Costs and taxes associated with buying and selling a home
These are the costs associated with the purchase of a property in 2024:
The notary's office costs between 600 and 900 euros, depending on the price of the property. For example, for a flat of 250,000 euros you would have to pay around 1,000 euros.
Registering the deeds signed by the notary in the Land Registry costs an average of 500/600 euros, depending on the price of the property.
The only optional cost of buying or selling a property is that of the solicitor that the client can hire to process the settlement of taxes and other paperwork. They are free professionals, so in this case there are no specific fees. Furthermore, they are usually only contracted when a mortgage is applied for to purchase the property. Their approximate cost is 300 euros.
The amount depends on the price of the house and whether it is new or second hand.
As for taxes on the purchase of a new home, the most important tax to pay is VAT, which in 2024 amounts to 10%. In other words, this would mean 25,000 euros on a 250,000 euro house.
In addition to the VAT, there is a second tax: the stamp duty (IAJD), which is paid by the buyer and depends on each autonomous community. In the Valencian Community and in the Region of Murcia, 1.5% of the value of the property is being applied. On top of this 1.5%, there will be a 90% discount if the property is registered as a primary residence.
On the other hand, for second-hand properties, the most important tax is the Transfer Tax (ITP). In the Valencian Community a rate of 10% is being applied for primary residences, while in the Region of Murcia it is 8%.
If the buyer applies for a mortgage loan, there are other additional expenses:
In general, the entities are lending around 80% of the appraisal value. The appraisal costs between 250 and 600 euros, depending on the entity and the type of property and its valuation.
This can be up to 2% of the capital loaned, an amount that is deducted directly from the money given to the mortgagor.
Real estate fees:
Some real estate agencies charge their clients for finding them the property they end up buying.
How to pay the costs of buying a home
If the buyer hires a solicitor, they will take care of all the paperwork and the payment of the expenses. In this case, the buyer must make a provision of funds a few days before the signing of the deed. The solicitor will use this amount to charge their fee, as well as the notary's, the registrar's and the tax office's invoices. If there is any money left over, the solicitor will return it to the buyer. If there is any money still left to pay, the buyer will have to make a new deposit.
If, on the other hand, the buyer decides to carry out the formalities himself, he must pay the notary's and registrar's bills at the same visit to the notary's office.
As far as taxes are concerned, VAT is paid to the seller, while ITP and IAJD are paid to the tax office of the buyer's autonomous community.
What are the total costs of buying a property?
The total costs and taxes to be paid for the purchase of a property range between 10% and 12% of the sale price, depending on the value of the property and the autonomous community in which th