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Property Purchase Costs in Costa del Sol
Property Purchase Costs
Andalucia South of Spain, Costa Del Sol
The total official purchase costs for resale residential property are around 10-11% and around 12% for new properties, plus lawyer´s fees.
1.Transfer tax - I.T.P - Paid by Buyer.
Resale properties: Villas, Apartments, Townhouses:
8% is applicable up to amount of 400 000€.
9% is applicable to the amount between 400 000€ and 700 000€.
10% is applicable to the amount above 700 000€.
2.VAT and stamp duty - Paid by Buyer.
New Developments: Villas, Apartments, Townhouses - 10% plus 1,5%
First sale or resale of parcels of land, and for the first sale new commercial premises - 21% plus 1,5%.
3.Notary and property registry fees - Paid by Buyer.
Average cost is 3 000€ and increase according to the number of pages, complexity of the title deed, and value of the property.
4.Lawyer´s Fee - Paid by Buyer.
Typically more or less 1% of the selling price depending of the lawyer and the price of the property.
5. Municipal Added Value Tax Plus Valía - Paid by Vendor (unless otherwise negotiated).
Usually the Vendor is responsable for this payment. This tax can be a few hundred Euros or as much as thousands of Euros on a property with a lot of land that has not changed owner in many years. It is a tax based upon the increase in the index value of a property between the year of purchase to the year of sale.