Purchase Costs
It is good to calculate around 10-13 % on top of the sales price to be paid as additional costs of the purchase.
Taxes
Buying a new property
IVA "Impuestos sobre el valor añadido" (VAT)
7% of the amount specified in the Title Deed. If you buy a parking space registered separately, the applicable rate will be 16%.
IAJD "Impuestos sobre actos jurídicos documentados" (Tax on Documented Legal Deeds)
This tax is payable every time a document specifies an amount of money and susceptible of being recorded in the Property Register after having been signed before a Public Notary.
Buying a resale property
ITP "Impuestos sobre transmisiones patrimoniales" (Tax on capital transfers)
The percentage will vary depending on the Autonomous Community where the property you bought is located. Its amount is calculated by applying a percentage to the price established in the Title Deeds, for the most communities 7%, and in some 6%. In the Autonomous Community of Valencia (Alicante) is 7%. This tax is paid by the buyer.
Other costs
Other costs are:
Fees payable to the Notary Public
Registration Officers' fees
Agent fees
Water and electricity contract / change of the nam
Costs paid by the seller
Plusvalía (Capital gains Tax)
This is a local tax based on the increase in value of the urban sites, accumulated during the years the vendor had ownership. It is calculated taking into account the registry value and the number of years elapsed since the previous sale. To this increment, the rate is established by the Municipalities according to legally defined maximum and minimum limits is applied. According to Law, this tax has to be paid by the seller.
