Buying Process - Costs involved in buying Property in Spain
Buying Property in Spain, and, Property Taxes in Spain

The buying process in Spain is somewhat different to the UK but it is possible to complete the purchase within weeks instead of months. The following guide shows the usual process for buying property in the Andalucian Region of Spain.

  Secure the property with an Initial Deposit, usually €6,000
  Appoint an independent Lawyer/Solicitor (Abogado). With Power of Attorney if necessary
  Obtain an N.I.E. (Foreigners Tax ID number, your Lawyer will arrange)
  Private Purchase Contract is signed and this usually takes place within two weeks
 For resale property 10% of the purchase price is paid to the vendor ((less initial deposit)
 Date for completion is mutually agreed between buyer and vendor.
 Completion takes place at the Notary´s office with the title deed (Escritura)
 The property is registered with the Land Registry upon completion

Note: The Lawyer usually arranges the opening of a Spanish Bank Account and sets up contracts for the essential utilities on behalf of the new owner.

Costs Involved in buying Spanish property:

As a reasonable guideline you should budget for an additional 11% over and above the full purchase price (13% if a Mortgage is required) to cover: Applicable from 01 January 2012.

  New property purchase – 8%* IVA (VAT) on purchase price plus 1.2% Stamp Duty (AJD)
    *Special Note: 50% Reduction in IVA (VAT) tax, now only 4% on new properties bought from
     developers has been extended by the Spanish Government until the end of 2012

  Resale property purchase: Property Transfer Tax (ITP)

Transfer Tax for resale property purchases will be calculated according to the following rate:

Any amount up to €400,000 - 8% Transfer Tax
Any amount between €400,000 and €700,000 - 9% Transfer Tax
Any amount in excess of €700,000 - 10% Transfer Tax

As an example, a property valued at €750,000 will be subject to €64,000, which is based on the following calculation:

8% up to €400,000 - €32,000
9% between €400,000 and €700,000 - €27,000
10% over €700,000 - €5,000

Transfer Tax applicable for a private parking space, when purchased as an independent property, will be based on the following rate:

Any amount up to €30,000 - 8% Transfer Tax
Any amount between €30,000 and €50,000 - 9% Transfer Tax
Any amount in excess of €50,000 - 10% Transfer Tax

  Land purchase – 18% ITP plus 1.2% Stamp Duty (AJD)
  Notary costs - (approx €900 on a purchase price of €120,000)
  Lawyers fees - 1% plus IVA* of purchase price (subject to a minimum charge)
  Property Registration fee - (approx 40% of the notary fees)
  IVA @ 18% (VAT) payable on Notary and Lawyers fees.
  Power of Attorney (approx Euros 150)
  Número de Identificación de Extranjero (N.I.E.) (approx Euros 125 per person)

Note: Standard IVA (VAT) in Spain on other goods is 18%

All costs are estimates and for guidance only.

Power of Attorney: If you do not plan to be in Spain for the completion you will need to appoint your Lawyer in Spain with Power of Attorney to be able to facilitate the transaction in your absence without unnecessary delays. A Power of Attorney can be drafted by your Lawyer for your signature at your nearest Spanish Consulate if you are unable to be in Spain.