When buying a property in Spain what fees on top of your minimum 30% deposit do you need to factor in to make sure you have sufficient funds to complete

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There are several taxes and fees that must be considered. These costs vary depending on whether the property is new or a resale, as well as the region in which it is located.

  1. Property Transfer Tax (Impuesto de Transmisiones Patrimoniales or ITP)

For resale properties, buyers must pay the ITP, which ranges from 6% to 10% of the property’s purchase price, depending on the region. For example, in Madrid, it’s 6%, while in Catalonia, it’s 10%.

  1. VAT (Impuesto sobre el Valor Añadido or IVA)

For new properties, VAT is applicable instead of ITP. The rate is 10% for residential properties, but 21% for land or commercial properties.

  1. Stamp Duty (Impuesto de Actos Jurídicos Documentados or AJD)

Buyers of new properties also need to pay stamp duty, which varies between 0.5% and 2% of the purchase price, depending on the region.

  1. Notary Fees

The notary’s involvement is essential in Spain to formalize property transactions. Notary fees are regulated and typically range from **0.5% to 1%** of the property’s price, depending on the complexity of the transaction and the region.

  1. Land Registry Fees

Registering the property at the Land Registry is mandatory. Fees usually range between 300€ and 600€ but can vary slightly depending on the property’s value and region.

  1. Legal Fees

While hiring a lawyer is not mandatory, it is highly recommended, especially for foreigners. Legal fees typically range from 1% to 2% of the purchase price.

  1. Mortgage Fees

If a mortgage is required, additional costs include valuation fees (around 300€-500€) and potential arrangement fees (up to 2% of the mortgage value). There might also be mortgage registration fees.

  1. Agency Fees

Real estate agents’ fees in Spain are generally paid by the seller, but in some cases, the buyer may incur some costs, typically 2% to 5% of the property price.

Factoring in these taxes and fees is crucial to understanding the full cost of purchasing property in Spain. Buyers should be aware that, on average, they should expect to pay an additional 10%-15% of the property price on taxes and fees.

If you are looking to buy a property in Spain and need a mortgage, email mark@vci-network.com for the latest criteria