Additional Costs of Buying Property in Spain
The purchase price agreed between you and the vendor is not the final price; there are further buying costs to consider. The buying costs are between 11% - 13% of the purchase price - this is a tax to the Spanish state.
As an example, for a property where the price is agreed at 500,000€, the additional costs are 12% or 60,000€ so the final price is 560,000€
When you determine the maximum purchase price you are comfortable with, be sure to calculate your budget with these additional costs in mind.
Buying Cost Breakdown
Property Purchase Tax
On Re-Sale properties the scale is:
- Properties up to 400,000€ pay 8%
- Properties between 400,001€ and 700,000€ pay 9%
- Properties from 700,001€ + pay 10%
On Off-Plan properties, the tax is always 10%, irrespectively of the purchase price.
On top of this property purchase tax, there are other costs:
- Legal fees, 1% (+VAT)
- Notary and Land Registration fees, apx. 1%
- Stamp Duty fees, apx. 1%
So the lowest buying costs are 8% + a, b, c: 11%
The highest buying costs are 10%, + a, b, c: 13%
If you are planning to buy your property with finance, you should anticipate set up costs of apx 2% - 3% of the purchase price, to the bank.
When you are deciding on the price range for your new property, it is wise to factor in all these costs, so you are not disappointed later.