Once you have chosen your dream home in Spain, our main advice for you is be patient and take into account all additional costs you will have to pay for property transaction. Be patient since you will have to solve some bureaucratic issues first. Open bank account, get your identification number in Spain (NIE), be registered in Spanish tax authorities as tax payer and negotiate with banks in case you are asking for mortgage. All this takes time. What taxes and fees I have to pay as a purchaser? Depending on if you are buying new construction or secondhand home, main tax will be:
- 10% VATT, in case you purchase home of new construction
- In case your house is from secondhand property market, the tax to pay is a so-called Tax of Patrimonial Transmission, Impuesto sobre Transmisiones Patrimoniales (ITP). This one can be between 5% and 10%, depending on Spanish Autonomic Community where your house is located.