Costs Involved in Purchasing Property in Spain
When buying a completed residential property, the total official expenses typically range from 10–11% for resale homesand approximately 12% for new-builds, assuming VAT applies to the purchase price. These percentages are in addition to legal fees.
Transfer Tax (ITP)
This tax is paid by the buyer when acquiring any type of real estate—such as homes, land, commercial units, or parking spaces—as long as the seller is not a property developer or engaged in the regular resale of properties (where VAT would instead apply).
- 7% for all resale properties.
- 2% for real estate firms or professionals purchasing resale property, provided it is resold within five years.
VAT (IVA) and Stamp Duty (AJD)
If the seller is a developer, promoter, or someone regularly selling new properties:
- For brand-new homes or attached garages: 10% VAT + 1.2% Stamp Duty.
- For land or first-time sales of commercial units: 21% VAT + 1.2% Stamp Duty.
Notary and Land Registry Fees
These charges vary depending on the value of the property and the length or complexity of the title deed
Estimated cost: around €3,000.
Legal Fees
Legal representation typically costs about 1% of the purchase price, subject to VAT and depending on the lawyer and property value.”
