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How to buy or sell property in Spain

This article is about costs of buying and selling property in southern Spain - Andalusia and Costa del Sol.

Purchasing property in Spain has been popular for many years and will continue to be so. There are numerous reasons for this which include the wonderful climate, enviable lifestyle and strong international travel connections.

 

FOR BUYERS

1. Taxes and VAT

  • If you are buying a new property, i.e. you are the first owner: 10% VAT + 1.5% stamp duty (actos jurídicos documentados or AJD)

  • If you are buying a resale property, i.e. from an existing owner: property transfer tax (impuesto de transferencia patrimonial or ITP) which varies from 8-10%

         - if the selling price is under €400 000 = 8%

         - if the selling price is between €400 000 and €700 000 = 9%

         - any price above = 10%

  • if you are buying land on which you will build a property, normal Spanish VAT applies: 21%

2.  notary costs: around 1% + VAT

3. land registry costs: around 1%

4. legal fees 1% + VAT of the selling price with a minimum of €1500 and a maximum of €5500

For example:

Price of the property   200 000

ITP                                    16 000

Notary fees                       2 000

Registry fee                          700

Legal fees                          2 000 

TOTAL PRICE:                220 700

 

FOR SELLERS

1. The real estate commission, which is always included in the selling price.

2. Capital gains tax (Plusvalía or IIVTNU) i.e. the tax paid on the profit of the house.