See below for an estimated summary of charges for buying a property in Spain
8% IVA transfer tax based on the purchase price for properties up to 400.000 euros
9% IVA transfer tax based on the purchase price for properties from 400.001 to 700.000 euros
10% IVA transfer tax based on the purchase price for properties over 700.001 euros
This rate increases to 16% for land, commercial premises, or garage spaces
1% legal fees plus IVA 21%
2% Notary- land registry and stamp duty
Note: Plusvalia should be paid by the sellers best to check with the lawyers that this has been done
Mortgages in Spain are reasonably easy to obtain personal circumstances permitting.
Understanding the jargon!
Avocado thought this might help in your understanding of the jargon you here that sometimes isn’t fully explained!
NIE numbers: NIE numbers are Spanish fiscal registration numbers and all purchasers need to have one. The amount covers the full application process with associated costs to official bodies plus the first registration with the fiscal authorities
IVA: Spanish Tax
Power of Attorney: An undertaking that allows your lawyer to act on your behalf
Nota Simple: Searches done on a property for mortgage arrears, debts and such things that would affect the purchase
Legal Fees: Fees your lawyer will charge for representing you throughout your purchase, normally 1% or a minimum of 1200 euros. Plus IVA at 21% Your lawyers service should include the following:
- Guidance & instruction
- Due diligence of documents
- Searches and checking encumbrances
- Preparing the private purchase contract
- Preparing contracts
- Exchanging contracts and securing deeds
- Notary visits
- Setting up bank accounts