A simple drawing to show the buying capabilities and different paths to get your property.
The tax is called ITP (Tax of Transmisiones Patrimoniales) and needs to be payed directly after closing the sale. If instead you buy a new construction property there is a similar Tax that is described below.
Sample figures for 1st option: Full amount saved
Note that this are example figures just for a reference of the amounts. And it’s only in this region of Catalunya in other parts of Spain it might change depending of Tax regulations.
Property value: 150.000 €
Amount you need saved: 168.000 € Property price + 18000 (12 % includes Tax and Notar)
Sample figures for 2nd option: Loan
Property value: 150.000 €
Amount you need saved: 63.000 € (30% of the total property value + 12% same as 1st option)
As a spanish resident with work in Spain the bank asks to have 20% saved. But when you are working outside Spain they ask for 30% saved, that plus the extra amount of 12% to pay for the property tax and Notaria.
For both ways of buying a property there is the same requirement: Getting a NIE number
You need a local identification number since you need to pay the property tax after closing the sale and also after the Notar step is done, they inform the local administration, that you are the new owner so you can also pay the IBI, that you can discover in the section below. So getting this NIE is an obligatory requirement to close the sale and became the property owner.
New construction homes
If you buy a new-build you will pay VAT of 10% of the price of the home. In addition to VAT, these sales involve Stamp Duty (AJD) which will be 1.5% of the value of the home.
Post sale tax and duties
After closing the sale of the property you will need to pay every 3 months the IBI (Impuesto sobre Bienes e Inmuebles) a tax that is paid according to the cadastral value of the property. This is a municipal tax that all property owners pay and it’s not super high, might be between 300€ and 500€ yearly depending on the property value.
If the apartment is on a community building, there is also the obligation to present yourself via E-Mail and register to pay the community, that is a monthly payment that depends a lot on what type of building it is, it’s age, and if it has additional amenities like elevator or swimming-pool. It’s usually between 40 or 50€ per month.
With all this points but specially with acquiring a property, we will be there to help you, as your local contact. Helping to make the process easier from the initial selection, defining what is the mission after purchase (2nd home, vacation rental, long-time rental, etc) and preparing the documentation to make it happen.