Expenses when buying a home

Costs to purchase a property in Spain

1.Public deed in the notary's office.

2.Registration in the Property in the Land Registry.

3.Purchase taxes.

4.Solicitor’s fees and bank fees

The law defines what expenses are payable to the buyer and to the seller. There is little scope for negotiation, although it’s true that any type of sharing of expenses can be agreed upon.

Usually the notary and land registry fees are paid by the buyer as well as the purchase tax. The seller wil lpay his municipaltax (plusvalia)

and capital gains tax.

The purchase costs of buying a property in Spain vary depending on the actual purchase price itself and whether you’re buying with a mortgage.
Tghe property purchase tax for second hand proeprties (called ITP) depends on each community and is 10% at the moment in te valencian community (Cosyas Blanca)

In some cases we find undeclared extensions such as a pool, a garage or some extra m2. The costs for architect certificates, notary fees and land registry fees to declare the true size of a property, and register at the land registry to put all on the title deed are paid by the seller.

The expenses in detail are:

(The values here are average values – they will differ in each case and depend on the value of the property and the complexity of each title deed).

1. Notary fees when buying a property in Spain

Notary expenses are those incurred by the granting of the public deed of sale. The notary's costs are set by regulations and their amount depends on the value of the property, and can be increased by aspects of the notaries operation: number of copies, extension of writing, etc.

Notaries apply a tariff fixed

by the Spanish state, so all notaries of Spain charge the same for the same service at approx: 1.500 EUR

2. Land registry fees for buying a property in Spain

These are the fees generated by inscribing the

purchase-sale in theProperty Registry.They’realsosetby regulations and their amount depends on the price ofthe

property. Approx600EUR

3. Taxes when buying a property in Spain

The payment of this tax is necessary so that the registration of the property in the land registry can be carried out in your name. All purchase taxes must be paid within 30 working days from the date of grantingthe deed.

You have to differentiate two largegroups according to the type ofdwelling

  • Taxes for buying a new home (10%VAT)
  • + 1,5 % Stamp duty (IAJD)
  • Taxes for the purchase of resale homes(10%ITP)

  • Taxes for New Properties on Costa Blanca

    The buyer pays proeprty purchase tax for new built at 10% value added tax, IVA (impuesto sobre el valor añadido) to the seller and the seller sends it onto the tax authority.

    The buyer also pays 1,5% Stamp Duty Tax AJD (Actos juridicos documentados).This taxis generated by signing in the notary and subsequently registering in the land registry. In the Comunidad Valencia it is1,5% of the value declared on the deed. It is paid via a self-assessment form at a cooperatingbank.

    Taxes for Resale Properties on the Costa Blanca

    The buyer pays a property transfer tax ITP (Impuesto de trasmisiones parimoniales) rather than IVA, at a rate of 10% of the value declared in the deed, also paid via a self-assessment form at a cooperating bank. For the buyer just the name of the tax cxhanges, the amount itself is the same.

    If you buy with a mortgage, you have to take into account additional buying costs (see further down).

    Paying property taxes

    To pay property purchae tax in Spain, you obtain printed self-assessment forms, calculate the amount, pay it to the relevant entity and submit the form notifying that you have made payment to the tax office and the land registry. Your lawyer / agent will normally pay the property tax for you, or it could be done by the notary who has drafted the deed.

    Notary and land registry fees when buying a property in Spain

    The notary is the public appointed person where you will sign the oficial purchase-sale title deed. They charge their fees based on property price and amount of pages they have to write for each case. All the notaries charge the same fees which are fixed by the government.
    When you buy with a mortgage you will have to sign two documents at the notary, one is for the purchase of the property the other one is the mortgage contract with the bank. Thus you have to ount the notary fees twice in case of buying with a mortgage. Same applies to the land registry fees.

    Notary fees: 1.000 - 2.000 €

    Land registry fees 600 EUR

    Independent lawyer fees: 800€ -2000€

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