Property Purchase Expenses in Spain

Purchase Expenses – The cost of buying a property in Andalusia Spain

It is very important to be clear about the costs and taxes when buying a property in Andalusia. Therefore, it is necessary to be very well informed, to do the maths and of course to have professional advice. Check our Buyer Guide here.

Depending upon whether you are buying a new home or a resale, you will either have to pay VAT & Stamp Duty (AJD – Documented Legal Acts), or the Transfer Tax (ITP) respectively.

New Developments 

New buildings from a developer are all those properties that are sold for the first time and have not been occupied before. This type of property is subject to VAT, which is 10% of the purchase price. The Stamp Duty is equivalent to 1.5% of the purchase price. If the property is still under construction and a deposit payment is made, this deposit is also subject to VAT. Read this article to find out 10 essential questions to ask before buying off-plan.

Second Hand or Resales 

The Resales are all those properties that have already been sold previously, once or more. In this type of property, only ITP (Transmission Tax) is paid by the buyer. Stamp duty is already included in this tax. If any deposit is paid before the completion of the property, it is not subject to a proportional ITP; however, the full tax has to be paid on completion.

The transmission tax is subject to the purchase price and depends on the autonomous region where you buy. In Andalusia, it varies according to the purchase price. For example: 8% up to 400,000€, 9% up to € 700,000 and from then on 10%.  It is important to mention that the percentages are added in bands; ie a property of 900,000€ would pay up to 400,000€ at 8% + 300,000€ at 9% + 100,000€ at 10%.

There are other expenses involved in buying a property in Spain that affect both types of purchase, please continue reading.

Notary expenses and Property Registry Inscription Fee 

The notary expenses are usually paid by the buyer and are calculated in relation to the purchasing price. They are likely to be around 0.5%. The expenses related to inscribing the sale in the Property Registry, also paid by the new owner and calculated on the purchase price, can be around 1%. To be safe, it is advisable to calculate 1.5% for both, although it should be lower.
In summary, the official costs related to the purchase of a property in Andalusia can vary from 10% in resales or from 13% in brand new properties. Bear in mind that these fees do not cover those of a lawyer, bank charges or other expenses such as those associated with a mortgage.

Legal advice 

It is very important to have legal advice during the purchase of a property, not only because of the language barrier but for the peace of mind you get from using such services. It is the lawyer’s job to review the contracts, property charges, permits, licenses, coordinate and check all documentation during the whole purchasing process. In addition to all the aforementioned, your lawyer will be able to explain any legal and administrative matters related to the purchase of your property. Lawyers’ fees range from 1% to 1.5% of the purchase price. It may seem a bit excessive, but the tranquillity that is gained is directly proportional.

Mortgage Costs

If purchased with financing, this can lead to several additional expenses. First, the bank must make an evaluation, which usually costs about 600€ and is paid by buyer. Once the finance has been granted, there are the mortgage costs themselves. These expenses may vary according to which bank that has been chosen. It is important to mention that the mortgage will generate additional notary expenses.

Banking expenses

When paying for the transaction, it must be done through a banker’s cheque, even if the operation is carried out without finance. For this purpose, it is necessary to open a bank account to which the funds will be transferred from your country. This transaction cost should not exceed 0.5% of the amount transferred. The banker’s cheque is usually around the same amount.

For further assistance on buying a property in Spain, please contact me directly.

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Since the first moment, Celeste was very professional!! The best ever Real Estate Agent I've met so far! The information provided was very personalized and extended to meet our requirements! The best! Joaquim Soares from Portugal

Celeste is a very professional Real Estate Agent. She knows the area extremely well and is therefore very capable of showing the right properties. She is very customer-focused, friendly and goes the extra mile to keep her clients happy. We are very happy with her help and would recommend her to all who are looking for real estate in the area! Saida & Hachim from the Netherlands

We had desires to invest in Spain, but the distance has slowed us down. For several months, we were in contact with several real estate agents. The one that gave us the most confidence is The Property Agent owned by Mrs Celeste Alonso. We met an exceptional person through the internet following our research, and I must tell you that we are delighted! This beautiful meeting was decisive; it is a person who proves the real qualities of professionalism. She took charge of us from beginning to end. Arrived in Spain in Malaga, she accompanied us for visits to different apartments, and we found a rare pearl thanks to Celeste.  Mr and Mrs Catteau from France

Celeste is the reason we bought our property. Her knowledge of the market and her ability to find gems in the residential real estate sector are second to none. Time and again, she has proven to be reliable and extremely trustworthy. She provided us with immeasurable support during the purchase of our property and, most importantly, while we were decorating and renovating our apartment. Celeste’s network of contacts has been invaluable to us and were key enablers in ensuring a smooth purchase and world-class after-sales care. If you are looking to rent or buy a property, we consider Celeste to be the best at what she does. Don’t settle for anyone else! Five stars! PS: Our dog loves her too! Marzia & Satya from Italy

We decided to work with Celeste from our first conversation by telephone. We liked her approach and very good care of customers. Celeste supported us not only before and during the purchase, but also after the purchase was successfully completed. Celeste really helped us a lot. We are happy that in Spain we have a great friend of ours! Be sure that we will recommend Celeste like the best Real Estate Agent in Spain. Dana & Andrew from Poland

Jo and I would like to thank Celeste for the very professional service that she gave us when we decided to move from France to La Alcaidesa. She was spot on in understanding our requirements and, when we found the right property,  she ensured that the whole conveyancing process went through very smoothly and quickly. But what impressed us was that, after we moved in, Celeste ensured that we discovered all the local services in the area. This was our 5th house move and we can honestly say that she helped to make this the easiest. Mike & Jo from the UK    

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