The full costs involved of purchasing a constructed residence in Spain works out at approximately 10-11% for re-sale properties and approximately 12 % for new properties, if VAT (IVA in Spanish) is paid on the purchase price.
Lawyers’ fees, at approximately 1% of the property price (plus VAT), must be added to these figures. We break down these costs below.
This tax, which sits at 7%, must be paid by the purchaser of all properties: villas, apartments, land, commercial premises or garages, provided the vendor is not a developer or normally trading in the business of re-sale properties (waiver to VAT exemption).
This is applicable at the rate of 10% (IVA) and 1.5 % (AJD) to villas, apartments, or a garage annexed to either, where the vendor is a developer, promoter or habitual trader for new properties. Applicable at the rate of 21 % (IVA) and 1.5 % (AJD) to parcels of land, and for the purchase of new commercial premises.
Notary and Property Registry Fees: Loose approximation of cost at 3,000 euros depends on the number of pages or complexity of the deed and value of the property.
This tax can vary between a few hundred and thousands of euros on a property with land included, which has not changed hands in decades. Imposed by the Town Hall, it is based on the increase in the index value of a property from the year of purchase to the year of sale. It is paid by the vendor unless otherwise negotiated.
