Marbella Property Purchase & Sale Costs
Apart from the actual purchase price of the property, you have to include the transfer costs in the overall purchase budget. Total costs for the purchase of a resale property should be in the region of 10% to 11%. If it is a new property with IVA (VAT) applicable, the total costs should be around 12%. Lawyer´s fees should be added on top of these percentages.
Unless otherwise specified by contract, the buyer and seller pay the following taxes and fees:
Once the purchase of a property has been signed at the Notary Public, the Title Deeds (Escritura) are issued and sent to the Spanish Tax Office. If the property is a resale (i.e. it is not being purchased from the developer for the first time), Transfer Tax will be applicable. If the property is being sold for the first time by the developer, then VAT and Stamp Duty will apply.
Transfer Tax (Impuesto sobre Transmisiones Patrimoniales: ITP) is scaled at between 8% and 10% and is payable by the PURCHASER of second-hand houses, apartments, commercial premises, garages, plots, etc. The Junta (Regional Government) allocates a Fiscal Value to all real estate property, and if the minimum fiscal value is greater than the purchase price, then the tax is calculated using the former. The tax is scaled as follows:
|Up to 400.000€||8%|
|Between 400.000€ and 700.000€||9%|
NOTE REGARDING GARAGES:
A maximum of TWO garages belonging to a dwelling are exempt from Transfer Tax. For all other garages, the tax is scaled as follows:
|Up to 30.000€||8%|
|Between 30.000€ and 50.000€||9%|
The calculation on a property of 1.500.000€ is made as follows:
|Between 400.000€ and 700.000€ = 300.000€||9%||27.000€|
|Between 700.000€ and 1.500.000€ = 800.000€||10%||80.000€|
Where the seller is a DEVELOPER, PROMOTOR or HABITUAL PROPERTY TRADER for new villas or apartments, or garages that belong to dwellings, VAT is set at 10%. Where the seller is a DEVELOPER, PROMOTOR or HABITUAL PROPERTY TRADER for plots of land, commercial premises or commercial garage spaces, VAT is set at 21%. This only covers resale properties if the seller is a DEVELOPER, PROMOTOR or HABITUAL PROPERTY TRADER.
Stamp Duty is set at 1.5% for any villa or apartment, or garage that belongs to a dwelling, as well as plots of land, commercial premises and commercial parking spaces, where the seller is a DEVELOPER, PROMOTOR or HABITUAL PROPERTY TRADER in new properties.
NOTARY & LAND REGISTRY FEES
Amount due for Notary and Land Registry fees will depend on the value of the property and the complexity of the Title Deeds, but one should expect to pay approximately 3,000€
Lawyers will charge approximately 1% of the selling price for conveyancing fees, but this may vary according to the lawyer and the price of the property.
MUNICIPAL ADDED VALUE TAX (Plusvalía)
This tax is based on the index value of the land, which is set by the Town Hall, and is applied on the increase of this value between the prior purchase (i.e. the seller´s purchase) and the current sale, making the length of ownership one of the key variable factors for calculating this tax. For apartments and townhouses this is not usually a large amount but it can be quite significant for villas built on large plots that have not changed hands for a number of years. The amount due can be requested from the Town Hall and your legal representative should do this before going ahead with the sale.
ESTATE AGENCY FEES
These are usually paid by the vendor, or as per the contract agreement between the parties.
The vendor pays his own legal fees.
The vendor is responsible for the payment of any taxes or charges to cancel a mortgage or any other debts on the property. As the property must be sold free of all liens and encumbrances.
This is a general guideline and we strongly recommend you consult with your lawyer with regard to all the possible costs and taxes involved in the transfer of real estate property.