The Fees: There are two fees when purchasing a property in Spain
1) Notary fees: They vary depending on the value of the property and various other factors.
2) Land Registry Fees: These vary according the locality, type and value of the property. They are not strictly taxes but rather administrative fees.
The Taxes:
1) IMPUESTO SOBRE TRANSMISIONES PATRIMONIALES (ITP): Transfer tax payable when you purchase either: land, house, apartment or a building plot
from a private owner. Depending upon "Local Parliament" (Comunidad Autónoma) it can be 6% or 7% of the declared value of the property as
expressed in the "Escritura de Compraventa" (Deed of conveyance).
2) IMPUESTO SOBRE EL VALOR AÑADIDO (I.V.A.): This is the Spanish equivalent of VAT. It is paid instead of I.T.P. when you buy from a Developer
rather than the private individual. It is charged at the rate of 7% on the construction of a house and any associated buildings. It is also charged at the
rate of 7% on both the plot and the house if you purchase both at the same time.
3) AJD (Stamp Duty): In addition to IVA you will also have to pay a document tax or stamp duty which can be up to 1% of the purchase price.
4) Plusvalía: It is due to the increase of the legal value of properties. Normally
payable by the vendor but it may be stipulated that the buyer pays. Who pays this will be discussed in the negotiations and in consultation with your Lawyer.
5) Capital Gains Tax (Impuesto sobre la renta de no residentes): Only when the vendors are also Non-Residents, there is a tax applied which consist of the
retention of 3% of the property sales price. This tax is normally payable by the
vendor.
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