When buying property in Spain, it’s crucial to understand the full range of costs beyond the purchase price. Here’s a clear breakdown of what to expect when buying new versus resale properties, so you can budget effectively and avoid surprises.
Costs for New Properties in Spain
What is a “New Property”?
In Spain, a new property is one that has never been lived in before. This typically includes newly constructed homes or apartments that are sold directly by developers.
In Spain, a new property is one that has never been lived in before. This typically includes newly constructed homes or apartments that are sold directly by developers.
Additional Costs (Approx 10-13% of the Property Price)
- VAT (Value Added Tax): 10% of the property price. This tax is applied to new residential properties and is a significant part of the total purchase cost.
- Stamp Duty (Andalucia): 1.2% of the property price. This regional tax is mandatory for new property purchases.
- Notary & Land Registry Fees: 1% of the property price. These fees are for legal documentation and registering the property in your name.
- Legal Fees: 1-1.5% of the property purchase price plus 21% VAT. This covers the cost of legal services to ensure the purchase is handled correctly.
Costs for Resale Properties in Spain
What is a Resale Property?
A resale property is one that has been previously owned and lived in. While the costs differ slightly from new properties, you should still budget for several additional expenses.
A resale property is one that has been previously owned and lived in. While the costs differ slightly from new properties, you should still budget for several additional expenses.
Additional Costs (Approx 10% of the Property Price)
- Transfer Tax: 7% of the property price. This tax applies to resale properties.
- Notary & Land Registry Fees: 1% of the property price. Similar to new properties, these fees cover the costs of documentation and registration.
- Legal Fees: 1-1,5% of the property purchase price plus 21% VAT. This is for legal advice and services related to the purchase.
Pro Tip: Always Budget Extra!
To cover all these costs comfortably, it’s wise to set aside an extra 10-12% above the property price. This ensures you’re prepared for all the expenses and can move forward with your purchase with confidence.
Understanding the full scope of additional costs when buying property in Spain can help you budget effectively and avoid surprises. Whether you’re considering a new or resale property, it’s essential to be aware of these expenses. For personalized advice and support with your property investment in Marbella, reach out to us at info@utrust.es. We’re here to help you every step of the way.