Dreaming of a sunny Spanish home in beautiful Andalucía? Whether you’re buying a vacation getaway, investment property, or relocating permanently, it’s important to understand the property taxes involved in the purchase.
Here’s a breakdown of the key taxes and costs you’ll need to budget for when buying property in Andalucía:
1. Transfer Tax (ITP) – Resale Properties
If you’re buying a second-hand (resale) property, you’ll need to pay the Impuesto sobre Transmisiones Patrimoniales (ITP), or Property Transfer Tax.
Current ITP rate in Andalucía (as of 2024):
7% flat rate
(This rate was reduced in recent years to encourage real estate investment.)
Example: On a €300,000 resale property, ITP would be €21,000.
2. VAT and Stamp Duty – New Properties
If you’re buying a brand new property from a developer, you won’t pay ITP. Instead, you’ll pay:
• VAT (IVA): 10% of the purchase price
• Stamp Duty (AJD): 1.2% of the purchase price in Andalucía
Example: On a €300,000 new-build property:
• VAT = €30,000
• Stamp Duty = €3,600
Total = €33,600
3. Notary & Land Registry Fees
These are standard administrative costs associated with registering the property in your name.
• Notary Fees: Approx. €500–€1,000
• Land Registry Fees: Approx. €300–€600
These can vary depending on the complexity and value of the property.
4. Legal Fees (Optional but Recommended)
Hiring a local lawyer (abogado) to handle due diligence and contracts is strongly advised.
• Expect to pay around 1% of the purchase price, plus VAT (21%)
Final Tips
• Taxes are usually paid at the time of signing the public deed (escritura).
• If you’re a non-resident, consider additional taxes like the annual Non-Resident Income Tax (IRNR).
• Always seek advice from a local lawyer or tax advisor to ensure compliance.
Thinking of buying in Andalucía? With clear skies, Mediterranean charm, and competitive taxes, it’s one of Spain’s most attractive property markets.
Need help finding the right home or legal guidance? Contact us today – we’re here to make your Spanish property dream a reality.