In very general terms you will need to consider adding approx 11.5% to the property purchase price to cover the purchase costs however this is variable dependent on the type of property purchased, its value and the complexity of the transaction.
Transfer Tax (ITP)
When purchasing a resale property there is an 8% transfer tax payable by the buyer (currently reduced to 7%, 2022), known in Spain as Impuesto de Transferencia de Propiedad (ITP), upto €400,000 then up to €700,000 9% and 10% above this amount. For off-plan purchases the tax is still 10% but is referred too as IVA (VAT) plus an additional 1.5% transfer tax.
If the property in question is a garage/storage or a plot of land then the tax rate is 21% and an additional 1.5% transfer tax.
Notary Fees, Land Registry, Stamp Duty
Notary fees can cost up to approximately €1.750 although the cost increases according to the number of pages or complexity of the title deed (e.g. transcription of statutes, payment in stages, property partially finished, etc.). As an example, an apartment costing €300,000 couldcost around €546 in notary fees, whilst a property costing €600,000 could cost around €678 in notary fees. Any higher than this amount, the fees go up marginally.
The property registry inscription fees also depend on the complexity of the transaction. For example, fees for an apartment costing €600.000 to be registered in the name of one person and purchased without a mortgage loan, could cost around €300. For an apartment with the same sales price to be registered in the name of 2 persons and purchased with a mortgage loan, could cost around €800.
Lawyer's fees are generally 1% + IVA of the selling price but will depend on the lawyer own fee structure and the price of the property.
Municipal Added Value Tax (Plus Valia)
This is an “added value” tax based upon the increase of the Town Hall index value of the land only, from the prior (vendor's) purchase to the present sale. It is usually not a significant amount with respect to apartments or townhouses – less than €1000 for the most part for an apartment or townhouse which last changed hands five or six years ago – but can be more in the case of villas with a large tract of land.
This tax corresponds, by its nature, to the vendor who is responsible for its payment, unless otherwise negotiated. As there are several variable factors used in calculating this tax, especially the length of time of ownership of the property, the amount payable can vary substantially and should be verified before proceeding with the purchase.