Taxes & fees when buying a property
From the initial deposit to the final purchase, this guide explains each step of the process and outlines the various expenses that buyers should expect. It also covers the costs associated with obtaining a mortgage, including valuation and notary fees, and provides an overview of the taxes that buyers are required to pay, such as transfer tax and stamp duty. Whether you are a first-time buyer or a seasoned investor, this guide is an essential resource for anyone looking to purchase a property in Torrevieja.
When buying a property in Torrevieja, Spain, there are various taxes and fees that you will need to pay. These can include:
Transfer tax (Impuesto sobre Transmisiones Patrimoniales or ITP):
This tax is levied on the purchase price of the property and varies depending on the region in Spain. In the Valencia region where Torrevieja is located, the current rate is 10%.
Value Added Tax (IVA):
For newly constructed properties, VAT is applied instead of transfer tax. The current rate of VAT is 10% of the purchase price.
Notary fees:
A notary public must be present at the signing of the deeds of sale, and their fees will vary depending on the value of the property.
Land registry fees:
The property must be registered in the land registry, and fees will be charged based on the value of the property.
Legal fees:
It is recommended to work with a lawyer to guide you through the buying process, and their fees will vary depending on the complexity of the transaction.
Mortgage costs:
If you are taking out a mortgage to finance the purchase, there will be additional costs associated with the mortgage, such as appraisal fees and arrangement fees.
Property transfer tax (Plusvalia):
This is a municipal tax based on the increase in the value of the property since the last transfer of ownership. The amount will depend on the value of the property and the number of years since the last transfer.
It is important to note that the above fees and taxes can vary depending on the specific circumstances of the purchase and the region in which the property is located. It is recommended to work with a qualified lawyer and real estate agent who can provide more detailed information on the costs associated with buying a property in Torrevieja.
