Finding the ideal home at the right price, or an attractive investment in Spain, fills us with excitement and hope. However, when we buy a property we not only have to look at the actual selling price, but also at all the additional expenses such as taxes and fees. This way we can make a more realistic calculation of the total costs, and thus avoid unpleasant surprises.
Here is a simplified breakdown of the main fees and taxes you have to bear in mind:
Fees
Notary Public fees
In Spain, all property purchase deeds must be signed in front of a notary public.
The government sets their fees; so all notaries in Spain charge the same amount for an identical service (although they are allowed to apply a discount of 10%).
The total fees will depend on the number of clauses in the deeds and the declared value of the property: a rough estimate would be 600? to 1000?.
If you signed for a mortgage then you will have to pay notary fees on the mortgage deeds as well.
Property Registry fees
After signing, the deeds have to be registered in Spain’s Property Registry, and you have to pay another fee to get this done. Usually the notary’s office will take care of this step; the fees charged are also standard and depend on the declared purchase price declared in the deeds. In most cases they range from 400? to 650?.
Taxes
Which taxes you have to pay will depend on whether you purchase a new build or a pre-owned property.
Newly Built
When you buy a new-build residential property, you have to pay the Value Added Tax (VAT, or IVA in Spanish), which ascends to 10% of the purchase price. For commercial properties a 21% rate is applied.
Pre-owned
When buying a second-hand property, you have to pay the Property Transfer Tax (ITP in Spanish), which varies from region to region. In Madrid, for example, you would pay a 6%; in Andalucía 8%, and Catalonia 10%. However there are reductions in most Autonomous Communities for younger buyers and families with 3 or more children.
How can Property Buyers by Somrie help you?
The above is just a quick rundown on the main fees and taxes you have to know about to be able to estimate the total cost of a purchase. However, the amounts can vary and there are others that might apply in your particular case.
If you want to make sure your transaction runs smoothly, with legal safeguards and no headaches, your best bet is to hire a professional who looks out for your best interests. An Property Buyers by Somrie agent will do just that!
Would you like to know what we do and what are some other advantages of hiring us? Read this!
If you want to find the house of your dreams in Madrid, get in touch with Agnes Csomos. She will be dedicated exclusively to helping you.
