COSTS, FEES AND TAXES

As a general rule you need to add approximately 10% to your base purchase price (excluding mortgage arrangement fees) to cover all your essential fees and taxes and these are broken down as follows:

VAT (IVA) or Transfer Tax (ITP)

IVA applies to off-plan purchases whereas ITP applies to re-sale properties. Both are currently 7%. IVA is payable with each instalment, whereas ITP is payable on completion.

Plus Valía

This is a one-off tax levied by the Local Authorities and is calculated by reference to the increase in value of the land since the last sale of the property/land. For most purchases this tax will amount to only a few hundred Euros and is normally payable by the vendor on completion.

Legal Fees

Conveyancing fees will be charged by a Spanish Conveyancer for representing you and these are normally a percentage of the purchase/sale price plus VAT at Spanish rates.

Notary, Land Registry and Gestoría Fees

These are the fees associated with the witnessing and subsequent registration of your title deeds. Notary fees range according to a scale fixed by law and are between 300 to 1200 Euros. Land Registry fees are generally about 20% less than the Notary’s fees. Gestorías are official intermediaries between individuals and government bodies, such as the tax office and the land registry. Their fees are generally about 300 Euros plus VAT. Your Conveyancer will liaise with the Gestoría until the land registry has returned your title deeds.