Cost and transfer taxes on the buyer’s side

Here are the details on the costs and transfer taxes to be paid by the buyer when purchasing a property in Marbella, Spain:

Property purchase costs

The costs and taxes to be paid by the buyer are:

  • The notary: It is common practice that the buyer pays for the notary fees, however theorically it is the seller that should pay for it, except for the first copy of the title deed.  The notary fees will be charged according to an official scale and depend on the number of pages and complexity of the title deed.
  • The land registrar: The fees charged for registering your property. The fees are established by a regulation schedule and depend on the value of the property.
  • The lawyer: The fees agreed with your lawyer, generally around 1%.
  • The agency fees vary depending on the area of Spain. On the Costa del Sol these are generally paid by the seller, unless that a buyer has formally contracted an agency to search for a property and negotiate the purchase.

Property transfer taxes:

The transfer taxes when buying a property in Spain have significantly changed since the 1st of January 2012. Here are the details of the taxes that a buyer will pay subsequent to this date in the region of Andalucia:

When purchasing a new property directly from a Real Estate Developer:
Since the 1st January 2013 there is IVA (VAT) at 10% + AJD 1,5% (stamp duty) on the final purchase price for brand new properties, generally sold by a developer or habitual trader for new properties. This includes residential properties, such as villas, apartments and garages anexed to an apartment. For plots, commercial premises and garages not anexed to an apartment, bought directly from the Developer, there is IVA at 21% + 1,5% AJD.

When purchasing a re-sale or second hand property from another owner
From 1st January 2012  ITP (impuesto de transmisiones patrimoniales) is applicable per band as follows:

 

Purchase price

Villas & apartments

Applicable tax rate

Purchase price

garages

Applicable tax rate

up to 400,000€

8%

up to 30,000€

8%

from 400,000€ to 700,000€

9%

From 30,000€ to 50,000€

9%

above 700,000€

10%

Above 50,000€

10%

 

The above scale is applicable for villas, apartments, garages annexed to an apartment and commecial premises when the seller is not a develloper or a trader of resale properties.

Paperwork required for purchasing a property

If you are a foreigner and non-resident, the Spanish authorities require you to obtain the NIE (indentity number for foreigners) which becomes your fiscal number as well, in order to sign the title deed and register the property at the land registry. The NIE is compulsory in order to sign the title deed at the notary, to register your property at the land registry and to pay taxes.

Opening a bank account when the buying process starts is necessary, as you will need it to complete the purchase, and afterwards to set up direct debit for the utility bills such as electricity, water, telephone, insurance, etc.

The details provided herein are only by way of an informative guide, they do not substitute legal advice. The content is subject to updates, may have errors or omissions.