Expenses of Buying a Property in Spain

How much does it cost to buy a property in Spain?

Invest in SpainIf you are interested in buying a property in Spain, you will find here important information about the costs involved in buying. We recommend reading these details carefully so you can envisage all expenses apart from the purchase price. In general, an additional cost of buying real estate in Spain is between 11 – 14% of the sales price. The price is based on a few factors therefore the difference in value. The status of the property, the fact that is newly built or resale has a first impact on the costs. Secondly, different municipalities apply various tax policies, therefore the costs may vary from region to region.

VAT (IVA):

When you buy a Spanish property, the biggest cost you need to take into consideration is VAT (IVA in Spanish). There are two values depending on the property type. If you buy a newly built property, directly from the construction company, you will need to pay VAT at 10% of the purchase value. In addition, 21% of VAT applies on commercial and land purchases (also in cases when the parking area is considered as a commercial property due to its separate title deed).

Property Transfer Tax (ITP):

In the case of resales, the new owner must pay a Property Transfer Tax (ITP in Spanish) which is around 7% of the price of the property. However, this value may change incoherence to different regulations in autonomous regions.

Stamp Duty (AJD):

The property buying costs in Spain involves also Stamp Duty (AJD in Spanish) which is around 1%. However, this tax can also vary from one region to another, depending on regulations.

Legal Assistance:

If you are interested in buying a house in Spain, we highly recommend you hire a lawyer who will assist you during the purchase process. A legal expert can collect all necessary documents and provide you with all necessary information regarding the expenses. Moreover, we advise you to allow your legal consultant to act on behalf of you in all administrative steps without your physical presence. For that, you may give a Power of Attorney to your lawyer and he will arrange all legal steps for you.

The approximate value of legal fees varies from € 1.000- 3.000; however, some lawyers set the payment founded on a certain percentage of the purchase value.

Notary:

While buying a property in Spain you will also have some expenses related to Notary which is usually around 1000 €. The Land Registry accepts only purchase contracts signed in the Notary office.

Land Registry:

In general, the Land Registry costs approximately 750 €.

Mortgage and additional costs:

If you decide to buy Spanish property and take a loan in Spanish banks the notary costs will increase, and other payments will have to be done:

  • Appraisal Report: The banks always require the property value report prepared by an authorized valuation company. The costs of the appraisal report vary from one valuation company to another and is generally € 250-450. The bank grants a loan incoherence only to the value stated on the appraisal report.
  • Disbursement Fee: The commission charges depend on the bank; therefore we recommend making suitable research. This cost may vary from 0% to 2%.

We would like to underline that the above-mentioned expenses may vary in accordance with region, property type whether you chose an apartment in Spain or a villa, sales price, etc. Therefore, we recommend you cooperate with a reliable real estate agency so we will be provided always with the most updated information.

TERRA Real Estate® International Estate Agency

Member of The AIPPJust choose where to buy property in Spain in coherence to your budget, your lifestyle, and expectations.

When you have decided to buy real estate in Spain, make sure that you have a reputed estate agency with good references and experience. TERRA Real Estate is a committed business member of the Association of International Property Professionals (AIPP) and is regulated by the Property Ombudsman.

Since 2004, we specialise in the representation of foreign nationals and International clients in the buying and selling of properties abroad with a specific focus of resort and holiday style properties located in Turkey, Northern Cyprus, Spain and Florida.

Interested in property purchase in Spain? Having a matter related to the real estate market in Spain? Please feel free to contact us for any inquiries regarding places to buy Spanish properties. 

Are you in Spain now and want to see the properties?

For arranging a property viewing in Spain:

  • Call us at +90 242 512 25 00
  • E-mail us
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We will be happy to come to your accommodation/hotel and pick you up for free and non-committal viewing.

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