Buying a home in Spain is not complicated. Yet, it is most likely different from buying a home in your home country. In Marbella, when buying a property you use a lawyer and a notary. Everything is very formal but not difficult.
LVS is here to help you
When you decide to work with LVS we take you through our buying method called "Home For Life".
Our method will help you understand the whole buying process in Marbella. You will know exactly where you stand. From the beginning of your search until you have the key to your new home in your hand. We will also help you to get the best financial and mortgage advice should you need.
Marbella Property - Taxes and Fees
There are some taxes and fees you need to account for when buying a home in Marbella. Below we describe these taxes and fees which may vary depending on what kind of property you decide to buy. All fees must be accounted for in your total budget.
Tax for Resales Properties
Property Transfer Tax (I.T.P).
This tax is generally paid by the buyer. The transfer tax varies depending on the sales price of the resale house and applies in tranches.
Ø Transfer tax for resale homes:
Ø 8% applies to the first tranche up to €400,000
Ø 9% applies to the tranche between €400,000 and €700,000
Ø 10% applies to the tranche over €700,000
To give you an example based on a property priced at €1,000,000. The Property Transfer Tax payable on this buy would be: (€400,000 x 8% = €32,000) + (€300,000 x 9% = €27,000) + (€300,000 x 10% = €30,000) = €89,000
The Property Transfer Tax would be €89,000.
Ø Tax for New Developments and Off-Plan Properties
If you buy a new development home or “off-plan” property you must pay VAT (IVA in Spanish). This is instead of the property transfer tax (I.P.T). The rate is currently 10%. You also pay a stamp duty fee on new developments and “off-plan” properties which is currently 1.5%.
These are usually negotiable and vary depending on the sales price of the property. Lawyers’ fees usually range from 0.4% - 1% of the agreed sales price. LVS works with the most respected and professional lawyers available in Marbella. If you want, we connect you with our contacts. You are always welcome to choose whichever lawyer you want. In relation to your home buy, your lawyer will perform due diligence. This includes but is not limited to;
Ø checking that the property is free from charges in the Land Registry
Ø checking if there are any planning charges to the property
Ø checking that the property is up-to-date with all payments. Ie: payment of taxes, community fees and any other expenses
Ø write any private sales contracts needed in relation to your purchase.
Your lawyer will also help with services not relating to the actual purchase. Your Lawyer will make sure you get established in Spain as a new homeowner. These services include but are not limited to:
Ø getting a Spanish Identity Number (N.I.E.).
Ø opening a bank account
Ø home insurance
Ø setting up standing orders to pay bills
Ø organise the change of property owners within the Authorities
Ø getting electricity and water supply contracts.
Notary and Land Registry fees.
You will also have to pay Notary and Land Registry fees. Depending on the property price and the length of the deed these fees can range from about €500 to as much as €3,000.