Posted on 16 April 2012
The overall purchase price of a property depends on whether it is newly built or renovated. It also depends on whether you’re buying on the spot or you’re using a mortgage. However, you should make provision for up to 12% of the purchase price to cater for the following fees:
- 8% of total cost for transfer tax (or ITP) on a property you’re reselling. This fee is uniform across all locations in Spain with the exception of Costa Blanca (except Murcia) where the transfer tax is 10%.
- €400-€900 Notary fees
- €200-€450 Land registry fees
- €1,000-€2,000 Independent lawyer fees
- €350 valuation fees and a stamp duty amounting to 1.5% of the mortgage deeds. If you’re using a mortgage, you’ll have to pay a lender’s commission that’s about 1% of capital loans.
- If it’s a new property, you’ll pay a VAT of 10% instead of an ITP.
- You’re also required to pay a stamp duty which is 1.5% of the purchase price if it’s a newly built property.
Please note that to buy property in Spain, non-residents are required to have a tax identification number known as NIE. The tax identification number must be processed before all house buying arrangements are concluded since it will be used on all tax returns and communications addressed to the tax authorities. To get the NIE, visit the General Directorate of Police.