Legal & running costs

When you purchase a property in Spain the costs are divided into 2 types, the initial legal and notary costs which are a one off payment and the ongoing running costs of the property.

Non-recurring taxes and fees when purchasing a property:

Value Added Tax

or I.V.A. (Impuesto sobre Valor Añadido) at 7% of the declared (registered) value is charged on newly built properties. I.V.A. is charged at 16% of the declared (registered) value on commercial premises and land bought directly from the developer.

Transfer Tax

or I.T.P. (Impuesto de Transmisiones Patrimoniales) at 7% of the declared (registered) value is charged on resale property. The 7% rate also applies to the purchase of commercial premises or land, when the seller is acting as a private individual.

Stamp Tax

A tax of 1% called A.J.D. (Actos Juridicos Documentados) is charged by the notary for newly built properties.

Notary Fees

The notary fees are in the region of € 300 to € 1.000, the registry fees are in the region of € 180 to € 400.

Water and Electricity connection charges

With new properties, because of the need to draw up contracts etc., the costs of supplying the utilities is usually about € 300, with resale properties, however, there is merely a change of ownership, so combined costs are usually kept to about € 100.

Municipal Tax (Plus Valía)

This can vary considerably, as it depends on a variety of factors which have given rise to the increase in value of the ground on which the property is situated, but generally amounts to between € 30 and € 300.

Fiscal Identification Number

Owners of a property in Spain are bound by law to have a spanish fiscal identification number, the application fee is in the region of € 70.

After sales administration fee

In contrast to other companies Baron Villas does not charge you any administration fees before or after sales!

Annual Taxes & Fees

Council Tax (SUMA)

is for the various services supplied by the council, and costs between € 90 and € 300.

Wealth Tax

is charged at 0,2% to 0,3% of the property`s declared (registered) value.

Income Tax

is charged at 0,5% of the property`s catastro value (the catastro is the government`s statistical register of property). This value is normally less than the registered value.

Community Fees

Depending on the amenities of individual residential complexes, these vary between € 60 and € 1.500.

Water, Refuse Collection, Electricity & Gas

One cubic metre of water costs about € 1,22; one kilowatt hour of electricity costs around € 0,20; a bottle of butane gas costs about € 8,50.

Fiscal Representation and tax consultancy

about € 120.