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Buying a Property in Spain
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PROPERTY
REGISTRATION FEES:
Registration fees are charged by the
Land Registry Office to inscribe the new
deed into your name. These are based on
the official registered value of the
property. The length and complexity of
the deed and other factors are also
considered. The fees do not exceed 1% of
the registered value. It is not
advisable to try and do this yourself
unless you are experienced and speak
Spanish fluently.
TAXES: (PROPERTY
TRANSFER TAX OR IVA (VAT)
Which of these two taxes are levied will
depend on the type of property you are
purchasing. The property transfer tax is
levied on resale properties. The General
rate for this tax is 6% but in some
regions, such as the Balearic Islands,
Cataluña and Valencia, etc. the rate is
established at 7%. This should be
verified beforehand.
If you purchase a newly built property
from a developer you will pay a
different tax called “I.V.A.” (VAT)
which is charged at 7% of the purchase
price plus 0,5% stamp duty.
LOCAL MUNICIPAL TAX (PLUSVALÍA):
This tax is based on an officially
assessed increase in the value of the
land since the last time the property
was sold . This can be quite small if
purchasing an apartment, but expensive
on a villa with a large plot, which has
not changed hands for years. Find out
the exact amount from the Town Hall. Do
not confuse this tax with the vendor’s
capital gains tax on his profit on the
sale.
In practice “who pays what” is
negotiated prior to signing the Option
Contract or Contract of Purchase/sale
and this must be stipulated in the
contract, as well as any listings of the
contents/fittings to be included in the
sale, when the owner accepts your final
offer in writing.
In accordance with Spanish law, the
purchaser is responsible for transfer
tax or (I.V.A. + stamp duty when buying
from a developer), plus Registration
Fees and Notary’s Fees.
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