Cost of Purchasing Property in Spain

Buying property in Spain costs will be slightly different, depending on whether the property you will buy is new or second-hand. They also differ by property type, region, purchase value, payment terms, etc.

Spain Homes’ property experts have detailed all the costs and taxes below.

What Are the Costs of Buying Property in Spain?

The Spanish property purchase costs are generally between 11-14% of the purchase value. There are two main reasons for this variance. The first is whether the property is new or second-hand. The second is the different tax policies applied by different autonomous regions of Spain.

• VAT (IVA)

It is the next biggest cost after property price. VAT is 10% when buying a new house in all regions of Spain (except Canaria Island). A new home means buying the home directly from the construction company.

VAT is 21% on land and commercial purchases. If a parking lot has a separate title deed, its VAT will be 21% as it is considered commercial.

• Property Transfer Tax (ITP)

A transfer tax - Impuesto sobre Transacciones Patrimoniales (ITP) - applies to second-hand properties. It is usually between 7-10%. It may differ according to the autonomous region or property value.

• Stamp Duty or Legal Documentation Tax (AJD)

Stamp duty is known as AJD (Actos Juridicos Documentados) in Spain. It is required for the notarization of all documents. The rate is usually around 1,2-1,5%. It may vary by autonomous region. It applies to land and new property sales.

• Attorney at Law

Legal fees can vary depending on the amount and complexity of the work to be done. Lawyers generally set the fee as 1% of the purchase price.

It is not a legal obligation to get legal assistance in real estate purchases, but we highly recommend you work with a lawyer. It can be costly to work with both a professional real estate agent and a lawyer at the same time.

However, if you deal with a professional real estate company that has corporate lawyers specializing in the real estate sector, your process will be very comfortable and fast. They explain to you all the necessary steps and assist you in the preparation of documents.

You can also give them power of attorney to act on your behalf so you do not have to stay in the country during the purchasing process.

• Notary

It is obligatory to make the contract in the presence of a notary public to make a purchase contract at the land registry office. Notary fees can vary depending on the purchase value and complexity of the work to be done. It is usually around €1.000.

• Land Registry

The cost of a title deed is generally around €750 but depends on the purchase value of the property.

Getting a Mortgage to Buy Property in Spain

In the case of using a housing loan, there will be some additional mortgage costs in addition to all the above-mentioned costs. The mortgage also increases the notary costs. You can visit Mortgage in Spanish Property Market to learn more.

• Valuation

Banks always ask for a valuation of the property for the mortgage. The appraisal report is a legal requirement and must be made by a registered valuation company. The report is used to determine the real value of the property, and the loan amount is a certain percentage of this value.

The cost depends on the valuation company and the purchase value. It is usually around €250-450.

• Disbursement Fee

It can vary from bank to bank. All commission rates should be well-researched. Rates can be between 0% and 1%.

Talk to Spain Homes’ Experts!

The rates here are just to give you an idea of ​​the costs. As we mentioned above, Spain property purchase costs may vary depending on home features. For example, purchasers' costs on commercial property will differ from that of home buyers.

Our property professionals and corporate lawyers are ready to help you in your whole home purchase process. You can contact us now or visit our nearest office to learn more.