Sale & purchase expenses

We advise you on the purchase and sale of Real Estate

  1. Purchase and sale of second-hand real estate:
    1. I.T.P (Property Transfer Tax – Impuesto sobre Transmisiones Patrimoniales).
      The I.T.P. is scaled as follows:

      • from 0€ to 400.000€ ————— 8%
      • from 400.000€ to 700.000€ — 9%
      • from 700.000€ ———————- 10%

      In such a way that for the purchase of an asset of €1,000,000, the amount corresponding to the I.T.P. would be:

      • 400.000€ ————————————————- 8% —- 32.000€
      • 400.000€ to 700.000€ —————————- 9% —- 27.000€
      • 1.000.000 – 700.000 € = 300.000 ——— 10% —- 30.000€
      • TOTAL I.T.P = 89.000€

      In case the parking spaces (a maximum of 2 per property) and the storage room are inseparable annexes, the I.T.P. is paid on the total price of the property as shown in the above-mentioned formula.

      In case the parking and/or storage room are not inseparable annexes, the limits will be different and the I.T.P. of such goods will be  calculated as follows:

      • from 0€ to 30.000€ ———— 8%
      • from 30.000€ to 50.000€ — 9%
      • from 50.000€ ——————- 10%
    2. Notary and Land Registry fees
      These expenses will depend on the sale price of the property and the complexity involved in the property deed.
      They are usually set at around €3,000.
    3. Lawyers
      The expense in this item usually ranges between 1% and 2% of the purchase value of the property.
      On the other hand, the seller must pay the Municipal Capital Gains Tax.
      This tax is stipulated by the Town Hall and is calculated according to the time during which the property has belonged to the seller. This tax will only be positive if the seller obtains a capital gain from the sale of the property.
  2. Purchase and sale of a new real estate property:
    In this case, the buyer will have to pay the following expenses:

    1. V.A.T. (Value Added Tax).
      For newly built villas, apartments or garages, the V.A.T. amounts to 10% of the sale value of the property.
      For plots, commercial premises and commercial garages of new construction, the V.A.T. amounts to 21% of the sale value of the property.
    2. Stamp duty (Impuesto sobre Actos Jurídicos Documentados).
      This tax amounts to 1.5% and is applied on the purchase value of the property.

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