Are you considering buying property in the Costa Brava? Then keep in mind the transaction costs. Therefore, this article will discuss property purchase costs in Catalonia.
You buy a property in resale
Basically, when you buy a property in resale, you pay registration fees (Impuesto sobre transmisiones patrimoniales or ITP). Spain's autonomous regions can fill in this tax themselves.
The general rate in Catalonia is 10%. However, there are exceptions. For example, the rate is 5% for young people under 33 with limited income, large families and people with disabilities. The condition is that they move their domicile to the residence.
In addition, there is a rate of 7% for heritage properties. For property with acquisition value higher than €1,000,000, the rate is 11%.
Read more about the practical side of the buying process.
You buy new construction
If you buy new construction, you do not pay registration fees. In that case, VAT will apply. Unlike registration fees, VAT is regulated at the national level. For residential properties, the VAT is 10%.
In addition to VAT, there is also a stamp duty (Actos jurídicos documentados or AJD). Stamp duty, in turn, is regulated by the autonomous regions. In Catalonia, the stamp duty is 1.5% on top of the purchase price.
Read more about the buying process in new construction.
Notary and registration fees
The notary fees depend on the purchase price and range between 1,200 and 1,800 euros. You will also pay for the registration of your titles in the property register and the land register. This will cost around 400 to 600 euros, again depending on the purchase price.
It is important to know that the notary in Spain does not represent your interests. You are responsible for the legal checks on the property yourself.
Read more about the duties of the Spanish notary.
Legal support
Since the notary in Spain does not conduct investigations, it is important that you seek the assistance of legal counsel. Issues often include building violations, debts, bank guarantees, etc. These checks are best done before you sign the compromise. That way, you will avoid any surprises. The cost of counselling is usually 1% of the purchase price + VAT.
Read more about buying safely in Spain.
Other costs
Finally, there are some minor costs. Consider, for example, transferring utilities, applying for NIE numbers and any bank charges.
Decision
Buying property in the Costa Brava involves around 12 to 13% of costs on top of the purchase price when reselling. For new builds, you can then add around 14 to 15% of the purchase price.
