Expenses for Buyers
You should add approximately 11% to the purchase price of the property to cover the taxes and expenses that will arise during the purchasing process. These include:
The amount you have to pay will depend on the purchase price declared on the title deed.
Value Added Tax (I.V.A.) for new properties only
If you have bought a new home (with a garage) you must pay to the builder 7% I.V.A. on the price declared on the title deed. If you have bought a business or a garage without a home you must pay to the builder 16% I.V.A.
If you have bought a re-sale property or a plot of land you will have to pay 7% tax based on the price that appears in the title deed. If you have bought a newly constructed property and have already paid the I.V.A. you must also pay 1% tax based on the price that appears on the title deed.
Land Registry Fees
The amount you will have to pay depends on the purchase price declared on the title deed.
Land Value Tax (Plus Valía)
This tax is levied by the local town hall and it is paid from the vendor once the property has been sold. It is calculated on the increase in the value of the land since it was last sold. This tax is usually paid by the seller, but in some areas it is paid by the buyer.
You will need to pay for the services of your asesoria/gestor who will be happy to tell you in advance how much these costs are likely to be.
Mortgage Arrangement Fees
The cost of arranging a mortgage is likely to add about 2% to your overall buying costs which could bring your total costs to around 13% of the value of the property.