Fees and taxes to pay when buying property in Spain

At the time of purchase, the foreign buyer must pay some taxes and fees to the state. Whether resident or non-resident in Spain, the buyer must pay the Spanish state for all taxes and fees derived from the purchase of their new home, which are paid only once and usually amount to around 10-12% of the property value.

Among them:

1-VAT (Value Added Tax). It applies to new homes and currently amounts to 10% of the purchase price for the entire country, except for the Canary Islands, where it is regulated by IGIC and amounts to 7%.

2-AJD (Documented Legal Acts). The first transfer homes, in addition to VAT, must pay AJD, a regional tax that amounts to between 0.5% and 1.5% of the purchase price. This means that each autonomous community sets its own percentage of this tax, so the amount to be paid will vary from one community to another.

3-ITP (property transfer tax). Second-hand housing is exempt from VAT, but is subject to ITP tax. The tax rate for this tax ranges between 6% and 10% of the transaction value and is fixed by the autonomous communities.

4-Notary. Notaries in Spain charge a fixed fee for the provision of a public deed, and the cost of the same will vary depending on the value of the property to be considered. Generally, this expense is 0.5% of the value of the house.

6-Registration. The public deed must be registered in the Property Registry and the cost will also vary depending on the value of the property so that it does not exceed 0.3% of it.