The vendor is responsible for paying the brokerage fee. . It is normally between 3-7% . Also the vendor is liable by law to pay a land appreciation tax (plus Valia ) and his Capital Gains tax. All taxes are calculated by the Municipal tax office.
The buyer pays for the rest of the fees and taxes and these are as follows: Your lawyer would usually charge about 1 % of the purchase price. Transfer Tax ( Impuesto de Transferencia de Propiedad ) payable at 8% of the purchase price if the house is a resale + a stamp duty ( Impuesto Actos Juridicos Documentados ) at 0.5 %. If the house is new and you are the first person to live in the house, you must pay 10% Spanish VAT (IVA) plus 1% stamp duty ( Impuesto Actos Juridicos Documentados ). However, if you buy land, commercial property or a garage a tax 21% is applied. Loan mortgage cost is 1% of the loan amount + the value of future interest payments. Normally, this will be about 1.75 % of the loan.
As a buyer, you should calculate an extra 12% in addition to the purchase price if it is a used property. If you buy a newly built property, this cost is approximately 14%. When a property is sold in Spain the Capital Gains Tax paid by the vendor. In accordance with the Spanish tax law, the buyer shall retain 3% of the sales price to ensure that the vendor pays his dues to the Tax authorities. This amount corresponds to the amount that sellers have earned in capital gains on the sale date. This gain is the difference between what the seller paid when they bought the property and what it sold for plus any the improvements and possible extensions made during the time they have owned the property.
Buyers fees & taxes
- 8% stamp duty to the Spanish State on second-hand property up to 400,000 euros and 9% of houses between 400,000 to 700,000 euros and 10% on prices over 700,000 euros.
- 10% VAT + 1% stamp duty for new projects
- 2% costs to the notary and land registry
- 1 to 1.5 % legal fees
- ½ - 1% mortgage
"Plus Valia" which is a tax based on the rateable value of property
- Capital Gains Tax on profits