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EXPENSES AND TAXES DERIVED FROM THE PURCHASE TRANSACTION

Once you  have reached  an agreement with the seller on the purchase price,  you must still take into account a number of additional costs, taxes and expenses related to the process of buying the property.

Knowing exactly and in detail each of the tax obligations depends on many factors, since, as you will see, even by regiones the additional costs differ.

Therefore, the expenses to be paid are the following:

1.- THE PRICE agreed with the seller/builder

2.- TAXES, which are different depending on whether they are

– Purchase of New Construction

– Resale/Second Hand Purchase

3.- OTHER EXPENSES, as Notary and registration fees, lawyers, NIE, legal study expenses, etc.


TAXES ON THE PURCHASE OF NEW CONSTRUCTION

The taxes derived from the purchase of a new construction property are 2:

– VAT (Value Added Tax)

– AJD (Tax on Documented Legal Acts)

VAT – VALUE ADDED TAX

It is an estate tax, and is paid directly to the builder/developer. VAT is included in each of the payments to be made to the builder.

Quota: 

AJD – TAX ON DOCUMENTED LEGAL ACTS

Regional tax.  It is paid to the Autonomous Communities immediately after completing the purchase.

Quota:

Purchase natural person:

Purchase through a  Spanish registered company for business activity: 2 %

TAX ON THE PURCHASE OF RESALE PROPERTIES BY REGIONS – ITP

The Tax to be paid is the “PROPERTY TRANSFER TAX“. This is a regional tax, which must be paid immediately after completing the purchase.

It is a tax whose quota varies according to the different regions of Spain:

OTHER EXPENSES RELATED TO THE PURCHASE:

In addition to the taxes derived from the purchase, you must pay other expenses, which are the following:

– Legal expenses: Notary, land registry, lawyer, occupancy license, changes of supplies 2-4%

– Professional expenses: Real estate agent, architects, etc.

EXAMPLE OF EXPENSES AND TAXES VALENCIA

NEW CONSTRUCTION 300.000 RESALE 300.000
VAT 10 % 30.000 ITP 10 % 30.000
AJD 1.5% 4.500 LEGAL EXPENSES 7.500
LEGAL EXPENSES 2,5 % 6.000 AGENCY COMMISSION TO CONFIRM
AGENCY COMMISSION TO CONFIRM
TOTAL EXPENSES 40.500 TOTAL EXPENSES 37.500
PRICE+EXPENSES 340.500 PRICE+EXPENSES 337.500

NEW!  SIMULATOR OF TAXES+EXPENSES + MORTGAGE CALCULATOR

We have created a Simulator/Calculator of expenses and costs which helps you to know the approximate amount to pay on top of the price.

====>   Click here to start to use our PURCHASE COSTS CALCULATOR !

 

 

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