In this blog, Welex, leading law and accountant firm in La Costa del Sol, is going to explain real cases of expenses and taxes in the purchase of a property in Andalusia, Spain: Taxes, notary and registry.
If you have decided to buy a property in Andalusia, Spain, we would like to inform you in a very precise way, as these are real cases, about the costs and taxes paid by several buyers in the purchase of their properties in Spain.
Keeping in mind that the taxable base of the transfer tax and documented legal acts is the value of the property transferred, we are going to present several cases with different purchase prices in Spain.
It is necessary to understand that the Tax Agency in Spain has the power to check the price declared in the purchase and sale transaction by the parties, in accordance with the reference values assigned by the Tax Administration itself, which appear in the official tax registers.
If the value determined by the Spanish Tax Administration is different to that declared by the parties, the Administration will notify a regularization proposal for the payment of the tax in accordance with the reference value assigned, communicating the valuation proposal duly motivated, with an expression of the means and criteria used.
The reference value is determined by the General Directorate of the Cadastre, obtained by examining the prices of all property sales and purchases made before a notary public, based on the data of each property in the Real Estate Cadastre in Spain. The reference value is the minimum amount for the payment of transfer tax and documented legal acts.
You should also take into account whether the object of the sale is a single property or several properties, such as garages and storage rooms. When dealing with a larger number of properties, the notary and registry fees will increase.
It is also necessary to consider whether we are dealing with the purchase of a newly constructed property transferred by the Developer, in which case the buyer will have to pay 10% VAT and 1.2% in respect of Documented Legal Acts in Spain. If, on the other hand, it is a second or subsequent transfer, the buyer will have to pay a 7% transfer tax.
Having said this, let us look at the following cases in Spain:
1) Purchase of a newly built home sold by the developer.
Purchase price: The amount of 297.500,00 €.
Expenses and taxes in Spain:
– VAT 10%: 29.750,00 €.
– Documented legal acts. 1.2%: 3.570,00 €.
– Notary’s office: 774,86 €.
– Land Registry: 302,45 €.
2) Purchase of a property of 340.000,00 €.
Expenses and taxes in Spain:
– Transfer Tax 7%: 23.800,00 €.
– Notary’s office: 846.45 €.
– Land Registry: 538.29 €.
3) Purchase of a property, two garages and a storage room for a purchase price of 435.000,00€.
Expenses and taxes in Spain:
– Transfer Tax 7%: 30.450,00 €.
– Notary’s office: 1.529,68 €.
– Land Registry: 1.280,72 €.
If you wish to see more examples, keep reading here: https://www.welex.es/taxes-on-the-purchase-of-a-property-in-andalusia-spain/
We hope the above information has been useful and of interest to you. If you have any questions regarding the payment of your taxes in Spain we invite you to contact our offices for any legal or fiscal advice you may need.