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Important information in respect of property purchase in Spain

From the legal point of view a lawyer should be involved in order to verify that the property is free of any charges and in compliance with building regulations. It is standard to sign a private purchase agreement with a 10% deposit and to complete and pay the balance between 1-2 months simultaneously with the signature of the purchase deed at the Public Notary.

Regarding the tax consequences you should obtain qualified advice as each situation can be different. Nevertheless, in principle you either pay stamp duty or VAT on a property purchase. VAT is applicable when you buy from a developer in the rate of 10% for properties at the current tax rates. Stamp duty is paid on any re-sale and the rates in Andalucía go from 8% (up to Euros 400.000; 9% up to Euros 700.000 and 10% above Euros 700.000. In addition you should count with approx. 1,5% legal fees (including notary fees, solicitor fees and land registry fees)

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