Purchase Expenses

If you allow an additional 9% - 10 % of the purchase price it should cover everything except the Plus Valia which is normally paid by the vendor.
 

IVA (VAT)
On the first registration of the Escritura [title deed] of a new property, the buyer has to pay IVA, which is 7% on apartments, houses and any garages purchased with the property [usually garage space below apartment], and 16% on land, locales [shop units] and garages purchased separately.

AJD (Stamp Duty)
When a property is purchased from a developer, promoter or habitual trader and IVA is charged the purchaser will also have to pay 1% AJD [stamp duty].

ITP (Transfer Tax)
Resale Property on its second and subsequent registrations attracts transfer tax called Impuesto de Transmisiones Patrimoniales [ ITP ] at 7%.

Plus Valia (Value Gain Tax)
Plus Valia is based on the increase in value of the property, since the last time the ownership changed, this tax is applied to the increase in value that the vendor has enjoyed and should be paid by the vendor. Normally the vendor pays this tax but as always everything is up for negotiation, some vendors do ask that the purchaser pays the Plus Valia as part of the deal. So make sure that the vendor is going to pay the Plus Valia, or if not find out exactly how much you will have to pay on his behalf before you make your offer. Your lawyer will be able to find out from the Ayuntamiento [ Town hall ] the amount payable.

Professional Costs and Expenses

• Abogado's [lawyer] fee - around 1%.
  
• Notario's fee - Depending on land and size of house, allow 0.2 - 0.3%
  
• Registry of property ownership - approx. 0.2%