As a general rule, buyers need to consider adding 10-15% to the agreed upon sales price to pay any taxes arising from the sale.
Resale properties – Property Transfer Tax
|
Property price |
0 – 400.000€ |
400.000,01€ - 700.000€ |
+ 700.000,1€ |
|
Property Transfer Tax In Andalusia it is set at: 7% indefinite for all resale properties. |
7% |
7% |
7% |
|
Notary fees (approx.) |
0,50% |
0,50% |
0,50% |
|
Property Registration Expenses (approx.) |
0,30% |
0,30% |
0,30% |
|
Legal fees (approx.) |
1% |
1% |
1% |
|
Mortgage expenses (approx.) |
1% |
1% |
1% |
* Tip: Co-owners can benefit from a possible discount because, although the same tax rates apply, the tax base of the purchase price is calculated in proportion to the property.
** Mortgage taxes: If you buy a new or second-hand home in Spain with a mortgage, you are obliged to pay the Documented Legal Acts Tax, at a rate of 1.5%, on the maximum liability covered by the mortgage (loan principal, interest and legal costs in case of non-payment).
New properties (usually from a developer)
Buyers have to pay VAT at a flat rate of 10% on newly built properties. Whenever VAT is due, buyers also have to pay Documented Legal Acts Tax at 1.5%.
|
IVA |
10% |
|
Tax on Documented Legal Acts (AJD) |
1,2% |
|
Notary fees (approx.) |
0,5% |
|
Property Registration Expenses (approx.) |
0,30% |
|
Legal fees (approx.) |
1% |
|
Mortgage expenses (approx.) |
1% |
When do I have to pay these taxes?
All taxes derived from the sale of a property in Spain must be paid within 30 business days from the date of signing the public deed. Failure to comply will result in buyers being charged an additional 20% in penalties and interest on top of the amount owed.
