Taxes and Fees

As a rough rule of thumb the total costs and taxes combined for a property purchase without a mortgage will be around 10% of the agreed property purchase price.  With a mortgage they could increase to anything from 11% to 15% depending on your individual situation.

Your property conveyancer or solicitor can give you an itemised  breakdown of all of the relevant taxes and fees to purchase.

PROPERTY TRANSFER TAX (Impuesto de Transmisiones Patrimoniales - ITP)

This is 7% of the value of the property as declared in the contract where private property sales are concerned. (For property priced at 400000 euros or more ITP is 8%).  This must be paid within one month of the Notary date.

If you are purchasing a property from a builder/developer then IVA at 8% is payable instead of ITP. In addition to the IVA there is a first registration stamp duty (document fee) of 0.50% in Murcia and 1% in Andalucia making the total 8.5% or 9% respectively when purchasing from a developer.

Plus Valía is another tax you will hear mentioned when buying property. This is a tax for the seller to pay but if this is not paid then this tax can subsequently become a charge against the property meaning the buyer has to pay!  Many conveyancers now prefer to with-hold this sum on completion and pay it direct to avoid this complication.

NOTARY (NOTARIO) FEES

This is a fixed fee according to an official scale and based on the property size and purchase price.

PROPERTY REGISTRY (Registro de la Propiedad)

This is the fee for the inscription of the property in to your name at the official Property Registry and is also a percentage figure based on the property price

SOLICITOR (ABOGADO) / CONVEYANCER FEES

Solicitors fees vary - from 1% of the property purchase price upwards and depending on the amount of work involved.  Many solicitors charge according to the Colegio de Abogados fee structure so do ask for a written quote before engaging them.