Buying Property in Spain
What Fees and Taxes Must I Pay?

What Does it Cost to Buy Spanish Property?

The average legal costs, including fees and taxes, are about 10% of the purchase price. This may vary depending on your lawyer's charges, the notary fees and the level of the "Plus Valia" (similar to capital gains tax charged on the increase in the value of the property since it was last sold).

Using an estate agent will be your biggest extra cost!

Estate Agent's commission fees can run into thousands of pounds, depending on the purchase price. Average commissions are around 6% but many agents charge 10% or more - and may have also raised the price far higher than the owner's actual asking price!

Properties Direct (Spain) only charge a maximum of 1.5% commission, so can save you thousands of pounds. Register with us by completing the form at the bottom of this page.

Legal Costs

Lawyers' fees are generally between 0.6% and 1% of the sale price of the property plus the costs of any official documentation. We recommend you use only a lawyer with a reputable Spanish practice or a firm based in your home country with a good reputation and experience in the Spanish property market.

Fees and Taxes

There are two fees and two taxes which must be paid on the transfer of a property.

The fees are for the notarisation of the deeds and for their registration. Spanish law requires that the notary fees should be split between the purchaser and the vendor, and the registry fees should be paid by the purchaser. In practice the purchaser usually pays all of the costs arising from the transfer.

The two taxes are dependent on who is selling the property. If the vendor is a company, VAT of 7% is levied on the declared price plus a half percent stamp duty. If a company sells the land only, VAT increases to 16%. On private sales a tax called Patrimonial Transfer is levied, generally 6%. By law this must be paid by the purchaser.

The second tax is the Plus Valia. New properties are usually sold free of Plus Valia. It's common to under-declare the property's value to lower the amount of Plus Valia. However, the tax authorities are clamping down on what has previously been an acceptable tax dodge - so take advice.

Local town halls can charge a tax on the increase of the value of the land since the previous sale. This is based on calculations and values determined by the town halls and can vary between zero and two thousand euros. Some town halls levy this tax, but some do not. By law, this tax is the vendor's responsibility, though frequently sales contracts require that the purchaser pays it.