Costs of Buying a Spanish Finca

The costs for buying a property in Spain can be broadly taken as 11% of the declared price.

Quite often it is less than this but if you budget for this figure you are unlikely to get any nasty surprises.

The additional costs involved, including taxes and stamp duty, are summarised below. These will vary according to the type of property and region.

New Properties

VAT (Impuesto sobre el Valor Anadido / IVA). 7% plus the stamp duty of 1% of declared price.

Resale Properties

Transfer Tax (Impuesto de Transmissiones Patrimoniales / ITP). Usually 6% or 7% plus 0.5% tax for transferring property to your name.

Lawyers Fee

Normally 1% of purchase price + 16% IVA.

Notary Fees

In the same way the purchase has to be inscribed in front of a notary, the mortgage deed must also be inscribed and the notary will make a charge for this.

Law establishes these costs as a percentage of the mortgage liability and as such 67.61 euro plus between 0.0338% to 0.023%.

Property Register Fees

These costs also are established as a percentage of the mortgage liability and are 18.03 euro plus between 0.131% to 0.015%.

Bank Arrangement Fees

Normally between 1% to 1.5% of the mortgage amount.

Valuation Fees

Paid to bank. Based on sliding scale and calculated as a percentage of the valuation, it is normally in the region of 300 to 700 euros. For larger properties the rate can become 1% of the valuation.

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