FAQ
Frequently Asked Questions
The most frequently asked questions that buyers tend to ask revolve around the costs of a sale.
What taxes do I have to pay?
Property Transfer Tax (ITP)
Property Transfer Tax applies to second-hand homes. Currently, in Andalusia, this tax has a fixed rate of 7% of the purchase price, following the reform approved by the Andalusian Regional Government, which replaced the previous rates (8%, 9%, 10%).
Reduction of the Property Transfer Tax by 2% for real estate companies or professionals who purchase second-hand properties and resell them within 5 years.
New Construction: VAT and Stamp Duty
In the case of new-build properties, the buyer pays 10% VAT (Value Added Tax) directly to the developer, in addition to 1.2% in Stamp Duty (AJD), which has been reduced from the previous 1.5%.
capital gainsla( plusvalia)
The Tax on the Increase in the Value of Urban Land (known as municipal capital gains tax) is levied on the increase in the value of the land since the last sale. It is normally paid by the seller, but this can be negotiated between the parties. If the seller does not pay it, the buyer may become liable, as the tax may be linked to the property.
Notary fees
Notary fees are regulated by an official tariff and vary depending on the value of the property. These costs usually range from €600 to €1,200 in most cases.
Property Registration Fees
Property registration is mandatory and costs about the same as the notary fees. This expense ensures that the property is legally registered in the buyer’s name.
Lawyer fees
It is strongly recommended that you hire a lawyer specializing in real estate law throughout the process. The lawyer will verify that the property is free of encumbrances, prepare the documentation, and advise you on the associated annual and tax costs. Their fees are usually around 1% of the purchase price.
Once the process is complete, all that’s left to do is sit back and enjoy the Costa del Sol lifestyle.
What are the total costs of the sale?
in Spain, there are a number of additional taxes and costs that must be taken into account. These can add approximately 7% to 10% to the purchase price, depending on the case.