Every year Scandinavian Management assist and council several hundreds house buyers on Costa Blanca. We have a tight knit cooperation with well-known estate brokers in the area, banks and insurance companies.
When purchasing directly from the constructor you will pay, beyond the purchase price, 10% VAT to the constructor. Observe that if a garage is part of the purchase the VAT is 10 % for this as well. If you purchase a garage separately, the VAT will be 21%.
Other costs include notary, cadastral and stamp tax* 1,5 %.
Plus-Valia is a Spanish tax and can be compared to a sort of capital gains tax to the municipal (It is the lands value increase from buy- to sale, which is taxed). This tax is to be paid by the seller by law.
When buying a second-hand property, the buyer is required by Spanish law to pay 3% of the purchase price directly to the Spanish tax authorities (as a deposit for the seller’s capital gains tax). If this is not done, the buyer will be responsible for the seller’s capital income tax against the Spanish tax authorities. This does not apply if the seller is a Spanish citizen or PERSON who has a taxable domicile in Spain.
Costs of title deed on a property bought in second hand.
Notary cost, property register and 10% in stamp duty *.
* The information relates to the Costa Blanca, the state of Valencian Community