Property Purchase Costs

7% transfer tax (I.T.P.) Payable by the buyer for the purchase of any Real Estate (villas, flats, land, commercial premises, garages), provided the vendor is not a developer or normally trading in the business of resale properties.

8% (7% VAT and 1% stamp duty) For any VILLA or APARTMENT, or GARAGE that is annexed to an apartment, where the vendor is a developer, promoter or habitual trader in these generally new properties.

17% (16% VAT and 1% stamp duty) For PARCELS OF LAND, COMMERCIAL PREMISES or COMMERCIAL GARAGE SPACES, where the vendor is a developer, promoter or habitual trader or a company. This covers virtually all NEWLY URBANIZED LAND PARCELS and NEWLY BUILT COMMERCIAL PREMISES. This only covers resale properties when the vendor falls into one of the above categories.

Notary and Property Registry fees should vary between €1,200 and €2,500 each depending on the value and complexity of the property. The cost increases according to the number of pages or complexity of the title deed, and value of the property.

Lawyers Fees (1% Appox.) Lawyer’s fees are in the order of 1% of the selling price, more or less, depending on the lawyer and the price of the property.

The Plus Valía tax can be as little as a few hundred Euros or as much as many thousands of Euros on a property with a lot of land that hasn't changed hands in many years. This tax corresponds, by its nature, to the vendor who is responsible for its payment, unless otherwise negotiated.

In summary

The total official costs involved in purchasing a constructed residential property should be less than 8% for resale properties or less than 9% if VAT is paid on the purchase price, plus lawyers fees.

When an offer is accepted, always get a lawyer to check the land registry (the last word on property ownership, where any liens and encumbrances will show up). He will prepare a private contract that will bind both parties to the deal, and eventually prepare the public deeds for signature in front of a Spanish Notary, when the balance of the purchase price is paid and vacant possession of the unencumbered property is granted, thereby completing the sale. There are excellent lawyers in Spain, most speaking fluent English and other languages. The best way to find one is by personal recommendation, or by asking your agent.

Of course, many of the above comments are more intended for the purchase of resale properties, as new developments have a fixed price list and payment schedule, often with very little room for negotiation, at least with respect to price.

....and finally

.....finding and buying a property in Spain can be as simple, or as complicated a procedure as one wants to make of it. The old rule of Caveat Emptor, (Let the Buyer Beware!) always holds true. And a final tip: listen to your intuition!