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Costs of buying property

Costs of buying property in Spain

Whether you buy an apartment, a villa or a finca, you will be faced with purchase costs in Spain; costs and charges you pay on top of the purchase price of your property. Examples of these purchase costs are taxes, lawyer fees and notary costs. On this page you will find an overview of the costs of buying property in Spain. Do you wish to know which recurring expenses you will have after you have bought a property? Then click here for information about housing expenses in Spain.

Purchase costs in Spain

Take into account that the additional costs of buying property in Spain amount to approximately 12% of the purchasing price. These costs are made up of the following components:

  • Transfer tax on existing builds. The largest part of the costs consists of transfer tax, in Spanish the ‘impuesto de transmisiones patrimoniales’. In Andalusia you will pay 8% transfer tax up to a purchase price of € 400,000, 9% between € 400,000 and € 700,000 and 10% above  a purchase price of € 700,000.
  • VAT on new developments. For new developments you don’t pay transfer tax, but VAT (in Spanish ‘iva’ or impuesto sobre el valor añadido). If you buy a new property from a property developer you pay 10% VAT.
  • Notary. The notary fees amount to 0.6% to 1% of the value of the property. This for instance depends on the number of pages of the deed.
  • Land registry. For registration in the ‘registro de la propiedad ‘ you pay 0.3% to 0.7% of the purchase price.
  • Lawyer. A lawyer is needed to investigate whether there are any unpaid debts resting on your property and if all permits are in order. For this a lawyer will charge approximately 1.5% of the purchase price.
  • Mortgage. The costs of opening a mortgage are 1% to 1.5% of the mortgage amount. In addition you will have to pay notary and registry fees for the registration of your mortgage. Therefore, the total additional costs are about 2.5% of the mortgage amount.

When do you pay what?

If you have found a property you wish to buy, it is customary to have it taken off the market by signing a reservation contract. You then pay a deposit (depending on the purchase price you usually pay 3,000 euros to 6,000 euros) and the estate agent who sells the house then takes the property off the market. This gives your lawyer time to examine if everything is in order. Once you are sure everything is in order you will go to the notary, where you pay the remaining amount (your deposit will then be deducted from the purchase price) and the property will be transferred onto your name.

Who pays the real estate agent?

As a purchaser you pay no estate agent fees in Spain. These costs are paid by the seller of the property. The real estate agent who guides you through the purchase process shares in the commission of the estate agent who sells the house. If you buy a new development property, you also don´t pay any estate agent fees.