Buying Property in Spain

BUYERS GUIDE

Once you’ve found the property you want the first step is to place a reservation deposit, of which the minimum amount will be 10% of the total price on signing a private contract. 

A reservation deposit secures a particular property for you and takes it off the market so no-one else can take it from you. For this reason it’s best that you place the reservation fee as soon as you can after making your final decision

Throughout this period we will be constantly available to answer any questions and oversee the smooth running of your purchase until completion.

A GUIDE TO THE EXTRA CHARGES

As a general guide the total of all the extra charges amounts to 10-12% of the purchase price.

THE FEES

Legal fees: These are normally charged at 1.0% of the purchase price and are subject to VAT.

Notary fees: Fixed by law and linked to the purchase price. You should budget between 300 euros to 1,000 euros.

Land Registry fees: Fixed by law and are approximately 60% of the Notary fees.

THE TAXES

The taxes payable vary in accordance with the type of property being purchased.

New Properties:

VAT – currently @ 7% of the purchase price and payable with each instalment.

Stamp Duty – currently @ 1% of the purchase price and payable on completion.

 Plots of Land:

 VAT – currently @ 16% of the purchase price and payable with each instalment.

Stamp Duty – currently @ 1% of the purchase price and payable on completion.

 Resale Properties:

 Transfer Tax – currently @ 7% of the purchase price and payable on completion.

 Plus Valía:

 This is a one-off tax levied by the Local Authorities and is calculated by reference to the increase in value of the land since the last sale of the property. For most purchases this tax will amount to only a few hundred euros and is normally payable by the vendor.