WHAT ARE THE COSTS WHEN PURCHASING A PROPERTY IN LA COSTA DEL SOL?
· 2 min. read
If you are going to buy a property in The Costa del Sol, it is likely that you will have doubts about the costs and taxes that will be involved in buying it, apart from the cost of the property itself.
The costs of the purchase can be summarised as follows
Notary fees
These costs or also called “duties” are regulated by the state and depend on the price of the property.
Land registry
This is the price to be paid for registering the deeds that have been signed by the notary. This cost is also fixed by regulations and depends on the price of the property.
The notary and land registry fees are usually 2% of the value of the property. However, this percentage may vary depending on the notary’s office
Taxes linked to the purchase
There are also taxes to be paid which again depend on the price of the property.
If it is a new property, you will have to pay 10% (21% if it is for commercial use). In addition, there is the IAJD (Actos Jurídicos Documentados) which in Andalucía is 1.2%.
If it is a resale property you will have to pay ITP (Impuesto sobre las Transmisiones Patrimoniales) which in Andalusia is around 7% + 1,2% IAJD (Actos Jurídicos Documentados).
Lawyer
It will be around 1% + VAT of the value of the property and will be the person in charge of formalising the documents for the land registry and the notary.
If the client is going to apply for a mortgage for the purchase of the property, we would have to add the following costs:
- Valuation of the property
- Arrangement fee
- IAJD (Impuesto de Actos Jurídicos Documentados)
- Notary’s office
- Land Registry
- Lawyer
In case of applying for a mortgage you must bear in mind that this will not be the only major expense involved in buying a property. There are several expenses and taxes that must be paid to formalise the purchase of a property.
Remember to read one of our last post about the reference value.