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Expenses, duties and other possible fees when purchase a property in Tenerife, Spain
According the law, when purchase a property (make a deal) in Spain, the buyer pays VAT (7% of the official value stated in the bill of sale for the residential property and 16% for the commercial property and ground plot) , state duties and notary services (about 1-2% of the property value), as well as the bill of sale registration.
Firstly, additional expenses include notary services. Their price depends mainly on the bill of sale type, total value and if the mortgage was formalized. On the average, it will be 800-1000 euros.
Then goes registration of the property. Its rate depends on the property value and usually it doesn´t exceed 1% of the value, stated on the documents provided.
Approximate calculations of the expenses when purchase a property for 100 000 € on the primary market:
VAT (IVA) 8% - 8000€
Stamp duty (IAJD) 0,5% - 500€
Notary - 439€
Property registration - 207€
Formalization - 210€
VAT (notary, registration, formalization) - 34€
Total: 9390 €