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FEES AND TAXES

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There are fees and taxes, as shown below, associated with property transfers. The usual guide is to allow an additional 8%-10% of the purchase price to cover them.

1. Transfer Tax.
5% (I.G.I.C.) of the official(declared) value, when your buy a new property.
or 6% (Derechos Reales) when you buy a resale property from a private owner.

2. Document Tax.
0.5% of the official value

3. Plus Valia Tax.
The Plus Valia Tax is a type of capital gains tax, based on the increase in value of the land and not the increase in value of the property. It is strictly speaking, a tax payable by the seller, but in practice the purchaser is asked to pay all fees and taxes due on transfer of property. It is calculated at various rates on the annual increases in the value of the land since the previous sale.

4. Land registry fees.
This fee is about 0.5% of the declared value.

5. Notary Fees.
This fee is about 0.75% of the declared value.

6. Lawyers fee.
Depending on the time and work involved a fee of up to 1% of the purchase price may be requested.

7. Tax Retention.
Here the buyer acts as a tax collector for the Spanish Inland Revenue!. The buyer must retain 5% of the declared purchase price of the property from the seller and pay this money to the Spanish Inland Revenue within 30 days of signing the Title
Deeds.

This tax is payable when the seller is a non resident of Spain and it is the responsibility of the buyer to ensure that it is paid to the Spanish Inland Revenue. It ensures that any taxes owed by the seller are paid, even if he leaves the country after completion of the sale. If the seller is a resident of Spain, then there is no requirement to retain the 5% as it will be included in his tax returns.

Disclaimer:Casa Quest has made every effort to ensure that all the information provided is accurate. However, it is not intended to be a substitute for professional or legal advice. Regulations and laws do change and therefore Casa Quest cannot accept responsibility for any loss or damage caused by any actions, taken or not taken, as a result of using the Casa Quest website or acting on the information contained within.