Purchase-related expenses

In Spain Basic taxes:

  • When buying new property, 10% of VAT developer;
  • When buying property on the secondary market, 10% of VAT goes to the state as conveyance tax;
  • VAT on buying garages, commercial properties or land plots without constructions is 16%;
  • There is additional 1% state fee on VAT transactions.

Also, all buyers have to pay notary fee and title deed registration fee.

In other words, total expenses related to buying real estate in Spain can amount to 13-14% of the price of the property (residential) or even 18-19% (garages, commercial properties or land plots without constructions). The expenses will get even hire in case you ask for mortgage.

Mortgage application expenses:

  • Up-front banking commission — usually 1-2% of the total sum;
  • Property evaluation fee — circa 0.1% of its value;
  • Notary fee — depends on a number of factors; determined individually;
  • Registration fees — about 1.7% of the mortgage sum.

Added to the expenses listed above, this will cost you extra 15-16% on residential property or 19-20% on other property types.

We would like to mention that these calculations include our service fee (approximately 1% of the property value), covering all kinds of legal support:

  • Evaluating statutory compliance of the contract;
  • Checking property registry databases for clean title;
  • Preparing the full set of documents necessary to sign the title deed in the presence of a notary and checking the seller for unpaid debts or other encumbrances on the property;
  • Full legal support of the deal.