COSTS OF BUYING PROPERTY IN SPAIN

Buying Property in Spain: Costs and Taxes You Need to Know About

Purchasing real estate in Spain comes with a variety of costs and taxes that need to be settled before you can call yourself the proud owner of a home.

While these expenses are mandatory, the total amount varies depending on the region, whether the property is new or pre-owned, and, of course, its price tag.

Here’s a breakdown of the key expenses buyers should plan for in 2024:

1. Notary Fees
Formalizing the sales contract with a notary will set you back €600 and up, depending on the property’s value.

2. Property Registration
This involves registering your ownership with the land registry. Rates are legally regulated and typically range between €400–€650.

3. Administration Fees (Gestoría Services)
These professionals handle the nitty-gritty details of taxes and documents—especially crucial if you’re getting a mortgage. Expect to pay around €300 for their expertise.

4. Property Taxes
Taxes vary depending on whether the property is new or second-hand:

For New Builds:

VAT (IVA): A flat 10% of the property’s price in 2024.
Stamp Duty (IAJD): This rate depends on the region (e.g., 1.5% in Catalonia).
For Pre-Owned Properties:

The main tax is the Property Transfer Tax (ITP), which also depends on the region (e.g., 10% in Catalonia).
5. Extra Costs for Mortgages

Property Valuation: Typically €250–€600.
Mortgage Opening Fees: Up to 2% of the loan amount, although many banks are waiving this fee these days.
The Final Bill:
All these expenses combined usually add up to 10–12% of the property’s price.