When buying property in Spain, it is important to be aware of the taxes and expenses that will need to be paid. They will vary slightly depending on what market you are buying housing in – primary or secondary. For example, if you purchase a primary property, you will need to pay Value Added Tax (VAT) to the Spanish Treasury, but if you purchase a secondary property, you will need to pay a tax on the transfer of property rights.
1. In case of purchasing primary real estate in Spain
- When purchasing property from a developer, you must pay Value Added Tax (VAT) to the Spanish Treasury in the amount of 10% of the property value. Since it is the seller who transfers this amount to the Spanish tax authorities, VAT must be paid immediately upon signing the bill of sale;
- Another tax is stamp tax, or tax on documentary legal actions. This tax is paid by the buyer and ranges from 0.1% to 2% of the value of the property (depending on the autonomous region in which the property is located);
- Notary expenses. The amount of notary expenses depends on the cost of housing (and officially established notary fees). The cost of notary services depends on the specific notary. On average from 600 – 1000 €;
- Registration costs associated with registering a real estate purchase and sale transaction in the Spanish Property Registry. Also paid by the buyer, and their amount averages from 300-500 € (depending on the autonomous region in which the property is located);
- To avoid possible mortgage or tax debts from the previous owners of your chosen property, it is also recommended to check the status of this property. This document is requested from the Spanish Property Register and is called Nota Simple. It contains all the necessary information about the property you have chosen and about the previous owners. The cost of this check is approximately 10 €.
2. In case of purchasing secondary real estate
In the case of purchasing secondary real estate in Spain, we need to consider the tax on the transfer of property rights. This tax is paid by the buyer. It ranges from 6 to 10% of the property value (depending on the region).
- Notary expenses (from 600 to 1000 €);
- Registration costs (from 300 to 500 €);
- Costs for checking the status of the object (up to 10€).
If you need more detailed advice on purchasing real estate in Spain, please contact WTG Spain . We will be happy to answer all your questions.
After purchasing the property, you will need to pay for re-registration of utility bills (water, electricity, communidad) – approximately 300-400 euros
Apartment contents:
- Payment for the community (cleaning the area, cleaning the pool and other services) is established by the annual meeting of residents and ranges from 150 to 1000 euros per year.
- Payment for water and electricity is by meter.
It is also necessary to pay a subscription fee for water supply (about 15 euros per quarter) and electricity (about 16 euros per quarter). These payments must be made even if no one lives in the apartment.