What will cost me to Own a Property in Spain? an incredibly easy method that works for all
UNDERSTAND THE COSTS OF BUYING
As a property buyer in Spain, you will have to pay numerous taxes and duties on top of the purchase price. Depending on whether you are purchasing a new property from a developer or reselling an existing property.
NEW BUILD FROM DEVELOPER OR BANK.
VAT & Stamp-duty (IVA & Actos Jurídicos Documentados – AJD) With the exception of the Canaries, VAT (known as IVA in Spain) is currently 10% on the purchase price of a residential property and 21% on commercial properties and plots of land. The buyer is responsible for both 1.5% Stamp Duty and VAT.
RESALE FROM A PRIVATE INDIVIDUAL.
Transfer Tax (Impuesto sobre Transmisiones Patrimoniales – ITP) The Transfer Tax rate is delegated to autonomous regions, which may apply either the general rate or their own rate. In Andalusia, the rate is as follows: 8% if the property’s final price is less than 400,000€ If the final price of the property is between 400,000€ and 700,000€, the interest rate is 9%. 10% of the total price of the property exceeds 700,000€
OTHER COSTS AT THE TIME OF PURCHASING
1% for public notary and land registry In the case of a Spanish mortgage, there is an additional 1% public notary and land registry fee. Lawyer’s fee is 1% plus VAT.
ANNUAL PROPERTY COST
1. COMMUNITY FEES
Fees will vary depending on the size of the gardens, the number of lifts, whether or not there is private security, and so on.
2. UTILITY SERVICES
These include electricity, water, and gas, and their prices vary according to your personal consumption.
Typically, electrical bills are paid every two months.
Water is paid once a month and varies.
The community will insure The building. Your property insurance will cover contents and damage from fire and water, among other things. It is mandatory that in a communal building owners are insured.
4. TOWN HALL TAX (IBI)
This is a local tax applied to the ownership of property in Spain, irrespective of whether the owner is a resident or not. Calculated on the basis of the cadastral value (an administrative value that is usually lower than the market value) set by the town hall the tax rate goes from 0.4% – 1.1% of the valor cadastral depending on the Spanish region. You will make The payment once a year.
Vendome International Property Will Help Own A Property In Spain: