Spanish Mortgages: Your Path to Property Ownership in Spain
Discover the allure of owning property in Spain. Whether you're looking for a vacation home or a permanent residence, understanding Spanish mortgages will help you navigate the purchasing process smoothly.
🏡 Taxes and Fees Breakdown: Purchaser (Buyer)
Property Transfer Tax (ITP) or VAT + AJD
- Resale Property:
- Tax: Impuesto de Transmisiones Patrimoniales (ITP)
- Rate: 6% - 10% of the purchase price (varies by region)
- New Build Property:
- VAT (IVA): 10% of the purchase price for residential property
- Stamp Duty (AJD): 0.5% - 1.5%, depending on the region
Notary Fees
Generally shared, but the buyer usually covers the majority.
Land Registry Fees
The buyer is responsible for registering the property.
Legal/Administrative Fees
Optional but common. Costs around €1,000–€2,000.
🏦 Taxes and Fees Paid by the Bank
Under the 2019 Spanish Mortgage Law (Ley 5/2019), most mortgage-related costs are the bank's responsibility:
- Stamp Duty on the Mortgage (AJD)
- Paid by: Bank
- Rate: 0.5% - 1.5% of the mortgage liability
- Notary Fees (Mortgage Deed)
- Paid by: Bank
- Land Registry Fees (Mortgage Registration)
- Paid by: Bank
- Gestoría Fees
- Related to mortgage paperwork, also paid by the bank
🔁 Summary of Payments
| Item | Paid by Buyer | Paid by Bank |
|---|---|---|
| Property Transfer Tax (ITP) | ✅ | ❌ |
| VAT (on new build) | ✅ | ❌ |
| Stamp Duty (on purchase) (AJD) | ✅ (if new build) | ❌ |
| Stamp Duty (on mortgage) (AJD) | ❌ | ✅ |
| Notary Fees (purchase deed) | ✅ | ❌ |
| Notary Fees (mortgage deed) | ❌ | ✅ |
| Land Registry (for property) | ✅ | ❌ |
| Land Registry (for mortgage) | ❌ | ✅ |
| Gestoría Fees (for mortgage) | ❌ | ✅ |
📞 Contact Us for More Information
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