Buying Costs & Taxes
Transparency is key. Before falling in love with a property, you must understand the total acquisition costs, which typically add 10-12% to the purchase price.
In Spain, the tax you pay depends on whether the property is brand new or a resale. As an independent guide, Zembelo ensures you have a 360-degree view of these mandatory expenses before you commit.
Transfer Tax (ITP) vs. VAT (IVA)
For resale properties, you pay a Transfer Tax (ITP) of 7%. For brand-new properties (directly from a developer), you pay 10% VAT (IVA) plus 1.2% Stamp Duty (AJD). This is a significant difference that must be factored into your opening budget.
Professional Fees
Expect to pay roughly 1% (plus VAT) for an independent lawyer and approximately €1,500 - €3,000 for notary and registry fees. If you are taking a mortgage, there will be additional bank valuation and arrangement fees.
Avoiding 'hidden' costs like the Plusvalía tax (which should be paid by the seller but is sometimes negotiated) is vital for your financial benefit. You can also review our guide on NIE and banking to ensure your funds are ready for transfer.
What usually happens
- You calculate the specific tax rate (7% or 10%+) for your target property type.
- You factor in the 1% legal fee for mandatory independent representation.
- You set aside a provision for notary and property registry expenses.
Prepare
- Preliminary cost breakdown
- Mortgage simulation (if applicable)
Risks
- Not accounting for the 3% difference between resale and new-build tax.
- Forgetting that VAT on new-builds must be paid upfront, not mortgage-financed.