Taxes and fees related to buying a property in Spain in 2023
Correctly estimating the budget needed to buy a property in Spain is as important as choosing its location. That is why we have prepared an up-to-date list of taxes and other fees applicable in 2023 when buying a property on the Iberian Peninsula.
Before we present what taxes and additional fees are - we remind you: all offers published by sellers (offices, agents, developers) are expressed in net prices.
What are the taxes related to buying a property in Spain in 2023?
When buying a property in Spain you have to pay tax:
- VAT in the amount of 10% in the case of real estate from the primary market
- ITP (Impuesto de Transmisión Patrimonial) for secondary market properties: from 4 to 10%
The amount of ITP tax is not the same throughout Spain. It varies by province. For example, in Andalusia this tax is 7%, and in the popular Alicante: 10%.
For properties worth more than € 3,000,000 – we will have to pay, depending on the province: an enrichment tax or a solidarity tax on large fortunes. Depending on the value of the property, it ranges from 1.7% to over 3.5%.
Notary costs and IAJD when buying a property in Spain in 2023
The amount of notary fees when buying real estate in Spain is approx. 0.2-0.5% of the value of the property and the registry: approx. 0.1-0.25% of the value of the property. In some cases, you will also have to pay the IAJD - Impuesto de Acto Jurídico Documentado - depending on the province and the value and purpose of the property: 0.4-1.2% of its value.
Good to know!
Reliable and meticulous legal verification of real estate is necessary if we want to avoid later problems. A good law firm checks literally everything and even seeks unofficial information from the neighbourhood to prevent any unforeseen situations and subsequent expenses.
At this point, it is worth mentioning that all contracts between the seller and the buyer should be constructed in such way as to clearly present the issues of fees that accompany the operation of taking ownership. Sometimes nuances that are not paid much attention to can save us several hundred euros . For example, a clause stating that notarial costs are covered by the party "according to the law" is something else than "according to the custom of the place".
Taxes and fees related to buying a property in Spain - summary
10-12% of the amount should be added to the price of real estate from the secondary market to cover taxes and other services related to the purchase. As for real estate from the primary market, we are talking about 13-15% of additional costs.