REAL ESTATE – MARBELLA – Do you know the taxes to pay when buying a home in Marbella – Spain?

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Do you know the taxes to pay when buying a home in Marbella – Spain?

If you are looking to have a property in Spain, it is important that you know what taxes are paid when buying a house. Although the amount varies depending on the price of the home, it is convenient to take them into account before launching to buy.

VAT on new construction homes

Depending on whether the property is new or second-hand, and whether a mortgage has been formalized or not, we will have to pay one or more taxes on the purchase of a home, which may also vary depending on the autonomous community.

In the case of new homes, VAT is applied, which is the same throughout the Spanish territory: the reduced rate of 10% in general and the reduced rate of 4% in some cases, such as the purchase of an officially protected home. .

The only exception is the Canary Islands, where 6.5% is applied generally or reduced from 3% for social housing.

Property Transfer Tax

In the case of a second-hand home, the Property Transfer Tax is applied, the management of which is assigned to the autonomous communities. Each region therefore applies its own tax rate and its own tax credits according to the personal circumstances of the taxpayer.

Tax on Notary or stamp duty

The Documented Legal Acts Tax levies the legal documents necessary to transfer the property, for which a percentage is applied to the property’s title deed value. The latter ranges between 0.5% and 1.5%, since it varies in each autonomous community.

Other expenses derived from the purchase of a home

Notary

The purchase of the home has to be done in a public deed, so a notary is always involved. The cost of this procedure depends on the number of copies of the deed and the amount of the operation, because the fees charged by the notary are fixed and are regulated by the State.

That is, all notaries charge the same for this service, although it is possible that they may apply a discount.

Property registration

The public deed of the purchase of the house must be registered in the Property Registry, once it has been signed by the notary. Although the price depends on the value of the property, it usually varies between 400 and 650 euros.

Appraisal

The appraisal is required by banks in case of having to grant a mortgage to know what percentage of financing they can grant. In 2021, the appraisal involves a cost of between 200 and 600 euros, depending on the entity that carries out the appraisal, the type of property and its valuation.

The appraisal is valid for 6 months from the date of issue.

We hope we have solved all your doubts, if you still have more questions, get in touch with us and we will be happy to help you

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