Buyers guide to Spain - Extra Costs over and above the purchase price
Buyers guide to Spain
IVA and Stamp Duty - New Property
New Properties purchased from a developer incur an IVA (VAT) charge at the rate of 7% of the declared sales value.
An IVA rate of 16% is applicable when purchasing plots of land, commercial premises or garage spaces.
Stamp Duty is also payable on new properties at an additional 1%.
Transfer Tax (ITP) - Resale Property
Resale Properties normally incur a Transfer Tax which equates to 7% of the purchase price. Transfer Tax is not applicable on new properties. Resale properties incurs Transfer Tax but not IVA or Stamp Duty.
Land Registry Fees
To register a property at the Land Registry expect to pay, as a guideline, 60% of the what the Notary charges.
Notary fees
The scale is fixed by law and may range from 300 Euros for lower priced properties to 840 Euros for higher priced properties.
Legal Fees
These will vary but allow between 1 – 1.5 per cent of the declared purchase price plus IVA (VAT) on the fee amount (currently at 16%).
Sundry Expenses
You should budget at £200 to cover miscellaneous items such as fees for carrying out searches against the property at the Land Registry and Town Hall and also bank charges.
Power of Attorney
If you are not able to appear before the Notary in person for the signing of the Escritura (Title Deed) you will need to authorise someone, such as your lawyer, to appear on your behalf by means of a power of attorney. The charge for this service is generally in the region of £125-£150 plus additional adhoc fees.
Our International division will be able to answer any of your questions regarding the practicalities of living in Southern Spain as a holiday destination, or when considering the area as a viable base for business, retirement or any other type of full time relocation.