Real Estate – The main expenses when buying a property in Spain

When you buy a property in Spain, there are some expenses to be paid. It does not matter if you are an individual or a company, they are exactly the same.

The main expense is the tax. If you buy a second hand property, you will have to pay the transfer tax and its amount will depend on the region of Spain you are going to buy the property. For instance, in Catalonia it is a 10%, but in the South of Spain it is around 6-7%.

If instead of buying a second hand property, you are buying a new built property, then you have to pay the VAT, which is a 10% independently of the area of Spain plus 1.5% for the Stamp Duty.

These are the main expenses. However, a part from these points, you have to pay for the notary fees, registry fees, legal fees and, what we call, miscellaneous (i.e. the tax for applying the NIE number that you will need for the purchase, translations and bank commissions).

You can watch all the explanation from Lourdes Santisteban (partner of AvaLaw Legal Services) in the video below:

If you have questions regarding the purchase process in Spain, our Real Estate Department will be happy to help you. Here is our Real Estate guide which it has helped to many of our clients.

If you want to find out when you need to pay taxes in Spain, read our previous post about paying taxes in Spain.