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subject to zoning regulations would be more costly as this is a complex area of the law. - estate agent : Estate agent usual rate may vary between 3% and 8% of the transaction value, depending on the case. - others: It depends on the financing of the transaction, for illustrative purpose, read question 8 above (e.g., Paperwork “gestoría” costs, insurance costs). IV. CLOSING COSTS/ADJUSTMENTS As a result of the abovementioned, Spanish real estate operations imply some additional costs consisting in Notary and Registry fees that ensure the effectivity of the conveyance of the property. These amounts are, usually, borne by the buyer. However, the main cost that private individuals must take into consideration is the Property Transfer Tax [ Impuesto de Transmisiones Patrimoniales (ITP)], which taxes acquisitions for consideration of goods. The Property Transfer Tax varies depending on the region where the property is located, as each autonomous community in Spain has the authority to set its own rates within a specified range. Generally, the tax rate ranges from 6% to 10% of the property’s purchase price or market value, whichever is higher. This variability can significantly affect the total cost of acquiring the property.
TRANSFER TAX
SPANISH REAL ESTATE PROPERTIES
Autonomous Community
General Rate
Andalusia
7%
Aragón
8%- 10%*
Asturias
8%- 10%*
Balearic Islands
8%-13%*
Canary Islands
6,50%
Cantabria
9%
Castilla la Mancha
9%
Castilla y León
8%
10%-13% For large property holders and/or for the acquisition of entire residential buildings: 20%
Catalonia
TRANSFER TAX
SPANISH REAL ESTATE PROPERTIES
Autonomous Community
General Rate
9% For transfers with a taxable base over 1,000,000, the tax rate applicable would be 11%
Valencian Community
Extremadura
8%-11%*
Galicia
8%
Madrid
6%
Murcia
7,75%
Navarra
6%
Basque Country
7%
La Rioja
7%
(*) Each Autonomous Community may establish reduced tax rates when buyers meet certain criteria, such as the intended use of the property, the buyer’s age, and other qualifying conditions. V. OTHER CLOSING DOCUMENTS Energy Performance Certificate (Certificado de Eficiencia Energética): Required by law,
ILN Real Estate Group – Buying and Selling Real Estate Series
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