Besides the selling price you have to take into account some extra costs that are involved when buying a Spanish property. First of all there are two types of taxes to be paid:

1) The VAT tax (I.V.A) is charged when buying new built Spanish property, the current rate is 7% to be added to the purchase price.

2) When buying resale property in Spain the tax charged is then called Property Transfer Tax (Impuesto de Transmisiones Patrimoniales). , which at present is also 7% of the sales price.

Besides this two fees you will also find mandatory to pay for the ownership registration and Notary fee which will ad up arround another 0,5% on the sales price.

If you are going to get a bank loan when buying your new property, you will have to take into account the fees involved when obtaining it. In total you should allow an extra 2,5% or 3% to be calculated from the mount borrowed. The cost are split as follows.

1) The bank will charge you between 0,5% to 1,5% for the mortgage setting cost.

2) A tax named “Impuesto Sobre Acton Jurídicos Documentados” is to be paid for the mortgage and represents another 0,5% of the amount borrowed.

3) Legal fees for the notary and the registration of the mortgage at the Land Registry do also have to be taken into account these will ad up another 0,5% on the mortgage.