Taxes for buying property in Andalusia


Taxes for buying property in Andalusia - homeandhelp.com

While considering a budget for buying your dream home in Spain do not forget about taxes! Home and Help provides its clients with qualified experts who are able to find the most advantageous solutions for potential buyers willing to obtain property in Andalucía.

Generally, the approximate costs for buying estate in Costa del Sol are about 10% of the agreed price; likewise, the costs vary according to the property price: the higher is the price, the higher is the tax.

     

 

 

 

 I.          SECOND-HAND PROPERTY:

ITP (Impuesto de Transmisión Patrimonial) or Property Transfer Tax is applied in case of buying second-hand property. The amount of the levy varies in accordance with the property price:

§  0€ - 400.000€ ———— 8%

§  400.000€ - 700.000€ —- 9%

§  700.000€ and higher —– 10 %

There are exceptions to this tax. The levy is 3.5% if the following requirements can be applied:

§  The price of the house is less than € 130,000

§  The house would be the buyer's habitual residence

§  The buyer at the time of signing is less than 35 years old

    II.          NEW PROPERTY:

IVA (VAT)– Value Added Tax, that is, the tax levied on the first-hand property transfer. If you are buying brand new property from the bank or directly from the constructor, you must pay VAT, which is 10%.

However, if it is a VPO property – social housing – the VAT is stated as 4%.

 AJD (Actos Jurídicos Documentados) - Whenever you’re buying new property in Andalucía, along with the 10% of VAT, you’re also obliged to pay the Documented Legal Acts tax which is 1.5% of the selling price.

Again, in case of VPO property or if the selling price is above 130.000€ or the buyer is less than 35 years old, 0.3% is applied instead of 1.5%.

So generally, a new house is liquidated to the Treasury at 11.5% of the agreed price.

 

LAWYER’S SERVICE

Usually, the lawyer’s contribution for managing the process makes 1% of the selling price. However, the numbers may vary.

PROPERTY REGISTRATION AND NOTARY FEES

The approximate costs for the property registry and notary fees are around 1% of the selling price of the property. However, the numbers may vary due to the complexity of the entire process and, of course, the property price.

In case of a mortgage, we must also add the expenses of the mortgage to the selling costs.

If you have more questions, Home and Help can recommend a qualified tax advisor who will provide you with all the necessary information.





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