Fiscal and legal represent the most complicated aspects in the processes of purchase, sale or lease.
In particular, when it comes to the acquisition of a property, the first factor you should consider is the nature of the purchase:
Are you buying a new construction or a second-hand one?
The percentage of each tax will vary from case to case.
Let’s look at them together.
VAT and ITP
First, VAT is a tax that applies exclusively to a new property. It is not variable and it is equal to 10% of the purchase price.
Secondly, the ITP (Property Transfer Tax) needs to be paid only for a second-hand construction. It has a variable cost, as the value of the tax changes along with the price of the house. Therefore, three different situations can arise:
- If the price amounts to less than 400,000 euros, you will have to pay 8% of the sale price.
- In case of a price range between 400,000 and 700,000 euros, you will have to pay 9% of the total value.
- When the price reaches more than 700,000 euros, then the PTT will correspond to 10% of the total price.
Finally, in case of having bought a plot for the construction of a property 21% VAT would apply.
AJD stands for Stamp Duty and consists of a tax with the function of sealing your legal documentation.
It applies only to new properties and corresponds to 1.5% of the total value.
During the purchase process, if you want to make a legal act as public, you will have to provide the notary with the documentation so as to seal it.
You will be charged around 1% (plus VAT) on the selling price. However, depending on the value of the property, either for a new construction or a second hand, the fee ranges from a minimum of 500.00 euros to a maximum of 3,000 euros.
Despite the property registration is not mandatory in Spain, we recommend carrying it out in order to avoid any eventual complication.
Property registration fees amount to approximately 1% of the sale price.
More specifically, depending on the size of the house, the total purchase value as well as the municipality where the property is registered, and regardless of the nature of your purchase, the cost varies from a minimum of 400.00 euros to a maximum of 1,500 euros.
Due to the implied variables, it is not possible to establish a list of fixed prices for each municipality.
After the theory, let’s take two practical examples.
- Mr. and Mrs. Brown have just bought an apartment in a newly built complex in Mijas for 125,000 euros.
After the purchase and all the legal verifications, the administrative costs will reach 11.9% of the selling price, so that the real price of the house will be equal to 139,875 euros.
- Mr. and Mrs. White have just bought the property of their dreams, outside the city of Malaga, for 630,000 euros. The real price of the house will correspond to a total of 687,330 euros, with 9.1% of administrative costs.
Blancareal provides all kinds of administrative, legal and fiscal services.
Contact us: our team of experts will be happy to help you solve any type of problem or provide you with any additional information you might need.