Completion and costs of the sale

In Spain the change remembers contracts by means of a pre-contract (called contract of arras), which is signed by both parts, the salesman and the buyer. It corresponds approximately to 10% of the total price, often made by Agency Inmobiliaria.El 90% rest is made when notarizing. The sale is considered finalized when the writing is signed before a Spanish Notary, the made payment been suitable by the property and the possession of the same one given to the buyer.

 

Costs of Property:

Buyer is liable for transfer tax 7% or VAT, plus registration or name change, and notary fees, which is priced on a scale making the total additional costs around 10%. This is for any villa, apartment, garage, etc…

For Commercial premises or plots of land there is a 16% VAT and stamp duty of around 1%.

The seller usually pays the Plus Valia or capital gains tax and depends upon how long the seller has owned the property. It is calculated on the basis of the “valor catastral” property administrative value, which is usually lower than market value.  

Annual costs:

•  Annual real estate ax or IBI

•  Community charges in a community development.

•  Wealth tax is on value of property income tax based on income from the property.