WHAT ARE THE PURCHASE OR SELLING COSTS IN SPAIN?

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The prices and examples hereunder are valid for the Spanish region of Andalusia, i.e. the provinces of Malaga, Seville, Cordoba, Granada, Jaen, Huelva and Almeria. Since data may change, please check for our latest update.These are the costs for the BUYER.If you are buying a new property, i.e. you are the first owner: 10% VAT + 1.5% stamp duty (actos jurídicos documentados or AJD)If you are buying a resale property, i.e. from an existing owner: property transfer tax (impuesto de transferencia patrimonial or ITP) which varies from 8-10%;if the selling price is under €400K = 8%if the selling price is between €400K and €700K = 9%any price above = 10%if you are buying land on which you will build a property, normal Spanish VAT applies: 21%There are other general costs which are usually paid by the BUYER:notary costs: around 1% + VATland registry costs: around 1%; land registry is NOT mandatory in Spain; however at BlancaReal we strongly recommend doing the proper registration to avoid complications later.legal fees: calling for an attorney to help you at each step is NOT mandatory; however, at BlancaReal, we take over all administration steps, payments and legal requirements; the cost is 2% + VAT of the selling price with a minimum of €2,500 and a maximum of €9,800.For example, Mr and Mrs G. just bought a 3-bedroom resale apartment overlooking the sea in Benalmadena for €275,000. To the selling price, they had to add:8% ITP = €22,000notary costs = €680land registry = €450BlancaReal fees = €6,655In the end, the total cost of the property was €304,785, i.e. 9,8% above purchase price.These are the costs for the VENDOR.Usually, the vendor has to pay for:The real estate commission, which is always included in the selling price.Capital gains tax (Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana or Plusvalía or IIVTNU) i.e. the tax paid on the profit of the house.The latter is a calculation established by each town hall; therefore, we recommend using an official calculation website; in the province of Malaga, for example, it would be https://portalweb.prpmalaga.es/opencms/opencms/prpweb/servicios/estimacionIIVTNU/ or just Google “calculo plusvalia” and the city you reside in.See examples here https://luxurypropertymalaga.com/what-are-the-purchase-or-selling-costs-in-spain/

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