ACQISITION COSTS
Acquiring a house involves various costs. Engel Ibiza Restyling takes a look at the additional costs, with indications to indicate what should be taken into account, based on Spanish rates.
How high exactly are the purchase costs of a house in Ibiza? To answer this question, we take the example of the purchase of the villa in this case, with a purchase price of € 1,200,000.00.
When purchasing real estate in Spain, there are various costs involved in addition to the purchase price. Some important aspects include transfer tax (ITP), notary fees, registration fees, and possibly real estate agent fees. Below we have listed all the important costs.
1. Transfer tax
In Spain, whether you pay transfer tax and how high that percentage is depends entirely on the type of purchase or sale. As a buyer you pay the costs. Whether it concerns new construction, resale or a plot, your IVA (Spanish sales tax) or ITP (Impuesto sobre Transmisones Patrimoiales) is paid. For example, you pay 8 percent ITP on the first € 400,000.00 for an existing home.\​
2. Notary costs and registration costs
The transfer deed for a property in Ibiza is signed by a public notary. This is then registered in the land registry of Ibiza, the Registo de la Propiedad. Take into account 1.5 to 3% costs, based on the purchase price of the home. For this house of € 1,200,000.00, this amounts to € 18,000.00 to € 36,000.00.
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3. Attorney's fees
To buy a home in Spain (and therefore in Ibiza), you need to hire a lawyer. This will help with the purchasing process and smooth out the legal bumps. Please take into account a 1% fee, based on the purchase price. This property involves an amount of € 1,200,000
€12,000.00.
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4. Mortgage costs
When you take out a mortgage to finance a home, this usually entails costs. In this case, a fee of 3% will be charged for taking out the mortgage.
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5. Deposit for non-residents
Are you considering buying a home in Ibiza as a non-resident of Spain? In that case, you must deduct 3% from the purchase price and pay this amount to the Spanish tax office within 30 days of the transaction. This serves as a kind of guarantee that you will pay the tax due