The sale is considered completed when the public deeds are signed in front of a Spanish Notary, the agreed payment for the property made, and the possession of the property given to the purchaser. Costs involved in purchasing property are as follows: 7% TRANSFER TAX (I.T.P.) payable by the buyer for the purchase of any Real Estate (villas, flats, land, commercial premises, garages), provided the vendor is not a developer or normally trading in the business of re-sales.
* 8% (7% VAT and 1% STAMP DUTY) for any VILLA, TOWNHOUSE, APARTMENT or GARAGE annexed to an apartment where the vendor is a developer, promoter or habitual trader in these properties. This covers virtually all new construction and re-sales where, for example, one is purchasing from an investment company who purchased for resale.
* 17% (16% VAT and 1% STAMP DUTY) for PARCELS OF LAND, COMMERCIAL PREMISES, or COMMERCIAL GARAGE SPACES, where the vendor is a developer, promoter or habitual trader. This covers virtually all NEWLY URBANIZED LAND PARCELS and NEWLY BUILT COMMERCIAL PREMISES, and re-sales only where the vendor falls in one of the above mentioned categories.
NON LET PROPERTY - THE PECULIARITIES
. Notary and Property Registry fees: These two fees should amount to no more than approx € 900 for smaller properties up to for example € 90.000 in value, and, as the value of the property increases, the percentage of these costs diminishes - i.e. € 180.000 property may cost in the area of € 1.082 for notary and inscription fees, and for properties above this figure the fees are increased only nominally. (Notary and Property fees, Not higher than € 1 .500)
. The Plus Valia tax has been described above and can be as little as a couple of Euros or as much as several thousands of Euros on a property with a lot of land that hasn't changed hands in many years. This tax must be quantified and negotiated with the seller during the negotiation stage.
. In Summary, the total official costs involved in purchasing property should be around 8% - 10%, more or less for re-sale properties, or 8 - 11 % if VAT is paid of the purchase price, plus the Plus Valia if applicable. Lawyer's fees are in the order of 1% - 1,5 % of the selling price, depending on the lawyer. Agents are paid by the seller unless otherwise agreed. Locating and purchasing a property in Spain can be as simple or as complicated as one wants to make of it. Using sincere and well-recommended professionals always helps to save time, money and trouble.
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