INFO
If you are planning to buy a property in Spain, it is important to find out as accurately as possible what costs will be incurred during the purchase of a property before choosing.
This information specifically presents the costs of buying a property in Andalusia.
Selling price of the property
The advertised prices of the properties do not include taxes and other costs.
Taxes and Costs in Andalusia When Buying a Property
- Cost of Obtaining a NIE Number
- ITP (Impuesto de Transmisión Patrimonial)
- IVA (Impuesto de Valor Añadido)
- AJD (Impuesto de Actos Jurídicos Documentados)
- Notary fees
- Land registry registration (Registro de la Propiedad)
- Gestoría
- Representation by a lawyer
1. Cost of getting a NIE number
Having a NIE number (Numero de Identidad de Extranjeros), i.e. a unique identification number obtained during the Spanish immigration registration, is a prerequisite for starting the process of buying a property in Spain.
If you want to make the NIE administration easy and entrust the administration to a local expert, you can expect a cost of around 160 – 200 EURO. It is not absolutely necessary to travel abroad for administration.
2. ITP (Impuesto de Transmisión Patrimonial)
If you decide to buy a second-hand house or apartment, you will have to pay the real estate transfer tax, i.e. ITP. This tax is only applicable to second-hand properties and its amount is determined by the Spanish Autonomous Communities.
Rate of ITP payable in Andalusia (e.g. Costa del Sol, Costa Tropical, Costa de la Luz):
As of 28.04.2021, the ITP rate in Andalusia has been reduced to a preferential general 7% due to the Coronavirus in order to recover and boost the economy.
3. IVA, i.e. value added tax (VAT)
IVA is only payable when buying a newly built property or if the seller is not a private person.
The rate is 10%, however, it is important that in such cases there is no ITP payment obligation.
4. AJD (Impuesto de Actos Jurídicos Documentados)
The AJD is a tax charged by the administration at the time of purchase of real estate, which is currently collected by the autonomous communities. The amount of AJD ranges from 0.5% to 1.5% of the price of the property.
In Andalusia, the AJD tax is currently reduced by 1.2% as of 28.04.2021. (Previously it was 1.5%)
5. Notary fees
In any transaction involving the purchase of real estate in Spain, the authentic deed of sale (Escritura de compraventa) closing the transaction must be signed before a notary. The price of notary services in the case of real estate sales generally ranges between 600 and 1,000 Euros.
6. Land registry registration
Once the public deed of sale has been signed, the deed and the new owner must be registered in the land register (Registro de la propiedad), the cost of which can range from €300 to €2,000, depending on the price of the property purchased.
7. Gestoría
In Spanish sales transactions, it is common for the tasks related to the payment of taxes, land registry entries and notarial payments to be carried out by an external agent (gestoría).
The price of this service varies, usually between 200 and 500 Euros.
8. Representation by a lawyer
Representation by a lawyer in Hungarian is not mandatory for anyone to buy a property, but it is recommended to leave legal support only if the buyer speaks Spanish well, understands the applicable laws, taxes, the process of buying a property and is aware of all negative eventualities and local problems that may arise during or after the purchase of a property in Spain (e.g. possession of an occupancy permit, rental permits, unauthorised reconstructions).
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