Whoever buys a home in Spain must calculate that, in addition to the purchase price, they will have to face various expenses arising from the operation.
The amount will depend, mainly, on whether it is a new or second-hand home, on the autonomous community in which the property is located, and on whether it needs mortgage financing.
If you buy a new home
In the purchase of a new home, the main expense corresponds to taxes.
The buyer must pay:
- VAT, which generally is 10% of the price of the home. In official protected homes of special regime, a reduced rate of 4% may apply.
- Tax on Documented Legal Acts (AJD), whose rate varies according to the autonomous community.
In addition, they will have to bear the expenses arising from the deed and its registration.
If you buy a second-hand home
In this case, VAT is not paid.
The main tax is the Tax on Property Transfers (ITP), whose percentage also depends on each autonomous community and may vary depending on the value of the property or the circumstances of the buyer.
In some regions, there are bonuses for young people, large families, people with disabilities, or buyers of a habitual residence.
Notary and Property Registry
The buyer must also pay:
Notary fees
The notary authorizes the public deed of sale. Their fees are regulated by law and depend, among other factors, on the price of the property and the content of the deed.
Property Registry
Once the sale is signed, the home must be registered in the Property Registry so that the buyer officially appears as the new owner.
The registration fees are also regulated.
Management
The management is not always mandatory.
However, when there is mortgage financing, it is common for a management company to process the tax settlement and the registration of the deed.
If there is no mortgage, the buyer can carry out these procedures personally.
And what if you buy with a mortgage?
Since the entry into force of the Law 5/2019 regulating real estate credit contracts, the distribution of expenses changed significantly.
The financial institution assumes, among others:
- The notary fees corresponding to the mortgage loan deed.
- The registration of the mortgage in the Registry.
- The management linked to the loan.
- The Tax on Documented Legal Acts of the mortgage.
The buyer, for his part, continues paying:
- The appraisal of the property (unless the bank decides to assume it).
- The additional copies of the deed that he requests.
- The expenses related to the purchase and the corresponding taxes for the acquisition of the home.
What does the seller pay?
Although many buyers are unaware, there are expenses that correspond to the seller.
Among them, the following stand out:
- The municipal capital gains tax, unless otherwise agreed between the parties.
- The cancellation of pending charges, if there are any.
- The taxation for the possible capital gain in the IRPF.
It is advisable to calculate all costs before signing
Before formalizing the purchase, it is advisable to request a complete estimate of all expenses to avoid surprises.
Taxes, notarial fees, registration fees, or possible mortgage costs can raise the initial outlay by several thousand euros, so it is advisable to incorporate them into the budget from the very beginning.