As we have seen there are considerable costs associated with the purchase of a property in Spain and, given the complexity of their administrative system it can seem to be a complicated area to navigate. Now that we have gone through the details let’s look at all the taxes and fees step by step in a simplified form.
Step one: Establish which taxes to apply
Sept 2: Apply Taxes at the Regional Rates
Cost | Description | Amount |
IVA (VAT) | Value Added Tax, applicable to new-build properties (10% or 7% in Canary Islands) | 10% or 7% of the property price |
IAJD (Stamp Duty) | Tax on Documented Legal Acts, applicable to new-build properties | 0.5% to 2% of the property price, depending on the autonomous community |
ITP (Transfer Tax) | Transfer Tax, applicable to resale properties | 6% to 13% of the property price, depending on the autonomous community and value |
Step 3: Estimate the Associated Costs
Cost | Description | Amount |
Notary Fees | Fees charged by the notary for overseeing the signing of the public deed | Approximately 0.5% of the property price |
Land Registry Fees | Fees for registering the change of ownership with the Land Registry | Approximately 0.4% to 0.5% of the property price |
Legal Fees | Fees charged by the lawyer for their services throughout the purchase process | 1% to 2% of the property price, plus VAT |
Bank Charges | Potential charges for receiving funds, issuing banker's drafts, or currency exchange services | Varies depending on the bank and services used |