Taxation upon purchase depends on the status of the seller and the location of the property. To these costs are added lawyer's fees and agency fees.
If the SELLER is a natural person
The buyer must pay the following taxes and fees:
- Tax called "Impuesto sobre Transmisiones Patrimoniales" equivalent, depending on the region, to 6% - 10% of the purchase price.
- Fees from the Notary (notarial deed of sale) and the Mortgage Registrar (registration of the notarial deed of sale), of approximately 0.5% - 1.2% of the purchase price.
If the SELLER is a legal entity (a developer)
For a “first-hand” acquisition, that is to say for a new property or sold for the first time since its construction.
The buyer must pay the following taxes and fees:
- VAT (called IVA in Spain) equivalent, depending on the region, to 8% - 10% of the purchase price.
- Tax called "Impuesto sobre Actos Jurídicos Documentados" equivalent, depending on the region, to 0.75% - 2% of the purchase price.
- Fees of the Notary (notarial deed of sale) and the Mortgage Registrar (registration of the notarial deed), of approximately 0.5% - 1.2% of the purchase price
The payment of VAT by the buyer in an acquisition of real estate can be advantageous if the buyer is himself subject to VAT.
There is then no VAT to pay, and taxation is the same as when the seller is a natural person.
If the buyer is a legal entity carrying out an economic activity, the parties may however subject the acquisition to VAT in order to be able to recover it.
