HOW MUCH are the additional COSTS when PURCHASING a home in Spain?
In total, these costs will be +/- 9 to 13% depending on the circumstances.
These costs can be broken down as follows (in chronological order):
Your own Lawyer: in Spain, the Notary Public only executes the deed, so all preparatory work needs to be done by the buyer’s (and seller’s) lawyers. They draw up the private sale agreement and perform all the due diligence concerning the property, (building) permits, or debts encumbering the property (related to a mortgage or arrears).Your lawyer will charge +/- 1,21% of the purchase price for this service.
Mortgage: the mortgage fee will be calculated by your mortgage broker
Notary: the notary fees will be +/- 0,8 % and may vary slightly depending on the length of the deed.
Registration fees: “I.T.P = Impuesto sobre Transmisiones Patrimoniales” on existing properties in Andalusia are:
8% for a purchase value up to 400,000 euros
9% for a purchase value of 400,000.01 to 700,000 euros
10% for a purchase value starting from 700,000.01 euros
Temporarily reduced to 7 % !
* VAT: “I.V.A = Impuesto sobre el Valor Añadido”: only for NEWLY CONSTRUCTED HOMES, 10%.
This replaces the registration fees referred to above.
In case of purchase with VAT, their is also a 'stamp duty' of 1,5 %, temporarily reduced to 1,2 %
Land registry: “Registro de la Propiedad”: 0.3 to 0.7% of the purchase price
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