The cost of your Spanish home!
Back
Taxation depends on the purchase of a new or existing home. If you buy an existing home, transfer tax is levied, the so-called impuesto sobre transmisiones patrimoniales (ITP). The standard rate is 10%. The ITP is the largest cost item.
If you buy a new home from a contractor or project developer of which you are the first owner, you do not pay ITP, but VAT in Spain is called IVA (Impuesto sobre el Valor Añadido). The rate of 10% applies to the IVA.
However, when purchasing a new home, an additional AJD tax applies. (Actos Juridicos Documentados). The rate varies per province and per municipality and varies from 0.5% to 1.5% of the deed value of the house.
The notary fees charged in connection with the passing of the purchase deed amount to 0.5% to 1% of the value of the home. For the registration of the house in the land registry office, the costs are between 0.3% and 0.7% of the value of the house.
Example purchase and annual costs of your Spanish property:
One-off purchase costs:
House price € 200.000,-
IVA or AJD 10% € 20.000,-
Notary Cadastre +/- € 2.500,-
Total costs € 222.500,-
Possible lawyer costs +/- € 2.000,-
Annual costs:
(house € 200.000,- | 2 owners)
IBI (real estate tax) € 400,-
IRPF (income tax non-residents) € 340,-
Communal service
(swimming pool, lift, etc) +/- € 1000,-
Fiscal representation +/- € 160,-
Total +/- € 1900,-
