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05-Jan-2018 16:21

Notary fees (Buyer) These are the costs for drawing up the deeds in Spain called the "Escritura".

In general, Spanish law states that these costs should be distributed by the signing parties, meaning that the sellers should take care of the original costs of the deeds "escritura" and the buyer for the copies.

When buying a Spanish property there are both costs for the buyer and seller.

However, there are uncertainties as to which costs belong to the buyer and which to the seller.

Property transfer tax (Buyer) When buying a second-hand property, the buyer has to pay property transfer tax.

For newly built properties, the buyer pays instead VAT or IVA of 10%.

The invoice for this certificate can also be deducted from the capital gains tax.

There are exceptions when the seller does not have to pay capital gains tax and that is when the sellers of the property are older than 65 and have lived there officially for at least the last 3 years.

Sellers need to take that into account when advertising their property exclusively through an estate agent.

Capital gains tax for 2017 (Seller) 19% for the first 6.000 euros 21% from 6.000 and 50.000 euros 23% from 50.000 onwards As an example if the seller bought a house in 2003 for 200.000 euros and in 2017 he sells it for 350.000 euros, he will have to pay capital gains over 150.000 euros in this way: (350.000 - 200.000 = 150.000).

Sellers can advertise their property through several estate agents.

Nevertheless, some estate agents will want to offer the seller to sell it exclusively through them by agreeing to take a smaller commission fee.

The property transfer tax is a tax that varies from region to region In Valencia, Catalonia, and Galicia region, the property transfer tax is 10%.



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