Buying a property in Spain has different costs and expenses depending on which type of property you are buying.

As this might be very complicated at the beginning for most of buyers, we are going to explain the two most important taxes that applies to all properties:

IVA (or VAT in English) is a tax charged on most goods and services in Spain. The full rate and the most common one is 21%. However, on property sales it is reduced to 10%, only lands for property developments are charged at 21%, therefore be aware of which kind of property you want to buy and its taxation.

ITP in Andalusia is as follows:

  • 8% When the property value is less than 400.000 EUR
  • 9% when the property value is from 400.000 EUR to 700.000 EUR
  • 10% when the property value exceeds 700.000 EUR

The main difference among these two taxes is that IVA (or VAT) is only charged to new property sales, while when buying a second-hand home you must pay ITP, which will be calculated depending on the community (Notice it is an accumulative tax).

Our aim is to make the process of buying a property in Spain as simple as possible for our clients, that’s why we will advise you through all steps of the purchase.