Property Purchase Costs

Property Purchase CostsTRANSFER TAX (I.T.P.)
Payable by the buyer for the purchase of any Real EState (Land, Flat, Flats, Garages, Commercial Premises) provided the vendor is not a developer or normally trading in the business of resale properties. If the “minimum fiscal value” of the property as per the Regional Goverment, is greater than the price, then the minimun fiscal valuation applies: 8% is applicable up to the amount of 400.000 Euros or 30.000 Euros in the case of garages except those those belonging to the dwelling and with a maximum of two: 9% is applicable to the amount between 400.000 Euros and 700.000 Euros or between 30.000 Euros and 50.000 Euros for garages; 10% is applicable to the amount excceding 700.000 Euros or 50.000 Euros for garages.

VAT AND STAMP DUTY.
– Villas, apartments, or a garage that is annexed to an apartment or villa, where the vendor is a developer, promoter or habitual trader for brand-new properties. (10% +1,5%).
– First sale or resale of parcels of land, and for the first sale of brand-new commercial premises where the vendor is a developer, promoter or habitual trader or a company. (21% + 1,5%).

NOTARY AND PROPERTY REGISTRY FEES.
The cost increases according to the complexity of the title deed or the number of pages, and value of the property. (+/- 3.000 Euros).

MUNICIPAL ADDED VALUE TAX (PLUSVALIA).
This could be vary from a few hundred to thousand euros depending on the the land of the property or a property that has not changed hands in many years. It is a tax by the town hall based upon the increase in the index value of a property between the year of purchase to the year of sale. This Tax corresponds to the vendor who is responsible for its payment.

LAWYER S FEES
These are around the 1% of the selling price, depending on the lawyer and the price of the property.

SUMMARY.
The total official costs involved in purchasing a constructed residential property should be around 12% for new Properties For Sale in Spain or around 10-11% for resale properties if VAT is paid on the purchase price, plus lawyer´s fees.

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