Purchase and selling Costs
As with any country there are associated costs one must be aware of when buying a property here in Spain.
TRANSFER TAX (ITP)
Payable by the buyer for the purchase of any Real Estate (villas, flats, land, commercial premises, garages), provided the vendor is not a developer or normally trading in the business of resale properties (waiver to VAT exemption).
Andalucía has introduced a special flat rate of:
7% For all re-sale properties – Valid from 27-04-21 until 31-12-21
Reduced transfer tax for real estate companies or professionals that buy resale property and sell within 5 years fixed at 2% of purchase price
OR: VAT (IVA) AND STAMP DUTY (AJD)
- Villas, apartments, or a garage that is annexed to an apartment or villa, where the vendor is a developer, promoter or habitual trader for brand-new properties.
10 % + 1.2%
- Parcels of land, for the first sale of brand-new commercial premises.
21% + 1.2%
NOTARY AND PROPERTY REGISTRY FEES
The cost increases according to the number of pages or complexity of the title deed, and value of the property.
+/- € 3,000
These are in the order of 1% of the selling price, more or less, depending on the lawyer and the price of the property.
1% + VAT
When selling your property in Spain there are a number of expenses one must take into consideration.
MUNICIPAL ADDED VALUE TAX (PLUS VALÍA)
This can be as little as a few hundred Euros or as much as many thousands of Euros on a property with a lot of land that has not changed hands in many years. It is a tax by the town hall based upon the increase in the index value of a property between the year of purchase to the year of sale.
This tax corresponds, by its nature, to the vendor who is responsible for its payment, unless otherwise negotiated and will be calculated by your lawyer.
CAPITAL GAIN TAX
There are many factors that relate to your Capital Gains liability if indeed there is one.
Your lawyer will advise you or we can introduce you to our legal and fiscal partners O.Eguren Abogados who can advise you accordingly.