Extra Costs over and above the purchase price
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. |
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