1. Initial Deposit and Additional Expenses

• Spanish banks typically finance 80% of property value for primary residences.
• Buyers must save 20% on deposit
• An additional 10-12% is recommended for fees and taxes
• Total savings needed: 30-32% of property value

1. Essential Fees and Taxes a) Property Transfer Tax / VAT

• Resale properties: 6-10% (varies by region)
• New properties: 10% VAT (7% IGIC in Canary Islands)
• Subsidized housing: 4% VAT (varies by region)

b) Stamp Duty (IAJD/AJD) (Impuesto de Actos Jurídicos Documentados)

• Applies to new builds
• Typically 1-1.5% of property price
• Varies by Autonomous Community

c) Notary Fees

• Regulated by state
• Range: 600-875 euros
• Examples:
  • 100,000 euro property: ~850 euros
  • 250,000 euro property: ~1,000 euros

d) Land Registry Fees

• Fixed by regulations
• Range: 400-700 euros
• Based on the property price

e) Legal Fees

• Recommended: 1-2% of property price
• For handling legal aspects of purchase

1. Additional Costs to Consider

• Mortgage fees
• Real estate agent commission
• Property survey
• Utility connection
• Home Insurance

1. Regional Variations

• Tax rates and fees may vary by Autonomous Community
• The Canary Islands have a different tax structure (IGIC instead of VAT)

1. New vs. Pre-owned Properties

• New properties incur higher taxes (VAT + Stamp Duty)
• Pre-owned properties are subject to different tax structure

1. Importance of Budgeting

• Essential to account for all expenses
• Consult local professionals for accurate, personalized information

1. Payment Timing

• All fees and taxes must be paid before property ownership transfer