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First Line Spanish Properties
Costs of buying Spanish Property |
What are the costs of buying Spanish property?
The costs of buying your Spanish property, including legal fees and taxes, are on
average about 10% of the purchase price.
This may vary depending on your lawyer's charges, the notary fees and the level of the
"plus valia" (similar to capital gains tax charged on the increase in the
value of the property since it was last sold).
The fees and taxes are made up of
several charges, and we will help you throughout every stage of
this process.
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Lawyers Fees
Lawyers' fees are usually between 0.6% and 1% of the sale price plus the
charges for any official documentation. We can help you find a lawyer with a
reputable practice or a firm based in your home country with a
good reputation and experience in the local market.
Fees and Taxes
There are two fees and two taxes which must be paid on
the transfer of the deeds. We will advise you when these taxes become
due.
The fees are for the notarisation of the deeds and for
their registration. The law states that the notary fees should
be split between the purchaser and the vendor, and the registry fees
should be paid by the purchaser, but in practice the purchaser usually
pays all of the charges arising from the transfer.
The two taxes are dependent on who is selling the
house. If the vendor is a company, VAT of 7% is levied on the declared
price plus a half percent stamp duty. If a company sells the land
only, VAT increases to 16%.
On private sales a tax called Patrimonial Transfer is
levied, generally 6%. By law this must be paid by the purchaser. The
second tax is the plus valia. New constructions are usually sold free of plus
valia.
It's common in Spain to under-declare the value to lower the amount of plus valia. However, the tax
authorities are clamping down on what has previously been an acceptable
tax dodge - so we will give you proper advice.
Local town halls can charge a tax on the increase of the
value of the land since the previous sale. This is based on calculations
and values determined by the town halls and can vary between zero and two
thousand euros. Some town halls levy this tax, but some do not. By law,
this tax is the vendor's responsibility, though frequently sales contracts
require that the purchaser pays it.
Click here if you would like more information about buying property in Spain.
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