REAL ESTATE PURCHASE IN SPAIN WITHOUT MORTGAGE ATTRACTION

Notary
The amount of notary fees is regulated by the state, that is, all notaries in Spain must charge the same fee for similar services.
Thus, the execution of a contract for the sale of real estate (escritura pública de compraventa) costs from € 600 depending on the price of the property. For example, in the case of housing worth € 100,000, this amount will be € 850, and if the property costs € 250,000 - about € 1000.

Duty Registro de la Propiedad
For registration of the contract of sale in the Register of Private Property (Registro de la Propiedad) you need to pay a fee of an average of € 400 - € 650, depending on the value of the property.

Taxes when buying a new home in Spain
When it comes to buying new housing, you need to pay VAT (IVA), the amount of which in 2019 is 10% of the value of the property in all autonomous communities in Spain. The exception is the Canary Islands, where instead of an IVA IGIC is paid at a rate of 6.5%.
That is, if you purchase a new building at a price of € 100,000, you will have to add another € 10,000 to the cost, and if the selected housing costs € 250,000 - € 25,000. If the purchased property is part of a social housing fund, VAT can be reduced to 4 %
When buying new housing, the tax on legal documented acts (Impuesto de Actos Jurídicos Documentados - IAJD) should also be added to VAT. In the Valencian community, Murcia and Andalusia, this tax is 1.5% of the cost of housing.

Taxes on the purchase of secondary housing in Spain
If you are purchasing a secondary home, you do not need to pay VAT, but you must pay the transfer tax (Impuesto sobre las Transmisiones Patrimoniales - ITP). In the Valencian community, the base rate of this tax is 10% of the amount indicated in the deed, in Murcia and Andalusia - 8%. There are discounts for young people, large families, persons with disabilities, when buying social housing, etc.

Costs of buying a home in Spain in a mortgage

According to the new mortgage law, which entered into force in June 2019, the client bears the cost of evaluating the housing that he wants to purchase in a mortgage. Having received information about the assessment, the bank decides how much of the amount it can finance. Currently, as a rule, this is not more than 80% of the value of the object. The cost of evaluating housing in 2019 averages € 250 - € 600, depending on the property and the selected appraiser.
The appraiser’s opinion is valid for 6 months.

Commission for opening a mortgage
This fee can reach 2% of the amount of the mortgage loan, however, many banks do not charge this commission.

Tax on transfer of ownership and documented legal acts (Impuesto de Transmisiones Patrimoniales y Actos Jurídicos Documentados - ITP-AJD)
Since November 2018, a law came into force in Spain, according to which, when a mortgage loan is issued, this tax should be paid by banks, not the home buyer.

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Notary
In accordance with the aforementioned mortgage law, a bank pays a notary's fee for drawing up a mortgage sale contract (escritura pública del préstamo hipotecario).

Duty Registro de la Propiedad
In accordance with the aforementioned mortgage law, the bank pays the fee for registering a mortgage agreement with Registro de la Propiedad.

Experts recommend laying 10 - 12% of the cost of housing for notarial expenses, expenses for the assessment and registration of property, as well as taxes (VAT, transfer tax, etc.). The total amount of additional costs depends on the value of the acquired property and on whether it is a new or secondary housing.