PURCHASE COSTS AND TAXES WHEN BUYING A PROPERTY IN SPAIN
In summary, the cost of buying a property in the Costa Del Sol is between 10% and 12% for an existing property (RESALES). For newly build properties and off-plan projects, it is best to take into consideration a cost of 12 to 14%. Further detailed calculations, please find below.
Purchase Costs
Sales prices of properties in Spain are generally exclusive of fees and taxes. However, the estate agents commission is already included, as it is paid by the seller.
Existing Property
With an existing property there is a transfer tax (ITP Impuesto sobre Transmisiones Patrimoniales ) to be paid. This is currently reduced from 10% to 7% in the Costa Del Sol / Andalucia.
New Construction and Off-plan Projects
The VAT (=IVA) on a new construction / off-plan project is 10% in Spain. The VAT for purchase of land or plot is 21%.
Notary Fees
The notary fees are variable but fixed in an official scale. A mortgage involves higher notary fees. On average the notary fee is 1%.
Registration Costs
The registration fees in the property register (Registro de la Propiedad) are almost identical to the notary fees so +- 1% of the purchase value.
Lawyer Fees
Normally around 1-1.5% of the purchase price. Of course, this also depends on whether the property is bought privately or under a company name. Your lawyer will clearly inform you about this.
Disclaimer: These are indicative amounts (2023 / Estepona) and can of course always change as a result of new legislation and (local) adjustments. For exact amounts you should always consult your lawyer.