Purchasing real estate in Spain offers an attractive investment opportunity, but it's crucial for both foreign and domestic buyers to understand the associated costs beyond the purchase price. These transaction expenses typically range from 10% to 15% of the total price, encompassing various mandatory and additional charges.
Key Mandatory Costs Explained
The most significant expense among these is the property transfer tax, which varies by region and property type, usually between 6% and 10%. Notary and land registry fees follow, generally making up 1% to 2% of the total property value. It's essential for buyers to budget for these unavoidable costs appropriately.
Additional Expenses to Consider
Beyond taxes and basic fees, legal charges typically range from 0.5% to 1.5%. If a mortgage is involved, additional costs such as bank commissions and valuation fees can add another 1% to 2% of the loan amount. These should be factored in when calculating the full cost of purchasing a property in Spain.
Specific Costs for New Builds
For those buying new builds, a VAT of 10% is imposed along with a stamp duty of 1% to 1.5%. These costs highlight the importance of understanding every financial obligation involved. Small additional fees may apply for administration and translation services, with some regions imposing extra taxes for certain properties.
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