He will also be able to give you detailed advice about the taxes and rates levied on property transactions and homeowners, which are briefly summarised below:
Fees and taxes
Generally speaking, the costs attached to the purchase of a property are around 10% of the purchase price and 12% if you are using a mortgage.
- Notary & Registry Fees:
Usually paid for by the buyer and related to the purchase price.
- Purchase Taxes:
In the case of newly completed homes the applicable tax is VAT (Value Added Tax), which is levied at 10% for homes and 21% for storage rooms and parking spaces, in the case of being bought separately from a house or apartment. Furthermore there is a stamp duty of 1.5%.
In the case you purchase an existing home from another private owner, the relevant Transfer Tax stands at 8% of the purchase price (up to 400,000.00 € purchase Price, then 9% up to 700,000.00 € and 10% above the latter amount). The 1.5% Stamp Duty will then NOT be due.
If you decide to use a mortgage, please bear in mind that it will be contained in a separate deed. This means that once again you will have to pay notary and land registry fees, as well as 1,5% Stamp Duty on an amount equivalent to the sum of the money borrowed, plus its interests plus a quotation for fees and expenses for a possible Court enforcement of the Mortgage.
- Legal Fees:
These vary between 1% and 2% of the purchase price and include the full set of legal services, from the moment you find the home to the point at which title is transferred into your name.