Estimate the taxes and fees associated with the purchase of any residential property in Spain
This article is intended to accompany this Youtube video. Please remember that this information is only intended to help you estimate approximate costs. You should employ an independent lawyer to manage your purchase and they will calculate the funds that you need to allow as part of their service.
Taxes
Taxes are dependent on whether the property is a new build, or a resale (ie. second hand).
New Build Taxes
There are two taxes to pay on New Build purchases:
- IVA (VAT) at a rate of 10%. This applies to all of Spain apart from the Canary Islands where a local 6% tax is payable.
- IAJD (Stamp Duty) Stamp duty varies across the different communities of Spain, use the table below to find the rate for each area.
Autonomous Community | Rate of IAJD |
|---|---|
AndalucÃa | 1.2% |
Aragón | 1.5% |
Asturias | 1.2% |
Baleares | 1.5% |
Canarias | 0.75% |
Cantabria | 1.5% |
Castilla y León | 1.5% |
Castilla-la Mancha | 1.5% |
Cataluña | 1.5% |
Comunidad Valenciana | 1.5% |
Extremadura | 1.5% |
Galicia | 1.5% |
Comunidad Madrid | 0.75% |
Murcia | 1.5% |
C.F. Navarra | 0.5% |
PaÃs Vasco | 0.5% |
La Rioja | 1% |
Resale Taxes
In place of IVA and IAJD a tax called ITP )Transfer tax) is payable on Resales.
The rates of ITP are set at a community level. Use the table below to find the rate for each area.
Autonomous Community | Rate of ITP |
|---|---|
AndalucÃa | 7% |
Aragón | 8-10% |
Asturias | 8-10% |
Baleares | 8-11.5% |
Canarias | 6.5% |
Cantabria | 10% |
Castilla y León | 8-10% |
Castilla-la Mancha | 9% |
Cataluña | 6% |
Comunidad Valenciana | 10% |
Extremadura | 8-11% |
Galicia | 9% |
Comunidad Madrid | 6% |
Murcia | 8% |
C.F. Navarra | 6% |
PaÃs Vasco | 7% |
La Rioja | 7% |
Notary Fees
Price Point | Approx Notary Fees |
|---|---|
€25,000 | €600 |
€50,000 | €625 |
€100,000 | €675 |
€150,000 | €710 |
€200,000 | €750 |
€250,000 | €790 |
€300,000 | €830 |
€400,000 | €850 |
€975,000 | €875 |
Registry Fees
Price Point | Approx Registry Fees |
|---|---|
€25,000 | €395 |
€50,000 | €420 |
€100,000 | €445 |
€150,000 | €470 |
€200,000 | €510 |
€250,000 | €550 |
€300,000 | €590 |
€400,000 | €630 |
€975,000 | €650 |
Legal Fees
It is essential that you employ the services of a independent lawyer to manage your purchase and ensure that the property you purchase is transferred into your name correctly. I recommend that you watch my video about choosing a Spanish Lawyer to learn how to make sure that your chosen lawyer is truly working in your best interests.
Lawyers typically charge between 1-2% of the purchase price, however make sure that you check with your lawyer to see what is included in their fee, what extra services you may need and, whether their fee includes IVA (VAT).
Bank Charges
You shouldn't need to pay any bank charges however that doesn't mean that the bank will not try to take advantage of your situation.
First, find out from your lawyer if you will be expected to use banker's drafts to pay for the property at the notary. If so, ask the bank manager to waive the fee for issuing the bankers draft as a condition of opening an account with them. Typically if you agree to take out your first years house insurance with the bank then they will agree to waive the fee, however, remember to shop around for a new insurer the next year as the bank is rarely the cheapest option.
Secondly, make sure when you open your account that you will not be charged to receive funds from abroad.
This charge can be avoided by channelling any transfers via a currency broker. however, on principle I would avoid any bank that tries to levy that fee.
Currency Exchange
Use a specialist currency broker to transfer the funds for you purchase. Not only will this ensure that you get the best rate possible compared to your bank, however it will also help to avoid any charges made by your bank for the receipt of international transfers.
For day to day transactions I recommend opening a Wise account. More details are available using this link:
