
VAT and Stamp Duty: 21% + 1.5%
For the first sale or resale of parcels of land, and only for the first sale of brand-new commercial premises where the vendor is a developer, promoter or habitual trader or a company.
VAT and STAMP DUTY or TRANSFER TAX (I.T.P.): (10% dwellings / 21% rest of properties) + 2% or Scaled at 8%, 9% & 10%
In resales of any villa, apartment or commercial premises, where the vendor is a company, developer, promoter or habitual trader and the purchaser is a company that will apply or use the property for the development of its activity, they can chose between paying Transfer Tax at the scale of 8-9-10% or VAT* (that can be deduced with the normal activity of the company), where the applicable rate is 21% in all properties (commercial premises, plots, etc.) with the EXCEPTION of those properties (dwellings) that have an applicable rate of 10% plus 2% of stamp duty or Transfer Tax in all cases where VAT is applicable.
*Declination of VAT Exemption: Change of Tax Payer has been recently approved, where the buyer must pay VAT directly to the Revenue Office and not to the Seller.
Notary and Property Registry Fees: 3,000€ appox
The cost increases according to the number of pages or complexity of the title deed, and value of the property.
Municipal Added Vaule Tax (Plus Valía)
The Plus Valía tax (described earlier) can be as little as a few hundred Euros or as much as many thousands of Euros on a property with a lot of land that hasn’t changed hands in many years. This tax corresponds, by its nature, to the vendor who is responsible for its payment, unless otherwise negotiated.
Lawyers Fees: 1% Approx.
Lawyer’s fees are in the order of 1% of the selling price, more or less, depending on the lawyer and the price of the property.
These detail are correct as of today but are just here a guide and one would be best advised to seek proffesion advice before entering in to any purchase contract.