Summary for Buying Costs in Costa del Sol (Estimated and Excluding VAT)
- Agency Fees Unless the buyer has specifically agreed to pay the agent’s fee this cost will be built into the sale price.
- Legal Fees Most charge around 1% of the sale price which is applied to the closing costs. You are strongly advised to hire a lawyer to help you during the buying process.
- Power of Attorney Around 80 Euros depending on the Notary.
- NIE (Identity Number for Foreigners) 150 Euros though sometimes included in Solicitor fees.
- Land Registry Reports and Certificates These documents show current legal state of properties and any problem with the title deed or land registry. 100 Euros.
- Town planning Certificate Granting access to a clean bill for any planning or urban issues.
- Mortgage costs The property valuation before granting the mortgage, paid by the buyer can cost around 500 Euros. Then there is usually an opening fee of around 1% of the value of the mortgage. A mortgage will increase the Notary expenses.
- Notary Expenses Notary expenses are nearly always paid by the. You should calculate Notary fees as being between 1% and 0.5% of the price declared in the deeds. Property registration fees are normally around 40% of the notary fees.
- Property Registry Inscription Fees You should calculate 1% of the purchase price declared in the deeds, though once again it depends upon the property and the area, and the fee could be considerably lower.
- Banking Costs To pay for the property, you will more than likely need to write a banker’s cheque. Tou will a Spanish bank and transfer money from the bank in your country. The cost of transferring the money can go up to 0,4% of the amount transferred. The banker’s cheque will most likely cost 0,5% of its amount.
Stamp Duty (A.J.D) and Transfer Tax (I.T.P)
- New build from a developer or bank.
VAT & Stamp Duty (IVA & Actos Jurídicos Documentados – AJD)
At present VAT (known as IVA in Spain) is 10% on the purchase price of residential properties (villa, apartment, etc), and 21% for commercial properties and plots of land, with the exception of the Canaries. Both VAT and Stamp Duty are paid by the buyer.
- Resale from a private individual.
Transfer Tax (Impuesto sobre Transmisiones Patrimoniales – ITP)
The Transfer Tax rate is ceded to the autonomous regions, who can choose to apply the general rate, or their own rate. The rate in Andalucía is as follows:
8% – if the final price of the property is under 400.000€
9% – if the final price of the property is between 400.000€ and 700.000€ or between 30.000€ and 50.000€ for garages.
10% – if the final price of the property is over 700.000€ or 50.000€ for garages.
In Summary, costs will range between 10% and 12% for resale properties and between 12% and 13% for newly constructed developments.