Taxes and costs of property maintenance

In this section of the site we cover the expenses, that the buyer incurs upon purchasing real estate and arranging a mortgage loan, as well as the costs, associated with annual tax payments and monthly utility changes.

Upon execution of a transaction on sale and purchase of primary housing from the developer, the buyer covers the following expenses:

1. I.V.A.(Value added tax)- 10% from the cost of real estate.
2. A.J.D.(Stamp duty)- 1,5% from the cost of real estate.
3. Notario (Notarial charges)  0,2-0,5%, depending on the number of pages in the contract and the number of buyers.
4. Registro(Registration of the sale and purchase contract in the Property Register)-  0,2-0,5%, depending on the number of pages and the number of buyers.
5. Gestion(Legal drafting of a document)- 0,05% from the cost of real estate.

Upon execution of a transaction on sale and purchase of secondary housing , the buyer covers the following expenses:

1. I.T.P.( Tax on transfer of property) 8-10% from the cost of real estate, depending on the transaction amount.
2. Notario (Notarial charges)-  0,2-0,5% depending on the number of pages in the contract and the number of buyers.
3. Registro (Registration of the sale and purchase contract in the Property Register)-  0,2-0,5% depending on the number
4. of pages and the number of buyers.
5. Gestion(Legal drafting of a document) – 0,05% from the cost of real estate.

In case of purchasing land property or commercial real estate, the I.V.A. (Value added tax) amounts in 21%.

Upon the mortgage arrangements the buyer covers the following additional expenses:

1. Hacienta (Tax for the arrangement of mortgage) – 1,5% from the cost of mortgage.
2. Notario (Notarial expenses for the arrangement of mortgage) 0,2-0,5% from the cost of mortgage, depending on the
3. number of pages in the contract and the number of buyers.
4. Registro(Registration of mortgage in the Property Register) 0,2-0,5% from the cost of mortgage, depending on the number of pages and the number of buyers.
5. Gestion (Legal drafting of the documents for the arrangement of mortgage) – 0,05% from the cost of mortgage.

Thus, the total expenses, associated with the execution of the sale and purchase transaction and the arrangement of mortgage amounts in 8,5-13,5% from the cost of real estate.
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Approximate expenses, associated with the maintenance of real estate in Costa del Sol in Spain, will be presented through the example of apartments with 2 bedrooms with a total area of 200 k2 and a cost of 500.000 euro, located in a new residential estate on the first shoreline:

• Annual amount of real estate tax (I.B.I), calculated on the basis of cadastral cost of the estate –  1.200 euro per year;
• Annual charge, paid to the Town Hall for trash pickup (Tasa Basuro) – 100 euro per year;
• Payment for urban residency –  200-400 euro per year, depending on the provided services;
• Electricity bill – 0,25 euro for kW/h – about 150 euro per month;
• Water bill- 0,25-0,4 euro for a cubic meter – about 25 euro per month;
• Payment for the Internet connection and landline – about 45 euro per month.

Thus, the total annual expenses for the maintenance of an apartment, selected by way of example, make up around 5.000- 6.500 euro per year in case of permanent residence.