The intent of this guide is to help you better understand the steps and decisions you will need to make during the buying process of a property on the Costa del Sol. Some of the details will vary depending on your specific circumstances, so don’t hesitate to ask our real estate agents if you have any questions.
Summary for Buying Costs in Costa del Sol (Estimated and Excluding VAT)
- Agency Fees Unless the buyer has specifically agreed to pay the agent’s fee this cost will be built into the sale price.
- Legal Fees Most charge around 1% of the sale price which is applied to the closing costs. You are strongly advised to hire a lawyer to help you during the buying process.
- Power of Attorney Around 80 Euros depending on the Notary.
- NIE (Identity Number for Foreigners) 150 Euros though sometimes included in Solicitor fees.
- Land Registry Reports and Certificates These documents show current legal state of properties and any problem with the title deed or land registry. 100 Euros.
- Town planning Certificate Granting access to a clean bill for any planning or urban issues.
- Mortgage costs The property valuation before granting the mortgage, paid by the buyer can cost around 500 Euros. Then there is usually an opening fee of around 1% of the value of the mortgage. A mortgage will increase the Notary expenses.
- Notary Expenses Notary expenses are nearly always paid by the. You should calculate Notary fees as being between 1% and 0.5% of the price declared in the deeds. Property registration fees are normally around 40% of the notary fees.
- Property Registry Inscription Fees You should calculate 1% of the purchase price declared in the deeds, though once again it depends upon the property and the area, and the fee could be considerably lower.
- Banking Costs To pay for the property, you will more than likely need to write a banker’s cheque. Tou will a Spanish bank and transfer money from the bank in your country. The cost of transferring the money can go up to 0,4% of the amount transferred. The banker’s cheque will most likely cost 0,5% of its amount.
Stamp Duty (A.J.D) and Transfer Tax (I.T.P)
- New build from a developer or bank.
VAT & Stamp Duty (IVA & Actos Jurídicos Documentados – AJD)
At present VAT (known as IVA in Spain) is 10% on the purchase price of residential properties (villa, apartment, etc), and 21% for commercial properties and plots of land, with the exception of the Canaries. Both VAT and Stamp Duty are paid by the buyer.
- Resale from a private individual.
Transfer Tax (Impuesto sobre Transmisiones Patrimoniales – ITP)
The Transfer Tax rate is ceded to the autonomous regions, who can choose to apply the general rate, or their own rate. The rate in Andalucía is as follows:
8% – if the final price of the property is under 400.000€
9% – if the final price of the property is between 400.000€ and 700.000€ or between 30.000€ and 50.000€ for garages.
10% – if the final price of the property is over 700.000€ or 50.000€ for garages.
In Summary, costs will range between 10% and 12% for resale properties and between 12% and 13% for newly constructed developments.