Process and costs of buying a property

Let's make sure you are aware of extra costs. Keep in mind, that after signing of the deed of sale, the buyer must comply with the taxes, which in general terms stands at 11.5% - 13.5% of the price, also depending on if purchasing brand new or second-hand property.

Purchasing new property: 10% of the value as Value Added Tax (VAT), and the Tax on Documented Legal Acts is added, which in the Valencian Community the general rate is 1.5%, lawyer and legal services at around 1%.  

 In the purchase of a (already built) second-hand property, the buyer pays the Impuesto de Transmisiones Patrimoniales (ITP).
Law 11/2021 on measures to prevent and combat tax fraud, published on July 10, 2021, modifies the concept of the tax base of the Impuesto de Transmisiones Patrimoniales (ITP), creating a new concept that is the reference value.
From January 1, 2022, the Impuesto de Transmisiones Patrimoniales (ITP) of real estate will be calculated and settled at its reference value, which will be determined by the General Directorate of the Cadastre and will be informed by the Notary before the sale of the property. or for the declared value of the purchase, which will be +10%, for the settlement of this tax the highest amount will always be used. 

Handy to be also aware of expenses after the purchase of the property.
There are two types: annual expenses and monthly expenses.

Annual:
 - Real Estate Tax (IBI). It is a municipal tax that is levied on real estate in a percentage, variable depending on each City Council, of the property's cadastral value. Before formalizing the purchase of a property, the seller must provide a copy of the last IBI receipt paid.

- Garbage collection rate: It is an annual tax charged by municipalities for the service.

Monthly:
Community Expenses: These are the fees paid to the Community of Owners for the services and maintenance of the common areas when the property is in an urbanization or condominium.

 

Guidance

This section is all about guidance we provide to our clients they may need to purchase a house in Spain
To keep it simple, we will find and guide you to a right direction, to a right person or institution to solve any issues you may have or need to solve.

A foreigner needs to meet a series of requirements before or during the purchase in Spain.

The list of most common procedures we do provide guidance:

  •     Obtaining the foreigner identification number (NIE), necessary for any legal action in Spain. 
  •     Opening a bank account in any Spanish bank. 
  •     Applying for a residence permit or a non-residence certificate. 
  •     Inquiring for a loan. 

If you have any further questions, feel free to contact us.

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