Closing costs in Spain

Welcome to the Forum

Buying a property is very different from each country to the next. In simple terms. Costs paid by the buyer are typically around 8–14% of the property value and include: Property transfer tax 5–10% (existing properties); VAT (or IVA) at 10% (new properties); Notary costs, title deed tax and land registration fee 1–2.5%.

Since 2008, Spanish property prices have fallen by 30% overall, with some regions even worse off. Individual properties are selling for as little as half their 2007 price. Property prices remain low and are falling, which means that although the price drop can be a boon to new arrivals, making property more affordable, there is a strong risk that your home will lose value before the market picks up again.

There are no restrictions on buying property in Spain, whether it's commercial, residential or land. In fact, Spain encourages investment by foreigners, both resident and non-resident. You will require a financial number which can acquire by visiting a police station with your passport. This is typically done on the day for Spanish or EU citizens but may take a few weeks for others.

Re NIE. 

Original passport and a copy, Application form EX18 and prepayment,  see.
http://extranjeros.empleo.gob.es/es/Mod … imible.pdf

And

https://sede.policia.gob.es:38089/Tasa7 … soRellenar

PS.   At the  national police station where  I work all applicants are required to make an appointment to submit the paperwork. How long one needs to wait varies.   At present it is just over two weeks.

Having submitted the application one needs to return on a nominated day, which is  a few days later,  to collect  the certificate                 

Other extranjeras may be different

SimCityAT and Johncar - Thanks for your information.  What determines  whether the Transfer tax is 5% or 10% or somewhere in between and whether the land registration fee is 1% or 2.5% or in between?  Is the Title deed tax fixed or variable?  I'm looking to contact a notary in Malaga to explore these and other issues such as visa and residents permit.  Any recommendations?

Just in passing.  You can also add on the selling agent's comission of say 5 % which is hidden in the sale price,    so on a 200,000 purchase around 10,000 €