Page 15 - A guide to buying a new property in Valencia

A Guide to buying
COMMUNITYOFVALENCIA
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 1.5% Stamp

duty or AJD for the Community of Valencia.

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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