TAXES & FEES
Various fees and taxes are payable when you buy a property in Spain, and are around 11% of the purchase price. They include notary's fees, VAT, property registration fee and legal costs, not forgetting the cost of utility connection.

VAT (IVA) or Transfer Tax
Buyers must pay a tax of 7% of the registered value of the property, unless you are buying land, commercial premises or a new garage, when the rate rises to 16%, plus 0.5% stamp duty.

Capital Gains (Plus Valia)
The Plus Valia is a municipal tax on the increase in the value of a property since it last changed hands. The vendor pays the Plus Valia as he is the one who makes the profit. Plus Valia can vary depending on the amount of land and the age of the property, and is based on the official value (valor catastral) which is revalued periodically for this purpose and is usually lower than the market price. You can find out how much the Plus Valia will be by enquiring at the local municipal office (recaudacion municipal)

Legal Fees
Legal fees for conveyancing are usually around 1% of the purchase price, but ask your lawyer what his fees will be. The actual amount will depend on the work involved and there is usually a minimum fee.

Notary Fees
The notary's fee is based on a sliding scale depending on the amount of land, the size of the building, mortgage status, the price etc. It is usually around 0.2% of the declared purchase price and is payable at the notary's office at the time of signing the deed of completion.

Registration Fee
This is based on the declared price of the property and is approximately 40-50% of the notary's fee.

Buying Off-Plan
When buying an uncompleted property "off plan", a reservation deposit, (from 3,000 Euros), usually secures a property for up to 2 weeks. If you pay a reservation fee this is usually lost if you back out of the purchase. If a property is still to be built or completed, payment is made in stages. The contract includes details such as the purchase price, the payment of a deposit, the schedule for payment of the balance or stage payments, any extras that you have agreed to purchase, and the intended date of completion. The normal stage payments, for example, are usually 10% on signing the contract, 30% within 30 days, 30% on the completion of the roof and the final 30% on completion. However each constructor will adapt the schedule of payments according to their planned construction timeframe. The completion of each stage should be verified by your own lawyer or your representative in Spain.

In this situation your only tax liability is with the constructor or promoter for the 7% VAT (IVA) plus 1% Stamp Duty, consequently you will not be expected to pay a further 7% VAT (IVA) at the signing of the registered deed at the Public Notary. The VAT (IVA) rate increases to 16% if you are purchasing plots of land, commercial premises or garage spaces. Plus valia is a tax levied by the local Town Hall based on the particular area in which the property is located, on the surface area of the land, on the catastral value and on the date of the previous title deed. This tax may range from a few hundred Euros to as much as several thousand on larger properties with a lot of land