Buying property in Spain
At Pronova Estates we always recommend that clients obtain professional and independent advice when making what, for many, is the most important financial commitment of their lives. In the meantime, here we provide some useful preliminary insight into the questions you should ask yourself – and eventually your expert advisors – about obtaining a mortgage in Spain, currency exchange options and the benefits of maintaining assets back home.
How to Estimate Costs Related to Your Property Purchase in Spain
Spain is no different to other countries when it comes to buying a property. In addition to the purchase price, there are associated acquisition costs such as notary fees, stamp duty, registry fees, legal and administration expenses, bank fees, VAT (IVA), Transfer Tax, etc. Here is some basic information (based on 2018 regulations) to help you understand and estimate these related expenses, but we strongly recommend you also obtain professional advice – from legal and financial experts - to clarify and confirm your own individual situation. Also bear in mind that mortgage costs are currently the subject of court action and a government review.
New Property tax updated 2021
Updated 26th October 2021
The Andalusian government has approved a decree that includes a reduction in the Transfer Tax (the tax paid on the purchase and sale of second-hand homes, for example), at present the three rates currently set at 8%, 9% and 10% will now be replaced by a flat rate of 7%. In addition, there will also be a small reduction in Stamp Duty Tax from 1.5% to 1.2%.
Yes, as it sounds, 2021 is a good time to buy a property on the Costa del Sol.
The costs associated with paying these taxes on the purchase of a second-hand property will be significantly reduced.
This new reduction will be available now and extended indefinitely.