Are you considering buying a Spanish property? It’s essential to be aware of the various costs and taxes associated with this exciting venture. Beyond the purchase price, you’ll encounter taxes and professional service fees, which can amount to an additional 10% to 15% of the property’s price. Don’t overlook these costs when planning your budget for your new property.

In this informative article, we’ll provide an overview of the taxes and expenses involved in purchasing a property in Spain and how Marbella Luxury Homes can be your trusted home partner throughout this journey. Whether you’re seeking a home to live in or a commercial property, understanding these costs is crucial. Please note that tax regulations can vary by region, and the figures discussed here pertain to the Costa del Sol in Andalucia.

Taxes on buying a Spanish property

The taxes you’ll encounter when purchasing a property in Spain differ depending on whether it’s a new property or a resale. Marbella Luxury Homes can guide you through these intricacies.

For new properties:

• Value Added Tax (IVA in Spanish) applies at a rate of 10% of the purchase price. For example, if you’re acquiring a stunning new-build villa in Marbella priced at €950,000, you’ll be responsible for €95,000 in VAT.
• Stamp duty (legal documentation tax or AJD in Spanish) is set at 1.2% of the purchase price. In the case of the aforementioned villa, you’d pay €11,400 in AJD. Together, VAT and AJD contribute to an 11.5% increase in the property’s cost in Andalusia.

For resale properties:

• The primary tax for resale property purchases is the transfer tax (Impuesto de Transmisiones Patrimoniales or ITP in Spanish). The amount varies based on the property’s price and follows a sliding scale. On the Costa del Sol, the transfer tax is simplified to a flat rate of 7% for all properties. It also applies to other property types, such as garage spaces, with rates ranging from 8% to 10%, depending on the price.

Marbella Luxury Homes can assist you in understanding and managing these taxes to make your property purchase smoother.

Costs of buying a property in Spain

In addition to taxes, you’ll encounter various service fees when buying a property in Spain. Marbella Luxury Homes ensures you have all the support you need throughout this process:

• Notary fees: These fees cover the preparation of title deeds and the witnessing of the deed signing. They’re typically around 1% of the price but may be lower. Marbella Luxury Homes can help you navigate these costs efficiently.
• Land Registry fees: Officially recording property ownership is crucial. Fees range from 0.5% to 1% of the purchase price, depending on the complexity and mortgage involvement. Marbella Luxury Homes can facilitate this essential step.
• Legal fees: Engaging a lawyer is highly advisable during the purchase process. Plan for around 1% of the property price for legal services, potentially more for complex transactions.
• Estate agent fees: In Spain the agency fees are paid by the owner of the property. As a buyer you do not have to pay any agency commissions when buying a property.
• Gestoría fees: Managing paperwork and administrative tasks is streamlined with a gestoría. Fees typically start at approximately €100, making this service indispensable.
• Banking costs: Transferring funds and handling banker’s drafts can incur fees. Marbella Luxury Homes can guide you on cost-effective solutions, such as currency exchange brokers.
• Mortgage fees: If you’re financing your property purchase, expect additional costs, including valuation fees (around €500) and mortgage-related expenses (typically 1% of the mortgage value).

As you explore the process of buying a property on the Costa del Sol, remember that Marbella Luxury Homes offers comprehensive advice and support every step of the way. Contact us today to discover how we can transform your dream of owning a home in this beautiful region of Spain into a reality.

Ready to take the next step? Reach out to Marbella Luxury Homes now, and we’ll be at your service without delay. Your dream property in the Costa del Sol awaits!

In Summary: What are the costs & taxes associated with buying property in Spain

1. What are the additional costs when buying a Spanish property?
   • Additional costs can range from 10% to 15% on top of the purchase price.
2. What is the VAT rate for new-build properties in Spain?
   • VAT (IVA) for new properties is 10% of the purchase price.
3. How much is the stamp duty (AJD) for new properties in Spain?
   • Stamp duty for new properties is 1.2% of the purchase price.
4. What is the flat transfer tax rate for resale properties on the Costa del Sol?
   • The transfer tax for resale properties on the Costa del Sol is a flat rate of 7%.
5. What is the range of transfer tax for garage spaces in Spain?
   • Transfer tax for garage spaces in Spain ranges from 8% to 10% depending on the price.
6. What percentage of the purchase price typically covers notary fees?
   • Notary fees usually amount to around 1% of the purchase price.
7. What is the range of fees for the Land Registry in Spain?
   • Land Registry fees range from 0.5% to 1% of the purchase price.
8. What percentage of the property price should I budget for legal fees in Spain?
   • Budget around 1% of the property price for legal fees in Spain.
9. What are the typical estate agent fees in Spain?
   • In Spain, the agency fees are paid by the owner of the property. As a buyer, you do not have to pay any agency commissions when buying a property.
10. What is the starting fee for gestoría services in Spain?
    • Gestoría services typically start at approximately €100.
11. What is the average cost for a valuation fee when using financing to buy property in Spain?
    • A valuation fee for financing typically costs around €500.
12. What is the general fee for mortgage-related expenses in Spain?
    • Mortgage-related expenses are generally around 1% of the mortgage value.
13. What is Marbella Luxury Homes’ role in the property buying process?
    • Marbella Luxury Homes is your Trusted Home Partner offering comprehensive advice and support throughout the property buying process.
14. How can I get in touch with Marbella Luxury Homes for assistance?
    • Contact Marbella Luxury Homes on +34 951 576 218 today for expert guidance on your property purchase in Costa del Sol or email us at [email protected]

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