When buying or transferring ownership of property in Spain, there are several taxes and fees that buyers need to consider.
Property Transfer Tax (ITP)
This tax applies to the purchase of used properties. The ITP rate varies depending on the autonomous community where the property is located. For example:
Andalusia: 7%
Madrid: 6%
Catalonia: 10-11%
Andalusia: 7% for properties under €150,000; 8% for properties between €150,000 and €300,000; 9% for properties between €300,000 and €500,000; 10% for properties over €500,000.
Valencian Community: 10%
Basque Country: 4%
Canary Islands: 6.5%
Galicia: 10%
Balearic Islands: 8% to 11% (progressive rate based on the property value)
Aragon: 8%
Asturias: 8% to 10% (progressive rate based on the property value)
Cantabria: 10%
Castilla-La Mancha: 9%
Castilla y León: 8%
Extremadura: 9%
La Rioja: 7%
Murcia: 8%
Navarre: 6%
Ceuta and Melilla: 6%
Furthermore, there are possible reductions depending on the situation, such as for large families or young buyers (Asesoría Orihuela Costa).
Value Added Tax (VAT)
For new properties, VAT must be paid instead of ITP. The general rate is 10% of the purchase value (Asesoría Orihuela Costa).
Tax on Documented Legal Acts (AJD)
This tax applies to both new and used properties, when the purchase is registered with a notary. AJD fees also vary depending on the autonomous community:
Madrid: 0.75%
Andalusia: 1.20%
Catalonia: 1.50% (Asesoría Orihuela Costa).
Additional Costs
In addition to taxes, there are other costs associated with purchasing property in Spain:
Notary fees: Between 600 and 875 euros, depending on the value of the property.
Property Registration: From 600 to 1,000 euros, depending on the location and characteristics of the property.
Valuation: Around 300 euros, if you are requesting financing.
These are the main taxes and costs involved in purchasing or transferring property in Spain. For more detailed information, it is always recommended to consult a real estate lawyer or a specialized manager.