FEES AND TAXES
Spanish property purchase attracts fees and taxes, which total around 10%. The notary's fee scale is fixed by law and will be a minimum of € 300.
The property registration fee, for inscribing the property in your name in the registro de la propiedad, should be about € 20 to € 300.
Either transfer tax on resale properties is charged at 7% of the new escritura value, or on new properties, sold by a promoter, a different tax, I.V.A. (VAT) is charged at 7% of the selling price plus 1 % stamp duty. Another tax is called plusvalia (local municipal tax) and varies widely. The tax is based on an officially assessed increase in the value of the land, since the last time the property was sold. Usually small for an apartment, but expensive on houses with large plots, not sold for years. Find out the exact amount from the town hall. Do not confuse this tax with the seller's capital gains tax on his profit on the sale.
In accordance with Spanish law, the buyer is responsible for,
Transfer Tax (I.V.A. + stamp duty when buying from a promoter)
The seller is responsible for:
• His own capital gains tax on any increase in escritura value
• Plusvalia
• Notary fees
• Selling agent fees.
In practice "who pays what" is negotiated with the final selling price and this must be stipulated, as well as listing the contents/fittings to be included in the sale, when the owner accepts your final offer (in writing).
REGISTER THE PROPERTY
The property must then be registered in the Property Registry office, in an Escritura Publica.
Once you have signed at the notary, get this done quickly to prevent a mortgage or other charge being registered against the property, while it is still listed in the name of the seller. .
THE RIGHT ESTATE AGENCY!!!
Once again, an experienced Estate Agent such as Bahia Estates can help you through all of these steps by working with your lawyer to ensure you are fully protected legally. Just make sure you choose the right Estate Agent.
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