The following represent a broad outline of Helpful Tips and Guidance to buying and selling property in Mallorca Spain, based on our own valuable experience, an array of quality contacts and a variety of differing public and private websites.
It is not intended as an exhaustive
guide, so please consult your own legal advisers and check all
prevailing rates, or contact myself to explore fully the benefits of
your own privately appointed Property Search Agent.
You will appreciate, the actual cost of buying a property in Mallorca Spain
is not only the price that you see in the advertising, as it implies
important elements of additional costs such as taxes, fees and other
expenses of various categories, that increase your final budgeted costs if not careful, at the outset!
These cost vary depending on the
status of the property you are buying, i.e whether the property is newly
built or is a resale of an existing property and/or whether for private
or commercial use!
Summary Guide of costs/fees when buying property in Spain:
The
general broad brush rule is that a purchaser will need to budget for
additional costs to cover all tax liabilities and fees somewhere between
12-17% of the purchase price. Please note: all costs are determined at the time of purchase!!
The following being a reasonable indicative breakdown:
- 10% VAT plus 1.2% Stamp duty – New Property purchases (only)
- 8 – 11% ITP Transfer Tax – Resale Property purchases (only)
- 21% VAT plus 1.2% Stamp duty – Commercial purchase/company purchases (only)
- 2-5% – all properties, for notary fees, legal fees, property registry (land) and bank arrangement fees.
Who pays what between seller and buyer?
Spanish Law states that unless stipulated in the Contract, taxes and fees are split between the buyer and the seller as follows:
The Buyer pays: The purchase tax or IVA, Registration fees, bank mortgage fees and Notary costs
The Seller pays: The estate agents fees, capital gains tax, the ‘plus valia’ tax and bank and registry charges to cancel an existing mortgage.
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