Types of Taxes in buying property in Spain

Taxes on the purchase of a property in Spain

The costs of buying property in Spain account for about 11-14% of the purchase price and may vary somewhat depending on the location, type and conditions of purchase. This amount includes the Spanish tax, Notary fees and costs of opening a mortgage.

A foreigner can freely buy and sell property in Spain as a person or a company. There is no limit to the number of the acquired properties.

Spain is one of the few European countries, where according to the law, all people, no European citizens, who appear as owners, are entitled to receive an annual visa for a stay of six months in the country.

The buyer becomes the owner of the property at the time of signing the deed notarized. The subsequent process of land registration in the State Register typically takes several months.

Due to long time, the language barrier, the complexity of the legislation and in order to avoid problems in the future, buying and selling property in Spain is usually conducted with the participation of lawyers with experience.

Note, that for the calculation of various types of taxes take different tax bases. For some, it is the declared price of properties required in the bill of sale - Escritura. For others, it is the price of Cadastre, which is significantly lower than the market, especially in the second hand market.

The main taxes and expenses paid on the purchase:

1. Value Added Tax (VAT) from January 1, 2013 is 10% of the declared price and is paid only on the purchase of a new property from a developer (first sale). All subsequent resale of the same property carry other taxes - Patrimonial Tax transmissions (ITP).

2. Patrimonial Tax transmissions (ITP), representing 10% of the declared price of the property in August 2013. For the different regions of Spain is slightly different.

Clarification: ITP and VAT are mutually exclusive taxes, you pay VAT or ITP, when you buy the property, but never together.

3. Tax Stamp Duty (AJD - Actos Juridicos Documentados). A position as VAT only once during the initial purchase of a new property of the developer and is 1.5% of the declared value.

4. Notary - calculated on a scale and 0.3-0.5% of the declared value.

5. Check the state fee for the new owner in the land registry is up 0.3% of the assessed value of the property.

6. Plus Valia, taxes collected by the local municipality. It is about 0.5% of the assessed value and establish the office of the municipality. By law, it is the seller who has to pay it.

7. Records Management, fees for paperwork, constitute 0.2% of the declared price.

8. In the case of buying real estate with the help of bank financing costs of opening a mortgage - Mortgage Costs, 1.5-2% of the amount issued by the bank loan. To this must be added the cost of the work of the official appraiser - Taxation, which can vary from 0.2 to 0.4%.

For clarity, if you buy a new apartment for 100,000 euros with bank financing of 70%, ie 70,000 euros, your costs would be:

- VAT                       (10.0%) -10000

- AJD                         (1.5%) - 1500

- Notary                      (0.5%) -  500

- Register                    (0.3%) -  300

- Gestoria                    (0.2%) -  200

- Expenses Mortgage (1.5%) - 1200

- Taxation                   (0.3%) -  300


Total:                                 - 14.000

This is an estimate and may vary slightly. In any case, taxes and charges are former officers and paid to the competent administrative bodies on official invoices. You have the right to request verification.

Taxes - Plus Valia (0.5%) in this transaction is $ 500, but this duty is paid by the seller of the property, unlike all other taxes and notary fees are paid by the buyer.

Our Company LUXUF is delighted to help with the decision of all questions arising on the sale, exchange data logging utility contracts for light, water in the name of the buyer, the subsequent operation of the property.

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