Financing & Purchase Costs

Spain is no differnet to other countries, when it comes to costs, taxes and fees!

There´s no rose without a thorn….

For Residential Properties:
The spanish equivelant of Stamp Duty is called ITP (Impuesto sobre Transmisiones Patrimoniales). Unlike the UK, ITP is payable on all purchases regardless of the price paid, as follows:

Up to 400,000.00 €          8%, to 600,000.00 €         9%, to 1,000,000.00€      10%, over 1,000,000.00€              11%

For Land or Commercial Property:
Land & commercial properties are always sold plus IVA (the Spanish equiveleant of VAT) which is 21%.

Legal Fees & Searches:
As a rough guide, the cost of legal fees and searches is between 2 and 3% of the purchase price of the house.

Mortgages:
It is possible, as a non resident, to get a mortgage in Spain, however banks in Spain will not normally finance more than 60% of the purchase price, so you will need a deposit equivelant to 40% of the agreed purchase price, plus the fees outlined above.