TAXES AND EXPENSES


When buying a property in Spain, and therefore on Costa del Sol, there are legal fees and taxes which must be paid. Allow for between 11 and 14% of the purchase price, to cover the costs of buying the property. These expenses include Transfer Tax, Notary fee, a Land Registry/Stamp Duty fee and a fee for the work of your lawyer. All are percentages calculated from the property purchase price. The amounts vary a little, depending on whether you buy a second hand resale property, or a newly build/developed property

BREAKDOWN


TAXES AND EXPENSES TO BE PAID WHEN PURCHASING A PROPERTY IN SPAIN


RESALE PROPERTY
Transfer Tax 8-10%*
 Lawyer fee  1%
 Notary fee  1%
 Stamp Duty Tax  1.5%
 TOTAL  12%


NEWLY BUILD PROPERTY
VAT 10%
 Lawyer fee  1%
 Notary fee  1%
 Stamp Duty Tax  1.5%
 TOTAL  13.5%

*The Transfer Tax on resale properties vary from 8 to 10% depending on the purchase price. Buyers purchasing for an amount in between 0-400.000€, pay 8% of the whole amount. If the buying price is anywhere in between 400.000€ and 700.000€, a 9% Transfer Tax is charged, but only from the amount exceeding the 400.000€ mark. Finally all buyers purchasing property worth more than 700.000€, will have to pay 10% Transfer Tax, but again only from the amount exceeding the 700.000€. See the example below.

Example:

Buying a property worth 1.100.000€

400.000€*0,08 = 32.000€
(o-400K = 8%)

300.000€*0,09 = 27.000€
(400-700K = 9%)

400.000€*0,10 = 40.000€
(700K+ = 10%)

Amount of Transfer Tax to be paid: 99.000€