What expenses will you incur when buying a property in Spain?
There will be a bit more than 10% in costs on top of the price the buyer has to pay. Take this into account when setting your budget.
The price stated on the property is not what it will cost you. If you’re buying a second-hand property, expect to pay just over 10% of the cost on top. If it’s a brand new property, it will cost you a little more.
ITP
Property Transfer Tax. For the transfer of used homes, the tax is 10%.
IVA
If you buy a brand new home, the government will charge 10% VAT (IVA) on the purchase.
AJD
Impuesto de Actos Juridicos Documentados. This is a document duty paid on transactions subject to VAT, such as new homes. The duty is 1.5%.
Notary fees and property registration fees
The fee varies depending on the price of the property you are purchasing.
What expenses will I incur as a homeowner?
IBI
This is an annual municipal property tax. Rates vary between municipalities.
Home insurance
Don’t focus solely on the prize. Having an agent you can talk to is invaluable and can make a big difference when something happens.
Tax for non-residents
If you own a property in Spain, you are required to submit a tax return for non-residents. One tax return must be submitted per owner and per property – every year. The deadline for submitting the tax return is 31 December of the year following the tax year. You will not receive a bill or notification that it must be paid. It is your responsibility to follow up and ensure that this is done.
And, of course, ongoing expenses for electricity, water, possibly gas and internet.
