Taxes and Costs for Property Buyers in Spain
When buying property in Andalusia, you should budget between 10% to 12% on top of the purchase price to cover taxes, notary fees, registry fees, and legal costs.
1. Purchase Taxes: ITP vs. IVA
Resale Properties: Subject to ITP (Impuesto sobre Transmisiones Patrimoniales). In Andalusia, this is a flat rate of 7% of the purchase price (or the fiscal value set by the Junta de Andalucía, whichever is higher).
New Build Properties: Subject to 10% IVA (VAT) plus 1.2% AJD (Stamp Duty / Actos Jurídicos Documentados).
2. Notary, Land Registry, and Legal Fees
Notary & Registry Fees: These are fixed by official scales and typically range between €1,000 to €2,000 in total.
Legal Fees: Independent lawyers charge approximately 1% of the purchase price (plus VAT) for comprehensive due diligence and handling completion.
3. Tax Obligations in Belgium
Under the Belgian-Spanish double tax treaty, you must declare your Spanish property to the Belgian tax authorities. You will be assigned a fictional rental value (Kadastraal Inkomen / Revenu Cadastral) which must be declared on your annual tax return.
While you are not taxed directly on this income in Belgium (due to exemption with progression), it may push your other Belgian income into a higher tax bracket.
Frequently Asked Questions
What is the annual property tax in Spain?
Owners must pay IBI (Impuesto sobre Bienes Inmuebles), which is a municipal tax based on the cadastral value, costing between €200 to €800 per year. Non-residents must also file a non-resident income tax return (Modelo 210).