Property Purchase Costs
Marbella is one of the top destinations for expatriates, villas, townhouses, and apartments in the Marbella area consistently maintain their high value. Over the past decade, property prices have steadily increased year after year. This means you can invest your savings with confidence, knowing your home is unlikely to lose value.
In addition, Marbella is a popular summer hotspot for tourists from the UK and across Europe. If you plan to rent out your property, it can provide a lucrative monthly income, with most investments generating an estimated annual return between 3.5% and 10%.
In Andalucia South of Spain, Costa Del Sol, the total official purchase costs for resale residential property are around 10-11% and around 12% for new properties, plus lawyer´s fees.
Transfer tax - I.T.P - Paid by Buyer.
Resale properties: Villas, Apartments, Townhouses:
- 8% is applicable up to amount of 400 000€.
- 9% is applicable to the amount between 400 000€ and 700 000€.
- 10% is applicable to the amount above 700 000€.
VAT and stamp duty - Paid by Buyer.
New Developments: Villas, Apartments, Townhouses – 10% plus 1,5% – First sale or resale of parcels of land, and for the first sale new commercial premises – 21% plus 1,5%.
Notary and Property Registry Fees - Paid by Buyer.
Average cost is 3 000€ and increase according to the number of pages, complexity of the title deed, and value of the property.
Lawyer´s Fee - Paid by Buyer.
Typically more or less 1% of the selling price depending of the lawyer and the price of the property.
Municipal Added Value Tax Plus Valía - Paid by Vendor (unless otherwise negotiated).
Usually the Vendor is responsable for this payment. This tax can be a few hundred Euros or as much as thousands of Euros on a property with a lot of land that has not changed owner in many years. It is a tax based upon the increase in the index value of a property between the year of purchase to the year of sale.
