Congratulations on your decision to purchase a property in Spain! With stunning beaches, ancient cities and heritage of amazing art, history, culture, food and wine, Spain remains one of the world’s most popular travel destinations. While the market has rebounded in recent months, property in Spain is still a great value for money whether you are looking for a holiday home to enjoy with the family or a primary residence to relocate to or an investment.
As the buyer, you will be responsible for certain costs beyond the purchase price. Gran Alacant Properties has created this quick list to help you better understand your costs. We recommend budgeting an additional 13-15% to cover everything. Have more questions? Want to get started on your search? Call us at +34 966 699 441 or email us at firstname.lastname@example.org today!
Impuestos Sobre Transmisiones Patrimoniales (ITP)
if you are buying a pre-exisiting home you will have to pay the Impuesto sobre Transmisiones Patrimoniales or ITP. This is a transfer tax assessed by the regional government. The rate can vary depending the part of the country you are in. Here on the Costa Blanca, we are part of the Valencian Community and the ITP is 10%.
Impuesto Sobre el Valor Añadido (IVA)
If you are buying a new build property, you will have to pay Impuesto sobre el Valor
Añadido or IVA of 10%. This is the equivalent of the VAT.
Impuesto de Actos Jurídicos Documentados (AJD)
The Impuesto de Actos Juridicos Documentados or AJD is equivalent to a stamp duty on new build property. Here on the Costa Blanca this is 1.5%.
The formal signing of the new deed takes place at the notaria or notary’s office. The notary oversees the transaction, verifies everyone’s identity, checks the status of property and ensures everyone understands the transaction. He is there for your protection and can help to clarify any questions you have. The buyer pays the notary fee. This fee varies and will depend on the deed, how many pages, how complex, etc.
Land Registry Fees
The new ownership must be registered with the local Registro de la Propiedad or Land Registry by presenting the original deed within a few days of signing. The fee assessed by the Land Registry varies and depends on the value of the property. The buyer is responsible for paying the Land Registry fee.
Gran Alacant Properties advises all our clients to hire an experienced local solicitor. It important to have someone competent who speaks your language to represent you and advise you. On the Costa Blanca, solicitor fees for conveyancing are typically 1% of the purchase price.
Disclaimer: The information above is provided by Gran Alacant Properties for general informational purposes only. It is not intended to constitute legal advice or to substitute for obtaining legal advice from a licensed solicitor.