A variety of fees are payable when you buy a property in Spain, which together add around 10 per cent to the purchase price. Fees payable by the buyer include the Notary´s Fees, VAT (IVA) or transfer tax, property registration fee, legal fees, lawyer's and utility connection and registration fees.
 IVA or Transfer Tax
Property buyers must pay a tax of
7 per cent of the registered value, which is VAT (IVA) if you are buying from a company, or transfer tax (impuesto de transisiones patrimoniales / ITP) if you are buying from and individual. ITP is actually 5.5 per cent of the assessed value plus a 0.5 per cent legal document fee.
Land Tax
"Land Tax" (impuesto municipal sobre el incremento del valor de los terrenos, usually called "Plus Valia") is a municipal tax on the increase in the value of the land since the last change of ownership. The law states that the vendor should pay the plus valia as he is the one that has made the profit, although the purchase agreement may state that the buyer pays. Plus valia can vary considerably depending on the amount of land a property occupies and the age of the property. It is low on modern properties such as apartments and townhouses in urbanisations, where land values have increased little since the properties were built and little land involved. Plus valia is based on the official "rateable" value of land (valor catastral) which is officially revalued periodically for this purpose and is usually lower than the actual market price. You can find out how much the plus valia will be beforehand by enquiring at the local municipal office (recaudacion municipal).
Legal Fees
Legal Fees for the conveyancing involved in a property sale are usually around 1 per cent of the purchase price for an average property. The actual amount depends upon the work involved and there's usually a minimum fee, e.g. 900 Euros.
Notary Fees
The Notary who officiates at a sale is paid a fixed fee based on a sliding scale depending on the amount of land, the size of the building and the price. It is usually between 180 and 300 Euros.
Registration Fee
The registration fee is also based on the declared price in the escritura and is similar to the Notary Fee, e.g. 180-300 Euros.
Architect and Surveyor Fees
If you employ an architect or surveyor to inspect a building or plot of land, his fees will vary considerably depending on the work involved and the size of the property. A structural survey of 2-3 bedroom villa usually costs between 600-1.200 Euros.
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