(For reference only; actual amounts paid shall prevail)
1. Stamp Duty (IAJD) - Paid upon new property transactions
a) One-time payment, to be paid within thirty days after the purchase contract is issued.
b) The stamp duty rate ranges from 0.1% to 1.5% of the total property price (the rate fluctuates within this range depending on the autonomous region).
Example: For a property with a net value of 500,000 Euros, the cost is 500 - 7,500 Euros.
2. Value Added Tax (IVA) - Paid upon new property transactions
a) One-time payment, to be paid within thirty days after the purchase contract is issued.
b) A 10% VAT on the property price must be paid for new property transactions.
Example: For a property with a net value of 500,000 Euros, the cost is 50,000 Euros.
3. Property Transfer Tax (ITP):
A transfer tax of 6%-10% of the property price must be paid for second-hand property transactions (the rate fluctuates within this range depending on the autonomous region).
Example: For a property with a net value of 500,000 Euros, the cost is 30,000 - 50,000 Euros;
4. Property Registration Fee
The land registration fee is calculated based on the government's fee schedule and determined according to the specific list. It is approximately 0.07% of the total property price.
Example: For a property with a net value of 500,000 Euros, the cost is approximately 350 Euros.
5. Property Notary Fee
The purchase contract must be notarized at a notary office, and the property must be registered at the Land Registry. The notary fee is calculated based on the government's tax table and determined by the net value of the property.
The notary fee for a property with a net value of 500,000 Euros is between 600 and 800 Euros.
6. Legal Fees
The legal fee for purchasing a property is approximately 1.1% of the total property price (net value) + 21% VAT.
7. Notary Fee for Power of Attorney
Signing a power of attorney must be done at a notary office, with notary fees ranging from 50 to 80 Euros.
Annual Expense Breakdown:
8. Real Estate Tax (IBI)
a) Paid annually on January 1st / paid quarterly.
b) The tax rate is 0.4% - 1.10% of the total property price (net value). (The rate fluctuates within this range based on the municipal value of each city).
Example: For a property with a net value of 500,000 Euros, the cost is 2,000 - 5,500 Euros/year.
9. Municipal Tax
Property owners must pay local municipal taxes to local authorities based on the value of their property. The tax is determined by the property value and the cadastral value.
It is approximately 1% of the property price.
10. Personal Income Tax for Non-Resident Property Owners (IRPF) - Paid annually/quarterly
a) Personal Income Tax, or wealth tax/impuesto de renta (regardless of whether one is a tax resident), is only levied on those who have salary income in Spain (salariado). Therefore, as long as you do not work, you do not need to pay the 2% property tax annually. The amount will be indicated on the real estate tax bill.
b) If the property is rented out, Personal Income Tax is paid at 18-24% of the rental income.
11. Property Management Fees:
Property management fees vary depending on the type of property and the specific development purchased by the client, generally around 1,000 Euros/year.
