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COSTS FOR BUYING A PROPERTY

 

HEREWITH WE INFORM YOU ABOUT THE COSTS FOR BUYING A PROPERTY AS FOLLOWS.

NOTARY & REGISTRY

The costs for Notary en Registry together for a property of:

300,000 Euro is approximately 900 Euro.
600,000 Euro is approximately 1,600 Euro.
1,000,000 Euro is approximately 2,000 Euro
1,500,000 Euro is approximately 3,000 Euro
3,000,000 Euro is approximately 4,000 Euro

STAMP DUTIES OR V.A.T. (I.V.A.)
The V.A.T. on buying a property from a Developer (New House) is currently 10 % of the purchase price plus 1.5% of Stamp duties.

As far as the Property Transfer Taks is concerned just applicable for the resale is as follows: Up to 400,000 Euro 8%, from 400,001 to 700,000 Euro 9% and over 700,01 the taks due is 10%. Garages and storerooms also are subject to a similar banding as follows-to 30,000 Euro 8%, 30,001 to 50,000 Euro 9% and over 50,000 then 10% is due.

Including all taxes, Notary fees, Land Registry Fees, Lawyer’s Fees etc. etc. the total costs for resales is normally 10% – 11% of the price. If it is bought from a Developer (first hand) the costs are approximately 13% of the price. Mortgage costs including taxes, valuations, bank commissiones and legal expenses arise normally to approximately 3.5% – 4% of the principal of the mortgage.

Regarding the different possibilities to purchase (Foreign company, Spanish Company, personal name one or more, etc.) it depends on the purchase situation so should be studied in each case.

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