Buying a new build property (built or off-plan)
We advise our clients to allocate around 12% of the completed sales price for additional costs on a new private (not commercial) property.
VAT. This is the biggest cost on a purchase and is currently 10% for a house, villa, apartment, townhouse or garage annexed to a dwelling. (commercial properties have a vat of 21%)
Stamp duty (AJD). This is currently 1.5% (at the time of writing there is a discount (0.3%) for completions before the December 31st 2021)
Lawyers fees. (Conveyancing) The normal fees would range between 0.5 and 1% of the completed sales price. It is important to understand that going for the lowest fee is not always best in terms of expertise.
Notary and Land registry fees. These are usually a fixed price around €300 to €1000 depending on the price of the property.
Buying a Re-Sales property (from existing owner)
We advise our clients to allocate around 10-12% of the completed sales price to cover additional costs. Property Buying Costs Spain explained below.
Spanish transfer tax (ITP). This is charged on a sliding scale between 8 and 10% as per below.
| Up to €400,000. | Up to €30,000. | 8% |
| From €400,000 to €700,000. | From €30,000 to €50,000. | 9% |
| Over €700,000. | Over €50,000. | 10% |
Transfer Tax reduced to a 7% in Andalucía
The Andalusian government has approved a decree that includes a reduction in the Transfer Tax (the tax paid on the purchase and sale of second-hand homes, for example), at present the three rates currently set at 8%, 9% and 10% will now be replaced by a flat rate of 7%. In addition, there will also be a small reduction in Stamp Duty Tax from 1.5% to 1.2%. The costs associated with paying these taxes on the purchase of a second-hand property will be significantly reduced. This new reduction will be available only until 31st December 2021 and only in Andalucía.
Lawyers fees. (Conveyancing) The normal fees would range between 0.5 and 1% of the completed sales price. It is important to understand that going for the lowest fee is not always best in terms of expertise.
Notary and Land registry fees. These are usually a fixed price around €300 to €1000 depending on the price of the property.
Ongoing property costs.
There is annual property tax (called IBI – Impuesto sobre Bienes Inmuebles in Spanish). That would be between 0,4% and 1,16% of the property’s cadastral value.
Other expenses are the rubbish fees which are paid annually and the monthly community fees.
To give an idea to the cost of the IBI and rubbish tax, where I live the, the property is valued at around €500.000 and the IBI and rubbish tax is around €400 per year.
Community fees. These fees differ dramatically, sometimes they are higher because of mis-managent, sometimes becuase the grounds are larger or there are more facilities (pools, lifts etc..). But it is important to understand that cheaper is not always better. As looking after the community in a professional way is very important.