Costs when buying a house in Spain

Taxes

If the house is a resale property, the buyer must pay a transfer tax of 8% to 10% of the purchase price specified in the deed. To calculate the base amount of this tax, you take the purchase price and determine the portion that relates to the share each person is purchasing. The first 400.000 euros of each purchaser´s base is taxed at 8%, the portion between 400.000 to 700.000 euros is taxed at 9% and the portion above 700.000 euros is taxed at 10%.  

For example, if 2 people purchase 50% each of a property that costs 800.000 euros, the total transfer tax would be 64.000 euros (8% of 800.000 euros). However, if only 1 person purchases this property, the transfer tax would be 69.000 euros, which is calculated as 400.000 € x 8% + 300.000 € x 9% + 100.000 € x 10%.

If the seller is a real estate developer and the property represents a first-time transfer, then in lieu of the transfer tax, the buyer must pay VAT of 10% of the price specified in the deed. The VAT is paid directly to the vendor and a stamp duty of 1.5% must be paid by the buyer to the provincial tax authorities within 30 days of the purchase.

Fees

In addition to the taxes, there are the following fees:

  1. Notary fees for the preparation of the purchase/sale deed – They can range from 700 to 1400 euros, depending on the purchase price.
  2. Land registry for updating the title -  This fee also depends on the purchase price. It is generally less than half of what the notary charges.
  3. Legal fees - If you opt to contract a solicitor, they generally charge 1% of the purchase price plus VAT.
  4. Administrative fees – If you don´t use a solicitor or if you take out a mortgage on the property you are purchasing, then you have to pay an administrative fee to the company that collects the deeds, pays the taxes and handles the registration. The administrative fees vary depending on the price of the property and range from 595 to 895 euros.

If you get a Spanish mortgage, then there are the following fees:

  1. Notary fees for the preparation of the mortgage deed – They can range from 700 to 1000 euros, depending on the purchase price.
  2. Land registry for adding the mortgage to the title - This fee is generally around 200 euros.
  3. Stamp Duty – This is 1.5% of the total loan responsibility, which can be calculated as by multiplying the amount you borrow x 1.5 and then that amount by 1.5%. For example if you borrow 300.000 euros, the stamp duty would be approximately 6.750 euros.
  4. Administrative fees – The bank appoints this company to collect deeds, pays the taxes and handles the registration. The administrative fees, which are shared with the bank, are around 350 euros.  

We can provide you with a simulation of the exact costs depending on the price of the property you are interested in and the amount of money you plan on borrowing.