Page 15 - A guide to buying a new property in the Balearic Islands
P. 15
A Guide to buying
Balearicislands
new property in the
What does it cost?
6.
On average it is important to add around 12 % of the purchase price to cover
the costs of buying the property. This overall gure takes into account the
following:
IVA or VAT:
Where a property is bought “off plan” or in the process of construction,
then IVA or VAT will be applicable at a rate of 10% and 1.2% Stamp
duty or AJD for the Balearic.
In the case of purchase of land on its own, a higher rate of VAT may
apply.
Notario’s Fee:
The Spanish Notary for drafting the Conveyance, Escritura de
Compraventa will make a charge. The level of the fee charged will depend
on the length of the document and is assessed in accordance with the
notary’s regulatory body’s fee scale. It is wise to allow, approximately,
between € 800 and € 1,200 for this expense
Land Registry Fee:
These fees are charged by the Land Registry for dealing with the
registration of the title. It would be sensible to allow approximately
between € 800 and € 1,000
Plusvalia Tax:
This is primarily the seller’s tax payable to the town hall. It is based on
the notional increase of the value of the land, excluding the buildings
erected on it, from the date it was bought to the date of sale. In the case
of a newly built property being bought from developers it is the vendor
who pays the tax.
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