Purchasing Costs
At a Glance
- Total additional costs: ≈ 10–12% of purchase price
- New-build transfer tax: 10% VAT + 1.5% Stamp Duty
- Resale transfer tax: Flat 7% + 1.2% Stamp Duty
- Plusvalía tax: €300 – €1 800 (dependent on land value uplift)
- Notary & registration: €300 – €840 + 60% of notary fees
- Legal fees: ≈ 1% of purchase price
- Mortgage fee: ≈ 1% of loan amount
1. Transfer Taxes
On new residential buildings purchased directly from the developer:
- VAT (IVA): 10% of property value
- Stamp Duty: 1.5% of property value
Good News: Andalusia has reduced resale transfer tax to a flat 7% and stamp duty to 1.2%, cutting costs on second-hand homes.
2. Plusvalía Tax
This tax is based on the increase in the Town Hall’s land value index between vendor purchase and your sale. Although legally the vendor’s responsibility, purchasers often pay it.
- Calculated using land area, location, permitted build volume & vendor’s ownership period
- Typical range: €300 – €1 800
- Tip: Confirm the exact amount with your solicitor before proceeding
3. Notary, Registration & Legal Fees
These are mandatory for all property transactions:
- Legal fees: ≈ 1% of purchase price
- Notary fees: €300 – €840, depending on property type
- Land registry: ≈ 60% of notary fees
4. Mortgage Fees
When financing your purchase, banks typically charge:
- Mortgage arrangement fee: ≈ 1% of the loan amount