Costs for the buyer

A basic rule when buying a property in Spain is that you should add about 11% to the selling price to cover all additional costs. Note: If the sales price is low (eg less than € 120,000, take into account 13% because not all costs are calculated in percentage but some are flat-rate.
(If you need a mortgage, it is best to count 13% to 15% of the sales price.)

The purchase costs are distributed as follows:

8% transfer tax (Impuesto de Transmisiones Patrimoniales).

This amount is always calculated on the deed price, i.e. the indicated price.

1% lawyer fees.

This amount is always calculated on the sales price as priced on the internet, magazines or in the display case at a broker. You also need 21% VAT on this service. to pay (I.V.A. = Impuesto sobre el Valor Añadido). The advocated office we work with (Axarquia Solicitors) charges 1% incl VAT for this.

Notary fees about 0.25% of the deed price

These are variable and depend on the complexity of the deed. If, for example, a mortgage rests on the property, the cost price is higher.

Registration fee property register approximately 0.15% of the deed price.

This amount is comparable to the notary’s fees, but is usually slightly lower.

Note:

Costs for the broker are always included in the sales price, at least this applies to the province of Malaga. In practice, it is true that the owner of the property pays the commission to the broker.

For example: you are buying a property of 300.000€

8% transfer tax: 8%of 300.000€*

=  24.000€*

1% lawyer’s fee: 3000€ incl. 21% VAT

=  3.000€

Notary costs, depending on the complexity of the case

=  1.200€

Registration costs (aproximately)

=  1.000€

Application of your NIE (2)

=   120€

Transfer of utility bills

=   300€

Home insurance (fire, water damages, burglary)

=   350€

Various administrative costs

=   150€

TOTAL

= 30.120€

*In case the price is divided into two parts, one for the house and one for furniture e.g. 280.000€ for the house and 20.000€ for furniture, then you only pay 4% on the amount of the furniture.

Please note:

In case you need a mortgage, you will pay the above mentioned costs + opening costs for the bank (depending on the bank) and taxation costs.

Since 2019 notary fees, registration costs and stamp duties for mortgages are paid by the bank!

Buyer’s costs for resale properties:

1st tier : 0 – 400.000€

=  8%

2nd tier : 400.000 -700.000€

=  9%

3rd tier : > 700.000€

=  10%

example:

1. for a house of 250.000€, you will pay:

250.000€ x 0.08= 20.000€ transfer tax

2. For a house of 1.200.000€ you will pay:

Tier < 400.000€

= 400.000€ x 8% = 32.000€

Tier from 400.000 to 700.000€

= 300.000€ x 9% = 27.000€

Tier from 700.000 to 1.200.000€

= 500.000€ x 10% = 50.000€

Garages:

1st tier : 0 to 30.000€

: 8%

2nd tier : 30.000 – 50.000€

: 9%

3rd tier : > 50.000€

: 10%

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Purchasing a new build property The attorneys role Buying
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