In general, the costs of purchase are paid for by the buyer of the property with the exception of the real estate agent fees, which are typically paid by the seller.
In most cases these costs are in the region of 10-14% of the purchase value depending on the type of property, location and other factors such as lawyer fees.
1. Value Added Tax (IVA) for commercial and new residential property
- When buying commercial real estate and land is – 21%,
- with the purchase of a new residential property – 10%.
2. Property transfer tax (ITP).Payable on the acquisition of second hand real estate at the rate of 8-10% depending on the value of the property.
- 8% for properties with a purchase price of less than €400,000
- 9% for properties with a purchase price of between €400,000 and €700,000
- 10% for properties with a purchase price of above €700,000
3. Stamp duties (AJD). The rate of 1% -1.2%.
4. Notary fees
- Notary fees for property purchase vary depending the complexity of the transaction and typically range from €500 to €2000
5. Legal fees
- Use of a lawyer is highly recommended for all property purchases and the fees usually range between 1-1.5% of the value of the property
Note that these fees are to give the reader an idea of the costs to be expected on top of the purchase price of the real estate. We always recommended to utilise a local lawyer specialised in real estate transactions and we would be happy to recommend several in Marbella who will be able to clarify the actual costs for the property you wish to purchase.