When purchasing property in Spain, it’s important to be aware of the various taxes that apply, as they can significantly affect the overall cost of the transaction. Below are the main taxes you’ll encounter:

VAT (IVA) – Value Added Tax
If you’re buying a newly built property from a developer, you’ll pay VAT (IVA) at a rate of 10%. This tax is applied to the purchase price of the property.

Property Transfer Tax (ITP)
For second-hand properties, the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales or ITP) applies. Rates vary depending on the region, but typically range from 6% to 10% of the purchase price.

Stamp Duty (Actos Jurídicos Documentados)
This tax is applied on the official deed of the property sale and typically ranges from 0.5% to 1.5% of the purchase price or the property’s official value, depending on the region.

Notary and Registration Fees
You’ll also need to pay fees for the notary who certifies the deed of sale and for registering the property with the local land registry. These are usually a few hundred euros but can vary based on the price and complexity of the property.

Annual Property Taxes
Once you’ve purchased your property, you’ll be subject to annual property taxes such as IBI (Impuesto sobre Bienes Inmuebles), which is a municipal property tax, and possibly others, depending on the area.

Being aware of these taxes will help you budget effectively for your property purchase in Spain. At Green Villas Estate, we not only assist you in finding your dream home in the stunning Spanish landscapes, but also specialize in identifying high-yield investment opportunities for businessmen looking to make savvy property investments.

Whether you’re seeking a serene retreat or a lucrative investment, our expert team is here to provide you with tailored advice and ensure a smooth and profitable property experience.

Contact us today to explore the best of both worlds—your dream home and top investment opportunities in Spain!