|Address:||Via Park II, Local 22
|Phone:||+34 966 730 540|
LEGAL COSTS INVOLVED IN THE PURCHASE OF PROPERTY IN SPAIN
As a rule of thumb, you should estimate that the combined total of costs which you will incur will be around 14% of the purchase price. However with some of the lower priced properties the fees may be considerably more than 14%
A basic breakdown of the fess are as follows.-
- Lawyers Fees: Around 1,500 Euros plus 21% VAT ( IVA ).
- Notary Charges are fixed by law and are generally between 400 to 800 Euros.
- Land Registry Fees are approximately 50% of the notary charges.
- VAT (IVA) or transfer Tax (ITP). IVA applies to off-plan properties (new build) and ITP applies to re-sales (second hand). IVA is 8% of purchase price and ITP is 10% of purchase price.
- PLUS VALIA : Increase in Land tax (Capital Gains) is an 'added value' tax based upon the increase of the Town Hall index value of the land only, from the prior (vendor's) purchase to the present sale. The tax corresponds in principle to the seller, but in some circumstances can be paid for by the purchaser. As there are several variable factors used in calculating this tax (area of land, location, building volume permitted, period of ownership of the vendor), the amount payable can vary substantially and should be verified before proceeding with the purchase.
Mortgage Fees – Please note that if you wish to fund part of your purchase with a mortgage then there will be bank survey fees and mortgage arrangement fees. Each banks charging system is different but it will be around 1-2% of the purchase price.