Below is a breakdown of the purchasing costs involved in a property transaction in Spain. Made up of taxes and the fees of the notary, lawyer and if necessary your mortgage provider, it has been standardised here. While individual cases may vary the example below provides a good idea of the processes and costs involved.
- 10% IVA (VAT) on new properties OR 8%-10% Transfer Tax (ITP) on resale properties
- 1,5% Stamp Duty – applicable to new (first occupation) properties only
- Notary fees, title deed tax and land registration fee 1–2.5%
- 1% to 2% Legal Fees
- 1%-3% Mortgage Commission, where financing has been arranged through a lawyer or mortgage broker
The above percentages are calculated against the purchase price of the property.
- IBI (Municipal Property Tax) – this figure varies according to property and area
- Municipal Garbage Collection Fee – as above
- Community Fees – apply when the home is part of a community of properties, as is normally the case with apartments and townhouses, and occasionally also villas. It is used to cover the costs of maintenance, gardening, swimming pools and other communal parts of the complex, and is set by each individual community
- Utilities (water, electricity, gas, telephone and internet fees) are paid according to use
- Mortgages – FM Properties is a preferred partner of many of the leading financial institutions and mortgage providers in the market, including Sol Bank-Banco Sabadell, Nykredit, Barclays, Deutsche Bank, Halifax, BBVA, Banco Santander and many others. We can provide you with information and practical assistance when it comes to opening bank accounts and applying for financing
At FM Properties we keep comprehensive dossiers about the homes we offer for sale, so we are able to provide you with the exact figures for the above rates on each property.
Fortunately the annual municipal rates in Spain are among the lowest in Europe.