Understanding the taxes and costs associated with buying, selling, or owning a property in Marbella is crucial for a smooth real estate experience. In this comprehensive guide, we aim to provide clear information on property taxes and additional expenses to help you make informed decisions.
- Purchase Costs: When buying a property, it’s important to consider additional costs beyond the listed price. These costs vary depending on whether the property is brand new or secondhand.
- Brand New Properties: If you purchase a property directly from a developer, you will be subject to Value Added Tax (VAT) at a rate of 10% and stamp duty at 1.2% of the purchase price. The VAT is due on the day of the notary.
- Secondhand Properties: For secondhand properties, the transfer tax applies at a rate of 7%. It can be paid within 30 days after the notary.
It’s essential to note that individuals who live in a property may sometimes be registered as developers, making the property subject to VAT. To determine if VAT applies, check if the property is brand new or completely reformed.
- Other Costs of Buying a Property: In addition to taxes, several other costs need to be considered:
- Lawyer Fees: Engaging a lawyer is highly recommended for legal due diligence and transaction assistance. Lawyer fees typically amount to 1% (+VAT) of the purchase price, although they may vary depending on the complexity of the deal.
- Notary and Registry Fees: These fees cover the notary’s services and property registration. They are generally estimated at around 0.25% of the asking price, with potential adjustments for higher-priced properties.
- Bank Account Fees: Transferring funds to the vendor or issuing banker’s drafts may incur bank fees. The charges vary depending on the payment amount, the bank used, and client profiles.
- Mortgage Fees: If you finance your purchase with a bank, you will typically be responsible only for the property valuation cost, ranging from €500 to €2,000. The remaining costs and taxes are paid by the bank.
- Technical Due Diligence: While not obligatory, it is advisable to conduct a technical assessment of secondhand properties to evaluate the condition of installations like air conditioning, heating systems, etc. Costs for such assessments range from €300 to €2,000, depending on property size and required work.
Frequently Asked Questions: We address some common questions related to property fees and potential pitfalls in the buying process:
- Are there additional fees when buying a property in Spain? Apart from taxes and costs outlined in this guide, buyers generally do not incur additional fees related to real estate purchases in Marbella. The vendor is responsible for real estate fees and other expenses when selling the property.
- What are the pitfalls of buying a property in Spain? Potential pitfalls include miscalculating costs and taxes, inadequate preparation for fund transfers and bank account opening, not using a professional lawyer, failing to investigate applicable taxes, and not working with the right real estate agent.
- Is tax payable when purchasing a property in Spain? Yes, it is mandatory to pay taxes when purchasing a property in Spain. Failure to do so can result in serious consequences and penalties. The specific taxes may vary depending on the location of the property.
- What are the rules for buying property in Spain? There are no specific restrictions or rules when buying property in Spain, whether you are a resident or a non-resident. However, obtaining an NIE number, opening a Spanish bank account, and conducting thorough legal and fiscal due diligence are essential steps in the process.
Conclusion: By understanding property taxes and costs in Marbella, you can navigate
