Purchasing costs

Purchasing costs


The average costs associated with the property transfer range between additional 10% and 12% for the resale properties (“Segunda mano” or “Segunda transmisión”) and between 12% and 13% for new developments and off-plan properties (“Obra nueva” or “Primera transmisión”).

NEW DEVELOPMENTS:
  1. VAT: For new residential objects straight from the developer the IVA (VAT) is charged at 10% of the value of the property.
  2. STAMP DUTY: Also additional 1.5 % of the property value are paid for the stamp duty by the purchaser. (AJD or “Actos Jurídicos Documentados”)
  3. NOTARY COSTS: Depending on the value of the property the notary fee can vary between 500 EUR and a maximum 3.000 EUR. Generally, you should calculate 0,5% of the selling price.
  4. LAND REGISTRY: Depending on the municipality the land registry costs can vary between 400 EUR and 1.500 EUR. Generally, you should calculate 0,5% of the selling price. Marbella land registry results for example in higher charges than the ones in Malaga.
RESALE / SECOND-HAND PROPERTIES:
  1. NOTARY COSTS: Depending on the value of the property the notary fee can vary between 500 EUR and a maximum 3.000 EUR. Generally, you should calculate 0,5% of the selling price.
  2. LAND REGISTRY: Depending on the municipality the land registry costs can vary between 400 EUR and 1.500 EUR. Generally, you should calculate 0,5% of the selling price. Marbella land registry results for example in higher charges than the ones in Malaga.
  3. LAWYER FEES: Most lawyers calculate their fees at around 1% of the property price, which will be applied to the closing costs. We strongly advise you to hire a lawyer to help you during the property buying process. You can also be assisted by our in-house adviser or by a lawyer if desired.
  4. PLUSVALIA: Plusvalia is an “added value” tax calculated on the basis of several variable factors (location, area of the property, allowable volume of construction, length of ownership of the seller). This tax represents the value growth in accordance with the Town Hall index value of the property, from the previous purchase to the current transfer. The amount can vary between 300 and 1900 EUR.
  5. ITP or “Impuestos de transmisión patrimonial”: For existing re-sale properties the property transfer tax rate (Impuesto Sobre Transmisiones Patrimoniales – ITP) is determined by the autonomous regions, which can choose either to apply their own specific or the general rate. The rates in Andalucía are composed as follows:
  • 8% on the amount of property not exceeding 400,000 EUR
  • 9% on the amount of property between 400,000 and 700,000 EUR
  • 10% on the amount of property exceeding 700,000 EUR
MORTGAGE FEES:

When purchasing property with a bank mortgage, you should consider bank charges. Generally, most financial institutions will commonly charge 1% mortgage fee of the value of the mortgage. A mortgage will also increase the Notary expenses.

PROPERTY VALUATION:

The property valuation is necessary before granting a mortgage. Property Valuation is usually paid by the buyer costs around 500 EUR.

AGENCY FEES:

Unless the buyer has expressly agreed to cover the brokerage fee, these charges will be included in the property sale price.

POWER OF ATTORNEY:

Depending on the Notary approximately between 70 – 85 Euros

LAND REGISTRY REPORTS AND CERTIFICATES:

These documents reveal the current legal state of properties and any problem with the title deed or land registry.

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