| |
| Articles |
The costs involved in the purchase of a property (April 2008)
|
| |
The purchase of a flat involves a series of necessary administrative procedures that represent an additional cost over and above that of the property itself. The largest of these costs are those of the title deed, registration, notary and taxation, which mainly depend on the price of the property in question.
|
| |
In general terms, if the property is not already mortgaged, the costs are:
|
| |
a) Taxation. If it is a second hand property, you will have to pay the "Impuesto de Transmisiones Patrimoniales" [Property Transfer Tax], which varies between 4%, 6% and 7% of the price of the flat depending on the area in which the property is located. If it is a newly-built property, the buyer will have to pay the 7% "IVA" [VAT].
|
| |
| b) Notary. Using a Notary Public for the signing of the public title deed is an obligatory requirement. Notary fees are regulated, although the final cost will depe nd on the price of the property. |
| |
c) Property Registration. Upon formalisation of the title deed, the property must be recorded in the "Registro de la Propiedad" [Properties Register], a public body that is responsible for recording all the properties in the country and which you should first consult regarding whether the property has any additional encumbrances. The costs in this case are those arising from the recording of sales contracts and mortgages.
|
| |
| d) Documented Legal Acts. Only in the case of newly built properties. In order to calculate the cost, the region in which the property is located and the price of the deed must be taken into account. In the provinces of Almeria, Alicante and Murcia, the tax is always 1% of the value of the deed. |
| |
| All the above costs must be paid on the day the public deed is signed. |
| |
| Fuster & Associates, experts solicitors in Spain, will provide you with detailed information on the costs you will need to pay wh en you purchase your property. Leave these costs in the hands of our Administration Department. |
