Purchasing Costs

To be safe allow for 10-12% on top of the purchase price for the total cost of the following fees and taxes:

Transfer Taxes

On new residential buildings, direct from the developer VAT (IVA) is charged at 10% of the value of the property, plus 1.5 % stamp duty, and these are paid by the purchaser.

Some good news just out is that the Andalusian government has approved a decree that includes a reduction in the Transfer Tax on the purchase and sale of second-hand homes. Before this, there were three rates set at 8%, 9% and 10% (depending on the property value) but these will now be replaced by a flat rate of 7%. Additionally, there will be a small reduction in Stamp Duty Tax from 1.5% to 1.2%. This could significantly reduce the costs associated with the purchase of a second-hand property. However, this new reduction will be available only until 31st December 2021 and only in Andalucía.

'Plusvalia' is an 'added value' tax based upon the increase of the Town Hall index value of the land only, from the prior (vendor's) purchase to the present sale. Although essentially a sales tax, it is in common practice often paid by the purchaser. As there are several variable factors used in calculating this tax (area of land, location, building volume permitted, period of ownership of the vendor), the amount payable can vary substantially and should be verified before proceeding with the purchase. It will vary between 300 and 1800 Euros.

Notary, registration and lawyers fees

Most lawyers charge around 1%. Notary fees vary between 300 and 840 Euros depending on the type of property. Registration of your property, costs approximately 60% of the notary fees.

Mortgage Fees

When purchasing with a mortgage, you should take into account bank charges. Most banks will charge a 1% mortgage fee for their services.