Last week we talked about what taxes you can expect when selling property in Spain. This week we’ll show you which taxes are specific to buying property in Spain. In this article we’ll assume you’re buying a home to live in, not a commercial property. This makes a difference to what taxes you have to pay. Next, it also matters if you’re buying a new home or a previously owned home. Let’s have a look at both types.
Taxes on buying new-build or off-plan property in Spain
Here follows a list of taxes that apply to buying new home, whether it has already been built or is still to be constructed. We have also included some fees which, although not technically taxes, also need to be paid in some circumstances. The rates vary for everything except for the VAT, because the latter is the only one that is a national tax. The others are determined by their respective regions. The rates are a percentage of the purchase price.
- On new Spanish property you pay VAT or IVA in Spanish, which stands at 10%.
- The Stamp Duty Tax or AJD in Spanish ranges from 0.5 – 1.5%.
- The Land Registry fees ranges from 0.1 – 2 %.
- The Notary Public fees also ranges from 0.1 – 2 %.
- Lawyer’s fees would come down to 1 – 2 %.
- If finance is required, the mortgage and Gestoría fees can be 1 – 2 %.
Taxes on buying a resale property in Spain
If you’re buying a property that is not new and has had a previous owner, there is one difference. Instead of paying VAT on the Spanish property, a Property Transfer Tax applies which varies depending on location. The other fees still apply:
- The Property Transfer Tax or ITP in Spanish ranges from 7 – 10 % depending on the region.
- Again, the Land Registry fees ranges from 0.1 – 2 %.
- Equally, the Notary Public fees ranges from 0.1 – 2 %.
- Lawyer’s fees are 1 – 2 %.
- And if you need finance, the mortgage and Gestoría fees can be 1 – 2 %.
Keep in mind that there are also taxes associated with owning a property in Spain that are not included in this overview. When thinking about buying property in Spain, you should also take these costs into account.
Buying property in Marbella
The above is meant as general information and should not be regarded as legal advice. It is always wise to get proper legal advice. However, as a long-standing and trusted Marbella property search agency, we have helped many clients purchase a quality home in this area. So we can help you with the price negotiation. After all, a lower purchase price means lower costs from taxes and fees. Would you like to know more about what we can do for you? Feel free to get in touch via the Realista contact page.
Source: Spanish Property Insight / Raymundo Larraín Nesbitt