Buying a property in Spain involves some additional costs that you should factor into your budget.

Taxes in Spain

1. Transaction Tax: In Spain, there is a tax on real estate transactions, known as Impuesto sobre Transmisiones Patrimoniales (ITP). Its amount varies from region to region, but usually ranges from 6% to 10% of the value of the property., this tax applies to secondary market properties.
2. Value Added Tax (VAT): For new properties, value-added tax (IVA) is applied instead of ITP. Currently, the VAT rate for new properties is 10% or 21%, depending on the type of property and location. On the Costa Blanca where we operate it is 10%.
3. Property Tax: Once you purchase a property, you will have to pay an annual property tax, known as Impuesto sobre Bienes Inmuebles (IBI). The amount of this tax depends on the value of the property and the location. On the Costa Blanca, it is between 0.3 and 0.5 percent of the property’s value each.

Other fees in Spain

1. Notary and registration fees: The purchase of real estate requires the participation of a notary public, who prepares the notarial deed. Notary costs are usually proportional to the value of the property. The cost of registering the deed with the local real estate registry, the Land Registry, should also be considered.
2. Realtor fees: If you use an intermediary or real estate agency to purchase a property, they may charge a commission, which is usually 3% to 5% of the property’s value. On the other hand, Blanca Spain does not charge a commission as an agency on the purchase of new development properties.
3. Mortgage costs: If you are planning to get a mortgage to purchase a property, there may be costs associated with bank commissions, property appraisals and other fees associated with the loan process. Very similar to Poland.