PURCHASE TAXES AND FEES
These details are correct to the best of our knowledge, but if you are buying a property in Spain, you should confirm all details with your lawyer before purchase.
As a general guide, 9% should be added to the purchase price of a Spanish property to cover costs involved in the purchase.
6% TRANSFER TAX (I.T.P.) payable by the purchaser of any Real Estate (villas, apartments, houses, land, commercial premises, garages), where the vendor is not a developer or in the business of resales.
7.5% (7% VAT and .5 % STAMP DUTY) for any VILLA, APARTMENT, HOUSE where the vendor is a developer, promoter or trader in these properties.
NOTARY FEES AND PROPERTY REGISTRY INSCRIPTION FEES
Notary fees are related to the number of pages or complexity of the title deed (eg. transcription of statutes, payment in stages), and on the purchase price of the property, but not directly proportionate. As an example, an apartment costing £200,000 will cost around £300 in notary fees; a villa costing £350,000 will cost around £350 in notary fees. Above this, the fees increase very slightly. The property registry inscription fees amount to 65% of the notary fees.
An "added value" tax based upon the increase of the Town Hall Index value of the price per square metre OF THE LAND from the prior purchase (by the current vendor) to the present sale.
In principle, this tax corresponds to the vendor but, in common practice, is often paid by the purchaser. As there are several variable factors used in calculating this tax (location, area of land, building volume permitted, period of ownership of the vendor), the amount payable can vary substantially and should be verified before proceeding with the purchase. The basis of the calculation remains the same whether or not the land is built upon.
GENERAL RUNNING COSTS:
LOCAL RATES -
Payable annually. Calculated on the rateable value (catastral) of the land assigned by the Spanish Tax Office. This value is that of the land plus the building, and is rated on type, location, and useage. The Town Hall in each municipal area sets the chargable rate. It is advisable to ascertain annual local rates for a property before purchase.
REFUSE COLLECTION -
The rate is applied by the local Town Hall, based on the individual property, and is payable every 6 months.
WATER RATES -
Water consumption is calculated by the water meter, and the rate is payable every 3 months. Payment can be made by bank direct debit or directly at the Town Hall.
COMMUNITY FEES -
As a general explanation, the COMMUNITY OF CO-PROPRIETORS or HOMEOWNERS' ASSOCIATION, is a legal entity comprised exclusively of the owners of the apartments in a building, or properties on an estate. The purpose of the Community is to own and maintain the COMMON ELEMENTS of the building or estate in question, and a homeowner participates in the expenses of the community on a pro-rata basis with the other owners, usually calculated on the pro-rata size of the apartment, or plot, as a percentage of the total area of all the apartments or plots.
A budget for the annual community expenses is presented at the ANNUAL GENERAL MEETING OF CO-PROPRIETORS, and the owners or their representatives must approve the budget by majority vote of those present at the meeting. Expenses can vary substantially, according to the services required and normally include salary and social security of the hall porter, common garden maintenance, lift maintenance, repairs to building, refuse collection, electricity for lighting common areas, insurance for building, security if required, and administration fees. The President of the community must, by law, be an owner and serves without pay.
As a guide, an average annual cost for a £175,000 apartment with £30,000 contents would be in the region of £175. For a £500,000 villa with contents of £100,000, annual cost would be in the region of £950. In an apartment building, the responsibility for insuring the building lies with the Homeowners' Association, at a level which would cover the rebuilding. If this is adequately covered, the individual's insurance policy needs only to cover damage to the apartment interior, contents, and third party liability. However, it is adviseable for individuals to insure the building at "first risk" in the event that the Community insurance is not comprehensive.
As a guide, the average hourly rate is in the region of £8. The cost of garden maintenance for properties with communal areas is included in the community fees.
Billed bimonthly. There is a minimum rate applied (whether you are in residence or not), based on the potential amount of electricity your property could use if all power and lights were in use. As a rough guide, the estimated minimum charge for an apartment is likely to range between £15 and £23 per month, and for a villa between £37 to £55 per month, but it is largely dependant on the electrical installation. The rate is approximately £5p per Kwh plus tax.
Billed bimonthly. The standard charge varies according to equipment installed, but is approximately £9 per month. As an example of overseas call charges, a 3-minute call to any EC country is about £1.