Here is our quick guide to taxes when buying a property in Spain. There are different taxes you should be aware of when buying a new property or a resale property.
New Property - property is sold new, usually by a developer and has never had an owner before and it must come with a certificate mandating the property as brand new, this certificate must be signed but the architect and engineer.
Resale - property isn’t new and there is a transmission of ownership
New buildings
IVA or VAT
The biggest tax in Spain when you buy a new property is called IVA (impuesto sobre el valor Anadido) and is calculated at 10% of your purchase price. This is paid when you go to the deed.
AJD or Stamp duty
Actos Juridicos Documentados is charged at 1% of the purchase price. This is also paid when you go to deed
Lawyers Fees
Are paid in advance and are usually around 1% of the purchase price.Land Registry Fee is usually around 1% and Notary Fees are 0.5 to 1%. Which is paid when you go to the deed.
In summary, allow 12% to 15% of the purchase price.
Resale buildings
ITP (Impuesto de Transmisiones Patrimoniales)
Instead of IVA and AJD, you pay property transfer tax known as ITP it ranges from 6% to 11%, depending on which area you choose to buy (please use the calculator below, to get more detailed taxes on your preferred area of purchase).
Lawyers Fees
Are paid in advance and are usually around 1% of the purchase price.
Land Registry Fee and Notary Fees
Land Registry Fee is usually around 1% and Notary Fees are 0.5 to 1%. Which is paid when you go to the deed.As the taxes you have to pay to depend on your purchase price, it is difficult for us to put a number on it until you have chosen property of interest, but in summary, expect 9% to 15% of your purchase to cover all fees and taxes.
For the full comprehensive list of all the taxes associated not only when buying but after purchase including rentals and Income tax please fill out the form at the bottom of the page to download them instantly.
