In principle, 10% VAT / ITP must be added to every price published online, but that’s not all! In addition to taxes, you must add the costs of the NIE, translation, the solicitor and registration fees at the Land Registry.

1. Taxes

• The ITP (Property Transfer Tax) amounts to 10% of the property’s value and applies to purchases on the secondary market.

The tax is always collected by the notary on the day the deed is signed. It is possible to pay this tax in instalments through a Polish solicitor in Spain; in such cases, it is not the notary but the lawyer who, on behalf of the buyer, submits the documents to the court and pays the tax in instalments to the Tax Office.

• The equivalent of Polish VAT, Value Added Tax (VAT): 10% of the purchase price for new properties from the developer. The developer adds this tax immediately to each payment. It can be said that it is paid in instalments
• The 21% VAT on purchases in the primary market applies to commercial properties, for example, those which, according to the local urban development plan, are intended for tourist use. Let us compare this with Polish apartments in hotels, aparthotels, etc. This scenario is relatively rare
• Stamp duty (AJD) amounts to 1.5% for new properties on the Costa Blanca, the Costa de Valencia and the Costa Cálida

2. Costs associated with the translation of documents.

On occasion, Spanish banks require the translation of documents proving income, regardless of whether you are opening an account or applying for a mortgage. This entails an additional cost.

The good news is that, currently, Sabadell Bank does not require the translation of any documents proving income if these are submitted as an original, unaltered PDF file.

This procedure also applies to applying for a loan in Spain.

3. Notary and registration fees

• Generally, notary fees range from €600 to €1,800.

The notary’s fee depends on the value of the property and the city. Each notary applies slightly different rates within the established minimum and maximum limits. On average, when purchasing a property worth €200,000, the fee does not exceed €1,400. Even if a higher fee is charged, the excess will be refunded after registration.

In summary, the amount of the notary’s fees depends on many factors, such as:

• the price of the property,

• the registration of the mortgage on the property,

• any cancellations of mortgages or other encumbrances

• the number of pages or annexes to the notarial deed,

• the number of pages in the property sale transaction,

• the notary, as some offer lower fees than others

4. Costs related to the loan

If you apply for a loan, you must add the loan costs to the total price, as follows:

• the bank’s commission ranges from 0.5% to 1.5% of the loan amount

• €300–600 for the property valuation

• life insurance
• account maintenance fees

5. Legal fees

• It is recommended that you engage the services of a solicitor, which costs between €600 and up to 1.5% of the property price, depending on the scope of the solicitor’s or legal adviser’s work. The solicitor is responsible for reviewing the documentation and the debt, and for safeguarding the client’s interests.

6. Estate agent fees

• Agency fees: these are usually paid by the seller or the developer. However, in the case of properties from mortgage foreclosures, debt recoveries, or properties in Valencia or Alicante, the agency commission can be around 3–5% of the property price.