Buying a home in Spain is not complicated. Yet, it is most likely different from buying a home in your home country. In Marbella, when buying a property you use a lawyer and a notary. Everything is very formal but not difficult.
LVS is here to help youWhen you decide to work with LVS we take you through our buying method called "Home For Life".
Our method will help you understand the whole buying process in Marbella. You will know exactly where you stand. From the beginning of your search until you have the key to your new home in your hand. We will also help you to get the best financial and mortgage advice should you need.
Marbella Property - Taxes and FeesThere are some taxes and fees you need to account for when buying a home in Marbella. Below we describe these taxes and fees which may vary depending on what kind of property you decide to buy. All fees must be accounted for in your total budget.
Tax for Resales Properties
Property Transfer Tax (I.T.P).
This tax is generally paid by the buyer. The transfer tax varies depending on the sales price of the resale house and applies in tranches.
Ø Transfer tax for resale homes:
The Andalucian Government has introduced a special reduction in this tax to a fixed rate of 7% until 31st December 2021. After this date it 'may' revert to the previous rates shown below.
- Ø 8% applies to the first tranche up to €400,000
- Ø 9% applies to the tranche between €400,000 and €700,000
- Ø 10% applies to the tranche over €700,000
To give you an example based on a property priced at €1,000,000. The Property Transfer Tax payable on this buy would be: Under the 2021 reduced rate offer €70,000
Under the previous non offer rate the Property Transfer Tax would be €89,000. Calculate as follows (€400,000 x 8% = €32,000) + (€300,000 x 9% = €27,000) + (€300,000 x 10% = €30,000) = €89,000.
Ø Tax for New Developments and Off-Plan PropertiesIf you buy a new development home or “off-plan” property you must pay VAT (IVA in Spanish). This is instead of the property transfer tax (I.P.T). The rate is currently 10%. You also pay a stamp duty fee on new developments and “off-plan” properties which is currently 1.5%.
Lawyers’ FeesThese are usually negotiable and vary depending on the sales price of the property. Lawyers’ fees usually range from 0.4% - 1% of the agreed sales price. LVS works with the most respected and professional lawyers available in Marbella. If you want, we connect you with our contacts. You are always welcome to choose whichever lawyer you want. In relation to your home buy, your lawyer will perform due diligence. This includes but is not limited to;
- Ø checking that the property is free from charges in the Land Registry
- Ø checking if there are any planning charges to the property
- Ø checking that the property is up-to-date with all payments. Ie: payment of taxes, community fees and any other expenses
- Ø write any private sales contracts needed in relation to your purchase.
- Ø getting a Spanish Identity Number (N.I.E.).
- Ø opening a bank account
- Ø home insurance
- Ø setting up standing orders to pay bills
- Ø organise the change of property owners within the Authorities
- Ø getting electricity and water supply contracts.
Notary and Land Registry fees.You will also have to pay Notary and Land Registry fees. Depending on the property price and the length of the deed these fees can range from about €500 to as much as €3,000.
What to do next?Please contact us: (+34) 952 77 44 33 or email us here
We look forward to helping you find your dream home.
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As someone who has had generally bad experiences with Estate Agents in Marbella and who hasn’t been shy about saying so, I would like to recognise the superb job LVS did for me in selling our Villa recently.
I chose LVS because of the people who work there, I’d like to name David Honeyman in particular as the most knowledgeable and reassuring individual, his meticulous attention to detail combined with the excellent marketing and constant feedback were a pleasant surprise and exceeded my expectations in every way.
All I would like to say to LVS is thanks for doing the job, keep up the good work and I hope this review brings more fortunate buyers and sellers to your door.”
Carin is never pushy and never oversells. Still, she is firm in her advice. Her property knowledge is great as well. Carin also responds to any questions or concerns quickly.
I find that Carin genuinely believes that the most important thing is that we find the right property for us. She genuinely puts me as the buyer first. I value that so much in an Agent.
I can highly recommend Carin as your preferred and trusted agent in the Marbella market.”