Fees payable when buying property in Spain (based on 2015 )
- ONCE ONLY PAYABLE FEES
Value added tax - VAT (Impuesto Valor Añadido - IVA)
The VAT applicable on new properties bought from a developer or builder and being sold for the first time (including a garage or swimming pool built at the same time) is 10%.
VAT for a plot of land for building (terreno urbanizable) without an immediate building project and also for the construction of a swimming pool or other sports facilities (such as a tennis court) not built at the same time as the house is 21%.
VAT on rustic land (finca rústica) is 10%.
Taxes on legal documents (Impuesto sobre Actos Jurídicos Documentados-AJD)
There is a tax on legal documents of 1%, which is levied on new properties and which is payable in addition to VAT.
Notary fees – title deed (Notario - Escritura Pública) and property registration fees (Registro de la Propiedad)
The costs of the notary who officiates at a sale and the registration fees are fixed by law and are based on a sliding scale depending on the property sale price (except when the property is a gift).
If you buy a plot of land to build a house on, you will pay a fee for two title deeds: one for the land itself and one for the construction.
Notary fees usually range from € 320 to € 900.
Registration fees usually range from € 180 to € 500.
Business administration office (Gestoría)
There are agencies that administer the payment to the notary and take care of the subsequent registration of the title deeds at the property registry.
These firms can also take care of applying for the tax identification number (NIE), which all foreigners must have in order to be able to carry out any kind of economic activity in Spain such as the purchase of a property.
It is advisable to ask for a quote before contracting these services.
A pre-payment on account is normally required. You will later be given a copy of the formal bill together with the title deeds (escritura pública) of the already registered property.
Connection and installation of housing services- electricity, gas, water: € 200 to € 450
- ANNUAL EXPENSES
Community fees (gastos de comunidad) vary according to the services available in the building and can range from € 600 to € 1,300 per year. They generally include cleaning, pool & garden maintenance, electricity, building insurance, property administrator fees and other expenses for the services that owners unanimously agree to include.
Refuse & sewage (local tax) (arbitrios municipales) between € 119 and € 195 per year (rates for 2014)
The property tax-urban rates (Impuesto Bienes Inmuebles-IBI ) is obtained by applying a rate* between 0.60 and 0.70 percent to the tax base (*rates for 2014). (The tax base is equal to half the cadastral value of the property that is updated every year, the same as the rate)