What expenses will I have when buying a property in Spain?
Taking into consideration that the property expenses in Spain are different from your own country, it is evident that as a client and prospective buyer of a home, second residence or investment in Alicante or other areas like Torrevieja or the Costa Blanca in general, you have diverse questions about how much will it cost to purchase in Spain. In CC Lawyers we feel your curiosity and provide with the information that you are looking for. Nevertheless, if you have any more doubts about the expenses, please reach out to us.
What property expenses will I have when buying in Spain, Alicante or Torrevieja?
Taxes:
- Transfer tax (relevant for resale properties only) or Stamp Duty: The rate varies according to the premise’s location. Presently, in the Valencian Community, the Transfer Duty is 10% of the sale price. Please bear in mind that the Tax office recently established a minimum or reference value for tax purposes for every property. This means that when you are purchasing, you need to consider that minimum reference value to pay that 10% if the reference value is higher than the sale price. If your sale price is higher than the reference value, you will pay the transfer duty according to the sale price and not the reference value.
The transfer duty changes from community to community and for example the % applicable in the Region of Murcia for example will be the 8%.
- Value Added Tax (VAT, applicable to new properties only): Currently, the VAT for newly purchased properties stand at 10% of the asset value.
- Legal Document Duty (pertaining to new properties exclusively): In the Valencian Community (Alicante, Valencia, Castellón province), this one is presently set at 1,5%.
Fees:
- Land Registry Fees ranging between 200 euros and 600 euros.
- Notary’s Charges: These are official charges prescribed by law and depend on the land’s sale price, typically falling within the 500 euros to 800 euros range. For other cases the notary fees can be up to 1.000 euros but only in very few cases.
- Legal Advisor costs (Lawyer)
- Management Office Fees (Gestoría)
What are the costs for buying an apartment or house in Alicante, Costa Blanca or Torrevieja?
Since this is an important matter, it is crucial that you have all of these costs in mind when acquiring a house in Spain. For an extensive view of the expenses, we have added all costs involving notary and lawyer’s charges, as well as other official entities involved in the process.
Upon becoming the new real estate owner, you will need to settle the IBI contribution (property toll) and the garbage collection tariff (an annual payment). The IBI Impost must be paid by the asset owner from January 1st of the year. For example, if you purchase an estate on December 29th, you will need to cover the IBI assessment for the upcoming year. However, if your purchase takes place on January 15th, the former owner is responsible for the IBI for that year, and you will commence payment the following year. It is now customary for sellers and buyers to split the impost based on the number of days each party own the asset after a precedent set by a Judgment of the Supreme Court.
What expenses will I have when selling a property in Spain?
What financial responsibilities arise when selling a land in Spain?
- PLUSVALIA (Tax on Increment of Urban Land Value): The municipal levy pertains to the appreciation of the land value since the last transfer. It is the seller’s obligation, and the rate varies across different town councils. Payments must be made within 30 days of the sale deed signing, along with other duties.
- NON-RESIDENT Tribute: During the Notary proceedings, the seller receives the total sale price except for 3%, which the buyer directly remits to the Spanish Tax Office.
- ENERGY EFFICIENCY CERTIFICATE: An authorized technician must issue this certificate, providing details on residence efficiency and energy-saving recommendations. This document is mandatory and must be presented at the Notary when concluding the premises sale.
In CC Lawyers we understand that all of this is new information for you. Therefore, we encourage you to reach to us for any further information or clarification. You can contact us by filling up the form online, through email or by call. We will accompany you through the whole process and always look for your own good.