Expenses subject to a sale

The costs associated with buying and selling a property may vary depending on whether it is a new-build home or a second-hand home. Below are the most common expenses for each case:

🏗️ Expenses for Purchasing a New-Build Property

• VAT (Value Added Tax):
  - When purchasing a new-build property, the buyer must pay VAT at 21% on the purchase price.
  - Exception: If the property is intended for rental and meets certain requirements, VAT may be reduced to 10%.
• Stamp Duty (AJD – Actos Jurídicos Documentados):
  - This tax applies to the formalization of the purchase through a public deed and typically ranges between 0.5% and 1.5%, depending on the autonomous community.
• Notary fees:
  - Notary fees for formalizing the purchase deed (variable depending on the price and complexity of the document).
• Property registration fees:
  - Once the property is purchased, it must be registered with the Land Registry, with a variable cost ranging from 1% to 2% of the purchase price.
• Administration fees (optional):
  - If you hire an agency to handle paperwork, additional fees will apply.
• Insurance registration (in some cases):
  - Some developers may require insurance to cover possible defects in the property.

🏡 Expenses for Purchasing a Second-Hand Property

• Transfer Tax (ITP – Impuesto de Transmisiones Patrimoniales):
  - When buying a second-hand property, the buyer must pay ITP, which generally ranges between 6% and 10% of the purchase price, depending on the autonomous community.
  - Some regions offer reductions or exemptions, for example, for large families or lower-priced properties.
• Stamp Duty (AJD):
  - This tax also applies but is usually lower for second-hand properties compared to new-builds.
• Notary fees:
  - As in the case of new-build properties, the buyer must cover notary fees for formalizing the public deed.
• Property registration fees:
  - Registering the property with the Land Registry is mandatory, with variable costs.
• Administration fees (optional):
  - If an agency is hired to handle the transaction and other paperwork, additional costs will be incurred.
• Energy efficiency certificate:
  - This certificate is mandatory for all property transactions and can cost between €100 and €300.
• Mortgage-related expenses (if applicable):
  - Includes costs such as property valuation, mortgage stamp duty (AJD), notary fees, and land registry fees.

📊 Summary of Costs

📌 It is important to note that the rates for ITP and AJD may vary depending on the autonomous community. It is always advisable to consult a notary, an administration office, or a real estate expert for updated and location-specific information.