Purchase costs

The main concern of most prospective property buyers is to know the total cost that their investment will involve. It is not enough to only consider the purchase price as there are also other costs involved (purchase tax - "IMT tax", Notary and Attorney fees, etc.)

WHAT ARE THE INITIAL COSTS INVOLVED?

The costs at the time of purchase are the following:

• IMT tax - Municipal Tax payable on transfer of ownership (purchase tax)
• Escritura (title transfer) fees and Stamp duty
• Property registration fee
• Attorney's fee

The ongoing or future costs involved are basically:

• IMI tax - Municipal tax paid anually on the property
• Inheritance tax

IMT TAX RATES: 

Purchase Price			Tax Calculation
Up to €106,875			Price x 1%
€106,875.01  to €146,500			(Price x 2%) - €1.069,00
€146,500.01 to €199,750			(Price x 5%) - €5.464,00
€199,750.01 to €333,000.00			(Price x 7%) - €9.459,00
€333,000.01 to €638,750.00			(Price x 8%) - €12.789,00
Greater than €638,750.00			Price x 6%
Below are some examples of the total fees you can expect to pay:

Example 1:
For a property priced at € 135.000,00 :

IMT Formula: (Price x 2%) - €1.069,00
IMT:  (€135.000,00 x 2%)  - €1.069,00€

         (€2.700,00) - €1.069,00

IMT Tax payable = €1.631,00

Costs payable:
Purchase Tax (IMT)     :  € 1.631,00
Notary Fee                   :  €    211,74
Stamp Duty                  :  € 1.080,00
Registration Fee           : €    125,00
Lawyer's Fee (approx. : € 1.350,00
Extras (approx.            : €    200,00

ESTIMATED TOTAL        : €4.597,74
% OF PRICE                  :         3.41 %