Buying Property in Spain:
What You Need To Know

You should allow 10% above the purchase price to cover VAT ‘IVA’ and other taxes and costs.

Once you have located the property you wish to purchase, you will need a lawyer or ‘abogado’. He will be your best guide to general information and property taxes.  He will also make sure that the property is registered in the Vendor's name and free from any mortgages, charges encumbrances, debts or other liabilities. He will also negotiate and discuss purchase terms with the seller’s solicitors. Most solicitors speak very good English and their fees are usually 1% of the purchase price plus 16% IVA.

On new properties you will be required to pay 7% IVA on your purchase price plus Stamp duty of 0.5%. On re-sales a 7% property transfer tax ‘ITP’ is charged. 16% is payable if you are purchasing parcels of land or commercial properties.

Notary fees are paid on the day of completion. The fees for 300,000-euro apartment will cost about 480 euros. Property registry fees will be paid on the same day as notary fees and amount to 65% of the notary fees.

Plus valia tax may have to be paid and is based on the increase in value of the property since it last changed hands. Normally paid by the seller but sometimes by the buyer. This tax is often negotiated, so please check.

This information is for your guidance only. Solbrokers Property Agency Ltd do not accept any liability for incorrect data. Please check with your solicitor for the latest information.

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