Buying a property in Spain: taxes and charges
Introduction
Buying a property in Spain is becoming increasingly popular with French speakers, whether as a second home, a year-round residence or a rental investment. However, it's essential to consider not only the purchase price, but also the associated costs. In Spain, taxes and charges can account for between 12% and 14% of the price of the property. Here is a breakdown of the main items to plan for.
1. Taxes at the time of purchase
- VAT (IVA): for a new home, this amounts to 10% of the sale price.
- Impôt sur les transmissions patrimoniales (ITP): for older homes, this varies between 6% and 10% depending on the region.
- Acte Juridique Documenté (AJD): tax applicable when the property is entered in the register, averaging around 1%.
2. Notary and registration fees
In Spain, a notary is compulsory. Their fees are regulated and generally vary between 0.5% and 1% of the purchase price. To this must be added the costs of registering the property, which are around €400 to €800.
3. Solicitor's fees
Although not compulsory, the services of a specialist lawyer are strongly recommended to ensure a secure transaction. You should expect to pay between €1,000 and €2,500, depending on the complexity of the case.
4. Bank and mortgage charges
If you are financing your purchase with a mortgage in Spain, you should expect to be charged for opening the file (0.5 to 1% of the amount of the loan), as well as for valuing the property (around €300 to €500).
Conclusion
When buying a property in Spain, you need to calculate your budget carefully. On average, you need to add between 12% and 14% in ancillary costs to the stated price of the property. Good preparation will help you avoid unpleasant surprises and bring your property project to fruition with peace of mind.
