Financing and legal

Supplementary costs

Remember that the property purchase price is not the only sum you need to account for to buy a property in Spain. There are numerous other fees and taxes, so you need to allow around 12-15% on top of the purchase price to cover all of these costs.

Purchases of newly built residential properties are subject to a value added tax – Impuesto sobre el Valor Añadido – of 10% of the purchase price. In addition to this, you will have to pay between 1.0% and 1.5% in stamp duty, depending of the location of your new property.

Second-hand properties are subject to a transfer tax – Impuesto de Transmisiones Patrimoniales – of 8-10%, depending on region and price of the property. No stamp duty is payable for resale properties.

Public Notary fees
The buyer is responsible for paying the Public Notary's fees when the partners exchange contracts. The cost can be difficult to calculate in advance as a range of different factors are involved. However, a reliable rule of thumb is that the fees will be in a range of €500-€1,500. 

Registration duties
The buyer also has to pay to register as the new owner in the property register. Again, it is difficult to calculate the exact cost in advance, but a good rule of thumb is to budget €100-€200 for the registration.

Connection fees
When you take over a property in Spain, you have to pay connection fees and/or duties in order to change the name on the utility contracts for water, drainage, electricity and gas.

Financing costs
If you choose to take out a mortgage to finance part of your property purchase, then some additional costs will apply. Generally, allow 12-15% on top of to purchase price if you are buying with a mortgage add 3-5%. The precise cost will depend on the lending agreement in place between you and your bank.