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How much is to buy a new property in Spain?

5 April 2017

Costs of buying a new property or land in Spain

TAXES TO PAY FOR NEW PROPERTIES

New build properties from a developer or from the bank sold for the first time, have a National Tax called IVA in Spanish. This represents the 10% over the total buying price of the new villa or apartment you are purchasing. Also if you are buying a commercial property or unit then you'll pay 21% IVA.

The Stamp duty; known as AJD- Actos Jurídicos Documentados, a tax that goes from 0,1 to 2% of the price of purchase, depending on the region you are purchasing and also this percentage will change if it's the first time you buy a property or if it's your second one, so be sure to check the updated rate. For example the AJD to buy a new property or land here in Costa Blanca, Alicante is: for first time buyers 0.5% and for home owners (second residency) 2.5%

Both taxes (VAT and Stamp Duty) are paid by the buyer, also you have to take into account that if a deposit is paid before completion of the sale (which is a standard transaction), such deposit will be subject to VAT at the moment of payment.

Other expenses you should take into account when buying a property in Spain also applied to second hand properies:

  • Legal fees: having your own independent lawyer is advisable unless you work with a trustworthy real estate company. The legal cost for the assistance of the purchase with no complications can be from 1.000 to 2.500 Euros.
  • Mortgage costs: if you have to take a mortgage in Spain then check with all the bank the interests for resident and non-residents which can change considerably.
  • Notary Expenses: it varies from type of property between the 0.5% and 1%, we normally advice to keep 1.000€ to cover this expense.
  • Property Resgistry Inscription fee: from 0 to 1% depending on the region and the square metres.

These are all the expenses you'll have when buying a newly built house here in sunny Spain, we hope you found all of this information useful. If you'd like to see the newly built developments, plots of land and commercial properties we have in Guardamar, Torrevieja, La Mata and generally in Orihuela Costa please click on the links.


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