Purchase Costs Guide
A short description of the costs of purchase property in spain
1. Legal fees are charged at around 1% of the purchase price.
2. VAT of 7% and stamp duty of 0.5% for new properties, transfer tax at 6% for secondhand properties and Vat of 16% for villa plots plus stamp duty of 0.5%.
3. Notary fees are fixed by law and vary depending on the value of the property. On a property of say €60,000 the fees would be approx. €550.
4. Property registration fees are approx 40% of notary fees. In summary a purchaser of new property from a developer should allow about 10% of the purchase price for costs including VAT.
5. Plus Valia is a local tax calculated on the increase in value of the land from when it was last sold. This calculation is based on the rateable value and is a ‘once off’ payment payable when the property is purchased/sold. Not all town halls charge Plus Valia. Although the legal obligation for this tax falls on the vendor it used to be customary for the purchasers to pay the tax. In recent years it is quite common for the purchasers and sellers to negotiate this payment prior to signing the Escritura (Title Deed).
6. Allow in total 11% for purchase costs.
