Buying Real Estate

Taxes on buying and maintenance of a property in Spain [2022]

Tax on buying property in Spain. Taxes on the purchase and maintenance of a property in Spain [2022]. Taxes on buying property in Spain. Property in Spain.

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In Spain there are two types of costs and taxes:
1. Costs and taxes for the PURCHASE of real estate.
2. Costs and taxes for the MAINTENANCE of the property.

COSTS AND TAXES FOR THE PURCHASE OF REAL ESTATE
There are 6 main types of costs:

№1: VAT (the Value Added Tax).
In Spain this tax represent 10% of the value of the property.

№2: AJD (Stamp Duty)
This is a mandatory tax on the purchase of a new property. Basically, it depends on whether you are a resident in Spain or not. For non-residents, the amount of this tax is 1.5% of the value of the property, for the residents it’s 0.1%.

№3: Lawyer services.
The list of lawyer services includes the following:
open a bank account;
obtain the NIE number, that is the foreigner’s tax number;
check all the documents of the chosen property;
prepare all the papers for signing the final purchase agreement – the deeds;
register the property and the new owner in all necessary instances.
Up to 1000 €.

№4: Notary services.
Up to 500 €.

№5: Registration fee.
Up to 500 €.

№6: Water and electricity connection.
About 300 €.

EXAMPLE:
Let’s take villa price: 200.000 €.
200.000€ + 20.000€ (10% VAT)= 220.000€
220.000€ + 3.000€ (1,5% Stamp Duty) = 223.000€
223.000€ + 1.000€ (Lawyer) = 224.000€
224.000€ + 500€ (Notary) + 500€ (registration fee) = 225.000€
225.000€ + 300€ (water, electricity) = 225.300€

For a house that is worth 200.000 €, when we add all the purchase taxes and costs, we have the final price of 225.300€. That is to say, we added another 12.6% to the value of our property.

200.000€ + 12,6% (225.300€) = 225.300€

TAXES AND COSTS FOR THE MAINTENANCE OF REAL ESTATE

In general, they can be divided into 4 categories.

№1: IBI Council tax.
Alias – the annual property tax. A villa of the type that we have chosen costs around 500€ per year.

№2: Community Fees.
These fees are paid for the maintenance of a residential complex if it has common pools, gardens, etc. In our particular case, there is no community, because we are talking about a detached villa. But, in general, the average cost of this kind of fees is 60-70 euros per month.

№3: Garbage collection fee.
Up to 120 € / year.

№4: Utility bills
The payments for water and electricity. They depend on your consumption (the average cost for water is 140 € per quarter, and for electricity – 60-70 € per month).
So, the monthly maintenance of your villa, considering all the fees, will cost you 200-220 €.

00:00 – Hello

00:28 – Taxes for the PURCHASE of real estate.
00:40 – VAT (the Value Added Tax).
00:49 – AJD (Stamp Duty)
01:12 – Lawyer services.
01:42 – Notary
01:48 – Registration Fee
01:52 – Water and electricity
02:08 – EXAMPLE

04:07 – Taxes for the MAINTENANCE of the property
04:23 – IBI Council tax
04:34 – Community Fees.
04:56 – Garbage collection fee
05:03 – Utility bills
05:30 – Contact with WTG Spain

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