# Extra on purchasing property



## Tammydog (Mar 7, 2015)

been told to allow 15per cent on top of purchase prices today? Thought it was 10 plus legal fees?


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## tonymar (Jan 29, 2015)

It used to be 10% because the tax was only 7% when we bought years ago

but now the I think the tax is 10% so I guess 15 % may be correct now with all the other fees ?


Cheers Tony


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## ddrysdale99 (Apr 3, 2014)

It depends on which region you'll buy in.
I'm budgeting 10.5% + 3000 Euros


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## Pazcat (Mar 24, 2010)

If you expect 15% and budget for it then you will be pleasantly surprised when it works out to be 14%.

You have 10% for VAT, 1% Stamp duty, up to 1% Notary fees, then your legal, money transfers and registration costs. Etc...


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## ddrysdale99 (Apr 3, 2014)

VAT? Only on a new build surely?


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## Chopera (Apr 22, 2013)

In Madrid the second hand property tax is still something like 6%. I think in Barcelona and Valencia it's 10%. It's 10% on new builds regardless of region. On top of that it's maybe up to 3% for legal fees, notary fees, registry fees, other taxes, etc. If you need to take out a mortgage, connect services, etc then there'll be those fees on top of that. 15% is probably a worst case scenario, I suspect 13% is probably nearer to what most people pay.


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## Chopera (Apr 22, 2013)

Also be careful because some estate agents charge a percentage of their services to the buyer.


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## Pazcat (Mar 24, 2010)

ddrysdale99 said:


> VAT? Only on a new build surely?


Well, VAT/ITP whichever way they call it but like you say it depends on the region, it's 10% here and I believe Tammy was looking in this region.


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## snikpoh (Nov 19, 2007)

Pazcat said:


> Well, VAT/ITP whichever way they call it but like you say it depends on the region, it's 10% here and I believe Tammy was looking in this region.


Come on, they are completely separate taxes - you know that!


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## Pazcat (Mar 24, 2010)

10% either way here. My wallet can't tell the difference.


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## lisawirs (Apr 17, 2015)

You also have to find out what the "valor catastral" multiplication factor will be in your area. In ours (Valencia) we bought a property planning for the 10% tax but then received a bill that the "catastral" value we were supposed to pay tax on was x 4.0. Now we owe a lot more tax.


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## Gazeebo (Jan 23, 2015)

Pazcat said:


> 10% either way here. My wallet can't tell the difference.


We have been told 10% - 12% in Alicante region. We are allowing 15% as belt and braces!:eyebrows:


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## snikpoh (Nov 19, 2007)

Gazeebo said:


> We have been told 10% - 12% in Alicante region. We are allowing 15% as belt and braces!:eyebrows:


Please come back and tell us what the actual percentage was as this will greatly help others in the future.


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## Tammydog (Mar 7, 2015)

Will do! May look at new builds as well so they may be higher per cent. But think they will be economical to run. As have to be energy efficient under new building laws. Let you know tho!


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## ddrysdale99 (Apr 3, 2014)

It depends on where you are and (in Andalucia) how much you pay.


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## Lynn R (Feb 21, 2014)

Just make sure you get the agents to tell you the official "valor tasacion" of any property you are initerested in buying (it's the catastral value times the municipal multiplier for the area). If the price you pay for the property is below that (not unusual in these days of big reductions on original selling prices) then the Spanish Tax Office will consider that you should have paid the transfer tax based on the official value rather than the actual sale price, and send you a bill for the difference.


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## Tammydog (Mar 7, 2015)

Thanks Lynne
I was aware of something like this.but did not know what it was called. But I knew it as a prosperity tax that is charged. One Agent did actually warn me of this. So guess he sounds the honest one? But at least I know what to ask for now. The agents won't try and say as the rest, that they have never heard of it....cheers


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## Gazeebo (Jan 23, 2015)

snikpoh said:


> Please come back and tell us what the actual percentage was as this will greatly help others in the future.


Will do.


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## Tammydog (Mar 7, 2015)

Yes they will but thanks to this forum I now know better &#55357;&#56844;


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