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Investment property in Spain

Buying Guide

Buying Costs

Overall

You should budget around 10 - 11% of the purchase price for costs.

New builds: buying costs

From Private Purchase Contact onwards, payments are subject to IVA at 7% on new build (land with no build and commercial property is taxed at 16%).

On completion there will be a 1% tax for Actos Juridicos Documentados (Stamp Duty), a notary fee and a land registry fee, which combined should not total more than 1%.

Resales: buying costs

Resales are subject to Impuesto sobre Transmisiones Patrimoniales (transfer tax), instead of IVA, at 6%-7% and this includes their Stamp Duty.

Also 5% must be held back for the tax office if the seller is not a Spanish resident.

Common costs

Assuming there are no complications, lawyers should not be charging more than 1%.

Notary expenses are calculated in relation to the purchase price declared in the deeds of sale and to be on the safe side you should allow 1% of the purchase price to cover them but they are more likely to be 0.5% or less.

Mortgages will incur a property valuation (approximately 500 EUR), an opening fee of 1% of mortgage value and marginally increased notary fees.

A bank guaranteed cheque will be a small cost of 0.5% of amount transferred.

Key facts

• Budget around 10 - 11% of the purchase price for costs
• Lawyers should not be charging more than 1% if there are no complications
• Mortgages incur a property valuation (about 500 EUR), an opening fee of 1% of mortgage value and marginally increased notary fees
• A bank guaranteed cheque will be 0.5% of the amount transferred
• The stage payments for new builds are subject to IVA at 7% (land with no build and commercial property is taxed at 16%)
• Following completion, new builds incur a 1% tax for Actos Juridicos Documentados (Stamp Duty), a notary fee and a land registry fee, which combined should not total more than 1%
• Instead of IVA, resales are subject to Impuesto sobre Transmisiones Patrimoniales (transfer tax) at 6%-7% which includes their Stamp Duty
• If the seller is a non-resident an additional 5% must be reserved for the tax office

Downloadable Reports and Documents

		Spain property investment report (418Kb) A concise but thorough analysis. A must for all potential investors in Spain's real estate.
		Spain country guide (999Kb) General information about the country, its people, history, economy, politics and much more.
		Spain property buying guide (965Kb) This property buying guide provides essential information about purchasing property in Spain.

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