Costs and Taxes When Buying a Home in Spain
A common question when buying in Spain is: what does it cost on top of the asking price? Allow for roughly 10 to 13 percent in additional costs. It is wise to include that amount in your budget from the start, so you are not caught out.
The biggest item: the purchase tax
Which tax you pay depends on the type of property:
- Resale property: you pay transfer tax (ITP). In the Valencia region, which covers the Costa Blanca, that is usually 10 percent of the purchase price.
- New-build: you pay 10 percent VAT (IVA) plus around 1.5 percent stamp duty (AJD) on the purchase price.
The other costs
Besides the tax, allow for:
- Notary: for executing the deed, usually a few hundred to just over a thousand euros depending on the price.
- Registration: for entry in the property register.
- Lawyer: for the legal checks and guidance, often around 1 percent of the purchase price.
- Bank costs: such as a banker's cheque for payment and, with a mortgage, valuation and arrangement fees.
And after that? The annual charges
After the purchase you face recurring costs: the property tax (IBI), the refuse charge, the community fees on an urbanisation and, for non-residents, the annual income tax for foreign owners. These amounts are usually modest, but they are part of the picture.
Clarity in advance
No surprises afterwards: that starts with a clear cost calculation in advance. For every property, Real Estate G. Jimmink sets out exactly which costs and taxes apply, so you know precisely where you stand. Get in touch for a personal calculation.
