The Costs of Buying Property in Spain

Good to know

Spain is a popular destination for foreign buyers, and for good reason. The country offers a beautiful Mediterranean climate, a rich culture, and a relatively affordable cost of living. However, before you start house hunting, it’s important to be aware of the costs involved in buying property in Spain.

The total cost of buying a property in Spain will vary depending on the type of property, the location, and the size. However, you can expect to pay between 10 and 15% of the purchase price in taxes and fees.

The main taxes and fees involved in buying property in Spain are:

- Transfer tax (ITP): This tax is paid by the buyer and is calculated as a percentage of the purchase price. The rate of ITP varies depending on the autonomous community (region) where the property is located.
- VAT (IVA): This tax is only payable on new build properties and is calculated at 10% of the purchase price.
- Stamp duty (AJD): This tax is payable on all property purchases and is calculated at 1.2% of the purchase price.
- Legal fees: Legal fees can vary depending on the complexity of the transaction, but you can expect to pay between 1 and 2% of the purchase price.
- Notary fees: Notary fees are typically around 0.7% of the purchase price.
- Property registration fees: Property registration fees are around 1.5% of the purchase price.

In addition to these taxes and fees, you may also need to pay for other costs, such as:

- Mortgage fees: If you are financing your purchase with a mortgage, you will need to pay mortgage application fees, valuation fees, and legal fees.
- Homeowners insurance: Homeowners insurance is not compulsory in Spain, but it is strongly recommended.
- Property taxes: Once you own a property in Spain, you will be liable for property taxes. The amount of property tax you pay will vary depending on the value of your property and the location.

It is important to factor in all of these costs when budgeting for your property purchase. By doing your research and planning ahead, you can avoid any surprises and ensure that you are prepared for the financial commitment of buying property in Spain.

If you are a foreigner and are interested in buying a property in Spain, it is important to be sure of all the associated costs. In Roel Homes we got our own property advisors, ready to help you with whatever you need in this process

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