Spain

Comprehensive Guide to Property Purchase Costs in Spain

Essential Guide to Property Purchase Costs in Spain

  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

Agencia Tributaria

The office responsible for property tax collection in Spain is still the Agencia Tributaria (Tax Agency). They handle various taxes, including property taxes.

The website offers information on property taxes, including rates, calculation methods, and payment procedures. You can find property tax information for “Impuesto sobre Bienes Inmuebles”.

Note: The website is available in both Spanish and English.

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