PURCHASE-RELATED COSTS IN SPANISH PROPERTY TRANSACTIONS:

TYPICAL NEW BUILD

TYPICAL RESALE

IVA (VAT): 10%ITP (Transmission Tax): 10%
AJD (Stamp Duty): 1.5%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/APlusvalía (Value-Rise Tax): N/A
Electricity Mains Connection: Approx. €170 Electricity Change-Over: Approx. €30 
Water Mains Connection: Approx. €150Water Change-Over: Approx. €60
NIE (Tax Number, per person): €75NIE (Tax Number, per person): €75
Testamento (Last Will, per person): €150Testamento (Last Will, per person): €150
Solicitor´s Fee: €1,100Solicitor´s Fee: €1,100

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 "Good to Know/Purchasing Guide".


Example: Property Declared at €150,000

NEW BUILD

RESALE

IVA (VAT): €15,000ITP (Transmission Tax): €15,000
AJD (Stamp Duty): €2,250AJD (Stamp Duty): 0
Notary: €900Notary: €900
Land Registry: €450Land Registry: €450
Plusvalía (Value-Rise Tax): N/APlusvalía (Value-Rise Tax): N/A
Electricity Mains Connection: €170 Electricity Change-Over: €30
Water Mains Connection: €150Water Change-Over: €60
NIE (Tax Number): €75NIE (Tax Number): €75
Testamento (Last Will): €150Testamento (Last Will): €150
Solicitor´s Fee: €1,100Solicitor´s Fee: €1,100
TOTAL: €20,245 = 13.5%TOTAL: €17,765 = 11.8%

To make the various payments for the purchase-related costs, Spanish solicitors typically ask you to provide 2% - 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 €200 – €900.
  • 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. €180 + metered water consumption.
  • Electricity: From approx. €200 + metered power consumption.
  • House & Contents Insurance: From approx. €120.
  • Fiscal Representation Fee: From approx. €150.

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".

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