Expenses and Taxes When Buying a New Property in Spain

Taxes on buying a new property

Property Cost

The primary expense is the cost of the property itself. New builds in Spain are often more expensive than second-hand properties due to the use of modern materials, energy efficiency, and new infrastructure. Developers frequently offer amenities such as swimming pools, gyms, and secured areas, which add to the price.

Before purchasing, discuss the terms of the deal with the developer, including delivery timelines, the possibility of project modifications, and other details. It’s wise to budget with a small buffer for unexpected expenses.

Taxes

Taxes make up a significant portion of the costs when buying a new property. For new builds, there are two main taxes to account for:

  • VAT (IVA): 10% for standard properties; 4% for subsidized housing (VPO).
  • Stamp Duty (IAJD): Rates vary by region, from 0.5% to 1.5%.

Other Expenses

Additional costs include notary fees, registration, gestoría services, mortgage-related fees, and community charges.

Key Takeaways

Investing in a new property in Spain can be a profitable venture, but it comes with substantial expenses. Plan your budget carefully and review the terms of the deal thoroughly.

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