Trading costs
Standard purchase costs in Spain - explained
As you may know from Denmark, there are a number of costs associated with buying real estate. Trading costs are slightly higher in Spain than in Denmark, and you should remember to add this to the price of the house.
Roughly speaking, you should expect an additional 11-13% to the price, depending on the home. We therefore expect 12% in our price estimate for the homes. Never hesitate to contact us if you have any further questions.
Book a meeting with us.
Taxes for buying a home range from 8 to 10% of the purchase price of the home. This is a tax to the state, a “transfer tax” or in Spanish “Impuesto de Transferencia de Propiedad”. Of the first 400,000 euros, 8% is paid, of the next 300,000 euros, 9% is paid and 10% of the price exceeding 700,000€.
If you buy a project sale, you do not pay tax, but rather a so-called IVA of 10%. IVA stands for Impuesto Sobre El Valor Añadido and is what is called VAT in Denmark. In addition to this, an additional 1.5% is paid in stamp duty on project sales.
Although it is not unusual for this expense to become a point of negotiation between seller and buyer, it is most often the buyer who bears this cost.
At the time of purchase it is only possible to estimate what these costs will amount to, but it would be quite correct to estimate them at approximately 0.45 % of the purchase price.
Again, this is an expense that is usually covered by the buyer, but it is not legally stipulated. This expense can also only be given as an estimate, only when the deed has been presented to the relevant land registry office will you get an exact amount. However, an addition of 0.5 % of the purchase price should be enough to cover the expense.
Although it is not a requirement to use a lawyer when buying property in Spain, Villa no. 8 will always make use of legal assistance in Mallorca.
Lawyers' fees vary from firm to firm, some require a percentage of the sales price (1-1.5 %) and others charge a flat rate, which typically starts from around 900 euros for a single service.
Our lawyer takes approximately 1% of the purchase price.
Additional services may well be charged extra, but of course we always get an overview for you before we get started.
In Spain, a home is sold as visited, which means that the buyer has a duty to investigate. In Spain, a condition report is not prepared, and no transfer of ownership insurance is taken out. Therefore, in addition to the purely legal part, we investigate the physical part. That is, especially with houses, we see that more square meters have been attributed than what is legal, which is quite normal - but of course something you should be aware of when buying. It is of course advisable to find out whether this is the case and if so, which areas it applies to, what the situation is like, whether there are solutions or not, or whether you could be affected by this in the future, all of which are something an architect can answer.
Prices vary depending on the size of the plot but are approximately 500-1500 euros. The final price will be stated when choosing the property.
