Answers written by Christopher Clover. Christopher Clover is graduate cum laude in Economics of the University of Virginia (1969), a permanent resident of Marbella since 1973, and the owner and Managing Director of Marbella’s longest established Real Estate Agency, Panorama, with offices opposite the Hotel Marbella Club and in the Hotel Puente Romano.
This is an “added value” tax based upon the increase of the Town Hall index value of the land only, from the prior (vendor’s) purchase to the present sale. It is usually not a significant amount with respect to apartments or townhouses – less than €1000 for the most part for an apartment or townhouse which last changed hands five or six years ago – but can be more in the case of villas with a large tract of land.
This tax corresponds, by its nature, to the vendor who is responsible for its payment, unless otherwise negotiated. As there are several variable factors used in calculating this tax, especially the length of time of ownership of the property, the amount payable can vary substantially and should be verified before proceeding with the purchase.
The total official costs involved in purchasing a constructed residential property should be around 9-10% for resale properties or around 12% for new properties if VAT is paid on the purchase price, plus lawyer’s fees.
Notary fees can cost up to approximately €1.750 although the cost increases according to the number of pages or complexity of the title deed (e.g. transcription of statutes, payment in stages, property partially finished, etc.). As an example, an apartment costing €300,000 will cost around €546 in notary fees, whilst a property costing €600,000 will cost around €678 in notary fees. Any higher than this amount, the fees go up marginally. The property registry inscription fees also depend on the complexity of the transaction. For example, fees for an apartment costing €600.000 to be registered in the name of one person and purchased without a mortgage loan, will cost around €300. For an apartment with the same sales price to be registered in the name of 2 persons and purchased with a mortgage loan, will cost around €800.
Transfer Tax (I.T.P.) Since April 28 2021, the Regional Government of Ansalusia reduced permanently the Transfer Tax to a flat rate of 7% payable by the buyer for the purchase of any Real Estate (villas, flats, land, commercial premises, garages), provided the vendor is not a developer or normally trading in the business of resale properties (waiver to VAT exemption).
Reduced transfer tax for real estate companies or professionals that buy resale property and sell within 5 years, at 2%.
VAT at 10% and STAMP DUTY (A.J.D: Actos Jurídicos Documentados, on notarisation of documents, only payable on land and new property sales) has also been reduced to 1.2% – For any VILLA or APARTMENT, or GARAGE that is annexed to an apartment, where the vendor is a developer, promoter or habitual trader of brand-new properties.
VAT at 21% and STAMP DUTY (A.J.D: Actos Jurídicos Documentados, on notarisation of documents, only payable on land and new property sales) at 1.2% – for PARCELS OF LAND, COMMERCIAL PREMISES or COMMERCIAL GARAGE SPACES, where the vendor is a developer, promoter or habitual trader. This covers virtually all NEWLY URBANIZED LAND PARCELS and NEWLY BUILT COMMERCIAL PREMISES. This only covers resale properties when the vendor falls into one of the above categories.