When buying a home in Spain, it's vital to know precisely what you're getting into. As a homeowner in Spain, it is equally essential to be aware of the continuing expenditures you will spend.
As far as the expenses of purchasing and owning a Spanish home are concerned, you need to be well-informed and conduct your calculations rather than relying on other people's opinions. This article listed the overall cost factors of buying and owning a property in Spain.
The Overall Cost of Buying a Property
As a buyer of property in Spain, you will have to pay a variety of expenses and taxes in addition to the property price. VAT & Stamp Duty or Transfer Tax, depending on whether you're purchasing new or second-hand, will have to be paid if you're buying new. The differences between the two instances, as well as the expenses and taxes that are similar.
Buying A New Home from A Bank
As a buyer of a new house in Spain, these are the fees you'll have to bear. How old the building does not matter. An entirely new home has never been sold before.
VAT & Stamp Duty (IVA & Actos Jurídicos Documentados – AJD)
Commercial and residential properties sold for the first time are subject to these taxes, as are plots of land sold for the first time and have never been occupied before. Since the VAT is a national tax, it does not matter where the property is (except the Canaries, which have their VAT version).
It is now 10 percent on residential properties (villas, apartments, etc.) and 21 percent on commercial and land purchases in Spain. IGIC (Impuesto General Indirecto Canario) is the Canary Islands' general indirect tax on new houses. It is presently 4.5 percent.