When purchasing a resale property there is an 8% transfer tax payable by the buyer, known in Spanish as Impuesto de Transferencia de Propiedad (ITP) for properties located in Andalucia with a price up to €400,000. Higher Values are taxed at a higher rate.
For off-plan purchases a fixed rate of 10% but is referred to as IVA (VAT). In addition A.J.D (Stamp Duties) are payable and is calculated at a rate of 1.5% in Andalucian Communities.
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 will cost around €546 in notary fees, whilst a property costing €600,000 will 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, will 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, will cost around €800.
Lawyer's fees are in the region of 1% of the selling price. This will vary dependent on the price of the property and the level of service provided by your appointed lawyer.
Municipal Added Value Tax (Plus valía)
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.