Which are the expenses related to a purchase agreement?
When an action of sale of a property is made there are expenses that must be taken into account after the activity. Here we outline what you need to know.
Notary fees
What is it? The Fees for the intervention of the Notary as public notary so that the document is a public deed and can be registered in the Land Registry.
How much? The price is determined by the value of the sale, but can also influence: the length of the writing, the number of copies. Take into account that at this fee we must add VAT / IGIC (Canary Islands)
Who pays for it? The buyer
Who is paid? Notary
When is it paid? When the Deed of Sale is written
Registry expenses
What is it? The Fees for the intervention of the Registrar that verifies the legality of the document and registers it in the Property Registry.
How much? According to the tariffs of the Property Registrars. Take into account that at this fee we must add VAT / IGIC (Canary Islands)
Who pays for it? The buyer
Who is paid? To the Property Registrar
When is it paid? At the time of Registration in the Registry
Taxes
What is it? Taxes on the sale of real estate:
- AJD Tax that is paid whenever the sale is taxed. If you pay with ITP (Transfer of Property Tax), AJD is NOT settled.
- VAT or ITP As applicable
How much? Approx. 1% of the value of the sale. No variation depending on the Autonomous Communities or the buyer’s conditions.
Who pays for it? The buyer
When is it paid? At the time of the Sale
Capital gain
What is it? Although everyone knows it as “Plusvalía”, it is actually the Tax on the increase in the value of land of an urban nature. It is a municipal tax that is paid every time there is a transmission of the house (sale).
How much? The difference in value from the previous sale (if it exists) and the current one, is corrected based on the complete years elapsed and a percentage that varies according to the municipality is applied. The values are assigned by the municipality, here it does not influence how much has been paid.
Who pays for it? the seller
Who is paid? In the city Hall
When is it paid? 30 calendar days from the date of the Deed
