Purchasing Costs to Consider
The various cost that you will need to consider are the following:
Transfer Tax on Second Hand Properties
If you are buying a resale property then the purchase is subject to the Spanish ITP Tax (Impuesto sobre Transmisiones Patronales). This is a transfer tax and depends on where the property is located. The current rates is 7% on the purchase price of the property (having been reduced from a sliding scale of 8 – 10%).
New Development VAT & AJD
IVA: If you are buying a property off-plan or a new development then, instead of the ITP at 7%, you will pay VAT (IVA in Spanish) at 10%.
AJD: You will also have to pay a form of stamp duty called AJD (Impuesto sobre Actos Juridicos), which is based on the fact that the property needs to be registered and is a fee on the first registration of the property. It is 1,2% in Andalucia.
Legal Fees
Lawyers generally tend to charge a fixed fee for conveyance of 1% plus VAT.
Notary & Land Registry
Completion is normally done at the notary public, where the parties sign in front of the notary. The buyers pay the sellers and the sellers hand over they keys. It is at this moment the buyers takes possession.
Whilst optional, but highly recommended, the notary will then contact the land registry to register the sale of the property.
The various fees charged by the notary and land registry vary depending on the nature of the sale, but in general we advise clients to consider 1% of the purchase price.
Note: This information is given as guidance only and does not substitute professional legal advice that should be taken before entering into any contractual agreements as costs and fees do change over time.
DO YOU HAVE A QUESTION?
Ricky Bache
Estate Agent
B.Sc Economics
(HEC Lausanne )
Asesor Credito Hipotecario
(UPV Valencia)
Tel : +34 609 50 22 44
ricky@marbellaconnect.com
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