Buyer’s Guide

Financial costs.

If you choose to buy with a mortgage in Spain,this will incur several additional costs.Who pays the expenses? The cost of property appraisal corresponds to the borrower and can be around 500euros.All management expenses,stamp duty (AJD),notary fees and Property Registry fees correspond to the financial institution.

Lawyer.

We always recommend to our clients that they obtain the advice of an independent lawyer.The cost will vary depending on the complexity of the purchase,but as a general rule,they charge around 1% of the purchase price.

Notary fees.

Notary fees correspond to the buyer and are calculated in relation to the purchase price stipulated in the deeds.Generally,notary fees are more or less around 0.5% of the sale price.

VAT and Stamp Duty

(VAT & Documented Legal Acts – AJD).These taxes apply to residential properties that are sold for the first time (never before occupied) or to commercial properties and plots of land.This is a national tax,so VAT is the same throughout the national territory except for the Canary Islands, which has its own application of VAT.Currently, VAT is at 10% on the purchase price of residential properties (villa, apartment, etc.) and 21% for commercial properties and land.

Property Transfer Tax (ITP).

This is a tax that must be paid to the Treasury when second-hand real estate transactions are carried out,and this expense corresponds to the buyer.The Property Transfer Tax rate in Andaluzia is 7% of the sale price.

Real estate agency commission.

The fees or commissions of the real estate agency are paid by the seller.The usual commission is 5% plus VAT of the sale price.