Additional costs when buying a home in Spain: taxes and fees in 2024

Buying a home in Spain is one of the most important decisions in life, but it’s not just about paying the price of the property. There are additional expenses that you need to consider to avoid surprises during the purchasing process. Below, we explain the main costs you will have to assume when buying a property in Spain, from the down payment to taxes, so that you can be fully prepared.

1. The initial payment for the property

Banks typically finance up to 80% of the property’s value through a mortgage, which means you’ll need to have the remaining 20% available for the down payment. This payment is usually divided into two parts: 10% is given when signing the deposit contract, and the other 10% when finalizing the purchase before a notary.

2. Public deed before a notary

To officially own the property, it is essential to sign the public deed before a notary. Generally, it is the buyer who chooses the notary. The cost of this deed is regulated by law and varies depending on the value of the property, ranging between 0.2% and 0.5% of the price of the property.

3. Registration in the Land Registry

Once the deed is signed, it is necessary to register the property in the Land Registry. The cost of this procedure also depends on the price of the property and usually ranges between 0.1% and 0.25% of the property’s value.

Taxes to pay when buying a home in Spain

The type of taxes you will pay when buying a property in Spain varies depending on whether the property is new or second-hand.

• In the case of a second-hand property, you will need to pay the Property Transfer Tax (ITP), which can range between 6% and 10%, depending on the autonomous community.
• On the other hand, if you are purchasing a newly built property, you will need to pay the Value Added Tax (IVA), which is 10%. However, in the case of government-subsidized housing, the VAT is reduced to 4%.

If you are interested in buying a home in Spain, contact VILLAS BLANCA for personalized advice

When buying a home in Spain, you not only need to consider the sale price but also a number of additional costs that make the purchasing process more complex than it may initially seem. That’s why being informed about these costs will help you better plan your budget and avoid unpleasant surprises. If you need personalized advice, at Villas Blanca we offer a no-obligation consulting service to address all your concerns. Additionally, we have a wide range of properties and a specialized team that will provide you with support in legal, tax, and financial management, ensuring that you don’t have to worry about anything during the entire purchasing process. We are here to make your experience of buying a home in Spain as simple and pleasant as possible!

• Email: info@villasblancarealestate.com
• Phone: +34 965 725 547
• Mobile: +34 689 041 306