What are the taxes and Expenses for purchasing a home in Spain?

Purchasing property in Spain is a dream for many, especially in such coveted locations as the Costa del Sol. However, it is crucial to understand the additional costs involved in the purchasing process. With the guidance of Unikk Home, leader in the luxury real estate market on the Costa del Sol, this path is simplified, allowing you to enjoy the experience without setbacks.

1. Property Transfer Tax (ITP)-For second-hand properties: This tax varies according to the autonomous community, in Costa del Sol Andalucía

General Rate: 7% of the value of the property.

Reduced Rates:

  • For habitual residences with a value of up to 150,000 euros: The tax is reduced to 6%. This rate applies when the property purchased will be used as the buyer’s main home.
  • For specific buyers of homes up to 150,000 euros: If the property is to be used as a primary residence and the buyer is under 35 years of age, has been a victim of domestic violence or terrorism, or the property is located in an area with depopulation problems. , the tax is reduced to 3.5%.
  • For habitual homes of people with disabilities or large families, with a value of up to 250,000 euros: If the buyer has a recognized disability equal to or greater than 33%, or is part of a large family, and the property will be their main home, the type applicable is also 3.5%.
  • For the acquisition of homes intended for resale by businessmen: If the purchase is made by a natural or legal person who carries out a business activity in the real estate sector and complies with the specific regulations of the sector, the tax rate is established at a 2%.

2. VAT (Value Added Tax) For new properties:

The applicable VAT is 10% of the purchase price. In the case of land or commercial properties, the tax increases to 21%.

3. Notary Expenses

The fee is calculated based on the value of the real estate transaction, following a progressive scale: the higher the sale price of the property, the higher the notarial cost will be, although the increase is not proportional, but rather follows a series of established sections. by the law.

4. Property Registration

Registering the property is a necessary step to secure your rights as an owner. Costs vary but usually represent a small fraction of the property’s value.

5. Management Expenses

Although not mandatory, the services of a management company can significantly simplify the purchasing process, especially for international buyers. These expenses vary according to the level of service required.

6. Annual Property Tax (IBI)

This is a municipal tax paid annually, based on the cadastral value of the property. It varies significantly depending on the location and size of the property.

7. Other Recurring Expenses

These include community charges, insurance, maintenance, and possibly, charges for services such as water, electricity, and gas.

The Advice of Unikk Home

With Unikk Home, you not only find the property of your dreams on the Costa del Sol but also receive expert advice on all aspects of the purchasing process, including taxes and associated expenses. Their team of experts guides you through each step, ensuring that your investment is transparent and hassle-free.

Amber Jacobs Office Manager
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