1. Property Transfer Tax (ITP) – 8-10%- What It Is: This tax applies to resale properties (not new builds) and varies by region.
- Percentage: Typically, 8-10% of the purchase price. For example, if you’re buying a property priced at €200,000, the transfer tax could be between €16,000 and €20,000.
- Regional Differences: For example, in regions like Andalusia, the tax is tiered, meaning higher-priced properties are taxed at a higher rate. In other areas like Valencia, a flat rate of around 10% is more common.
2. VAT (IVA) and Stamp Duty (AJD) – 10% + 1-1.5% (New Builds)- VAT (IVA): For new properties purchased directly from a developer, VAT is charged instead of ITP. The rate is generally 10% of the purchase price.
- Stamp Duty (AJD): For new builds, buyers also pay an additional 1-1.5% stamp duty based on the property’s value. If purchasing a €200,000 new build, the VAT would be €20,000, and stamp duty would add €2,000-€3,000.
3. Notary Fees – €800-€1,500- What It Is: The notary formalizes the sale and verifies documentation.
- Range: Costs vary based on the property’s value and complexity of the transaction, typically from €800 to €1,500.
- Example: For a €200,000 property, expect around €1,000 in notary fees.
4. Land Registry Fees – €400-€1,000- What It Is: This fee registers the property in the buyer's name in the official Land Registry.
- Range: Generally ranges from €400 to €1,000, depending on the property price and region.
- Example: A €200,000 property might incur a registration fee of around €500.
5. Legal Fees (Optional but Recommended) – 1-2% of Property Price- What It Is: Many buyers hire a real estate lawyer for due diligence, reviewing contracts, and managing taxes.
- Range: Legal fees are typically 1-2% of the property price. On a €200,000 property, this would be €2,000-€4,000.
Summary of Estimated Costs for a €200,000 PropertyFor a resale property:- Property Transfer Tax: €16,000 - €20,000
- Notary Fees: €800 - €1,500
- Land Registry Fees: €400 - €1,000
For a new build:- VAT (IVA): €20,000
- Stamp Duty (AJD): €2,000 - €3,000
- Notary Fees: €800 - €1,500
- Land Registry Fees: €400 - €1,000
The total additional costs to buy a €200,000 property in Spain typically range from €18,200 to €26,500 for resale properties, and €23,200 to €25,500 for new builds.These costs ensure that the property transaction is legally binding, officially documented, and properly registered.*In Spain, the real estate agent’s commission is typically paid by the
seller, not the buyer, which is a big plus for buyers. The seller's agent commission usually ranges from
3-6% of the property’s sale price, but this amount is already included in the listed price and handled by the seller.
So, as a buyer, you generally don’t need to budget for an agent’s commission unless you hire a buyer’s agent for specific services beyond those provided by the listing agent.