Taxes on buying property in Spain

Taxes on buying property in Spain

Taxes and expenses related to the purchase of the real estate in Spain

If you purchase primary real estate in Spain, (it means a new property from a developer), you need to pay the Spanish Treasury - Value Added Tax (VAT), in the amount of 10% of the value of the property. Since it is the seller who transfers this money to the tax authorities of Spain, VAT must be paid immediately when signing the bill of sale.

Another tax is a STAMP DUTY, (or a tax on documentary legal actions).

This tax is paid by the buyer and ranges from 0.1% to 2% of the value of the property (depends on the autonomous region, which the property is located in). Now we are going to move further from taxes to "additional expenses" when purchasing the real estate in Spain!

Notarial expenses. The amount of notarial expenses depends on the cost of accommodation (and officially fixed tariffs of notaries).  The cost of notarial services depends on the particular notary. On average, from 600 to 1000 euros.

Registry costs, associated with the registration of the deeds of sale of the real estate in the "Property Registry of Spain" and are also paid by the buyer.  And their amount is on average from 300 to 500 euros (depending on the autonomous region, which the property is located in).

Also, in order to avoid potential debts for a mortgage (or taxes) from the previous owners of your chosen property, it is recommended to "check the status of this accommodation". This document is requested in the "Property Register of Spain" and is called Nota Simple.  It indicates all the necessary data about your chosen property and about the previous owners. These check costs are about 10 Є.

So, to sum it up, here is a list of taxes and expenses related to the purchase of the primary real estate in Spain:

  • VAT (10% of the value of the property);
  • Stamp duty (from 0.1% to 2% of the value of the property);
  • Notarial expenses (from 600 to 1000є);
  • Registry costs (from 300 to 500є);
  • Expenses for checking the status of the property (up to 10 є).

So, this is a list of taxes and expenses related to the purchase of the PRIMARY real estate in Spain. Well, now, let's look at the list of the taxes and expenses, related to buying the SECONDARY real estate.

In the case of purchasing the SECONDARY real estate in Spain, in another words resale property, we need to consider the “TRANSFER TAX OF OWNERSHIP”. This tax is paid by the buyer. It ranges from 6 to 10% of the value of the property (depending on the region).  This tax must be paid within a month, and an approval of payment is required for registration of the transaction in the appropriate "Property register of Spain".  

Also, the notarial and registration expenses, which we have already mentioned earlier, considering the purchase of the PRIMARY real estate, remain unchanged.                    
So, to sum it up, here is a list of taxes and expenses related to the purchase of the secondary real estate in Spain:

  • Transfer tax of ownership (from 6 to 10% of the value of the property);
  • Notarial expenses (from 600 to 1000 є);
  • Registry costs (from 300 to 500 є);
  • Expenses for checking the status of the property (up to 10 є).

If you need more detailed consultation on buying property in Spain, don't hesitate to contact WTG Spain!  We will be happy to answer all your questions!

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