PURCHASE-RELATED COSTS IN SPANISH PROPERTY TRANSACTIONS:
|
TYPICAL NEW BUILD
|
TYPICAL RESALE
|
| IVA (VAT): 8% |
ITP (Transmission Tax): 7% |
| AJD (Stamp Duty): 1% |
AJD (Stamp Duty): Not applicable |
| Notary: 0.6% |
Notary: 0.6% |
| Land Registry: 0.3% – 0.7% |
Land Registry: 0.3% |
| Plusvalía (Value-Rise Tax): N/A |
Plusvalía (Value-Rise Tax): 0.2% |
| Electricity Mains Connection: Approx. 170 € |
Electricity Change-Over: Approx. 30 € |
| Water Mains Connection: Approx. 150 € |
Water Change-Over: Approx. 60 € |
| NIE (Tax Number, per person): 50 € |
NIE (Tax Number, per person): 50 € |
| Testamento (Last Will, per person): 150 € |
Testamento (Last Will, per person): 150 € |
| Solicitor´s Fee: 900 € | Solicitor´s Fee: 900 € |
NB: All percentages displayed in the above table are relative to the value declared at the Notary Public. For more information on one-off and running-costs, see main section “Buying a Property”.
Example: Property Declared at 150,000 €
|
NEW BUILD
|
RESALE
|
| IVA (VAT): 12,000 € |
ITP (Transmission Tax): 10,500 € |
| AJD (Stamp Duty): 1,500 € |
AJD (Stamp Duty): 0 |
| Notary: 900 € |
Notary: 900 € |
| Land Registry: 450 € |
Land Registry: 450 € |
| Plusvalía (Value-Rise Tax): N/A € |
Plusvalía (Value-Rise Tax): 500 € |
| Electricity Mains Connection: Approx. 170 € |
Electricity Change-Over: Approx. 30 € |
| Water Mains Connection: Approx. 150 € |
Water Change-Over: Approx. 60 € |
| NIE (Tax Number) x 2: 100 € |
NIE (Tax Number) x 2: 100 € |
| Testamento (Last Will) x 2: 300 € |
Testamento (Last Will) x 2: 300 € |
| Solicitor´s Fee: 900 € | Solicitor´s Fee: 900 € |
| TOTAL: 16,470€ = 10.98% | TOTAL: 13,740€ = 9.16% |
To make the various payments for the purchase-related costs, Spanish solicitors typically ask you to provide 3% of the declared value of the property in cash (plus a bank draft for the Transmission Tax, if you buy a resale) on the day of completion. Any surplus will be refunded once all taxes and fees have been paid, normally within 4 – 6 weeks from the signing of the Public Deeds.
ANNUAL RUNNING COSTS (NON-RESIDENT PROPERTY OWNERS)
- Cuota de Comunidad (Maintenance charge covering the maintenance of common areas and costs such as gardens, swimming-pool, street lighting, vigilance, etc.):
Typically 150 € – 500 €.- IRPF (Income Tax, payable during the second half-year for previous year):
1) Divide declared price by 2.
2) On the result, calculate 2% (some municipalities may require a lower percentage).
3) Your income tax is 24% of the result of step 2. PLEASE NOTE THIS IS JUST AN APPROXIMATION.- IBI (Town Hall Rates, a.k.a. “SUMA”): Approx. 0.4% – 0.8% of your property’s taxable value (valor catastral).
- Water and Waste Collection: From approx. 60 € + metered water consumption.
- Electricity: From approx. 60 € + metered power consumption.
- House & Contents Insurance: From approx. 120 €.
- Fiscal Representation Fee: From approx. 120 €.
NB: A resident person´s main residence is tax-free. For more information on one-off and running-costs, see main section “Buying a Property”.
