What You Need to Know About Costs and Taxes When Buying in Costa del Sol

What You Need to Know About Costs and Taxes When Buying in Costa del Sol -

Marbella Real Estate News, Marbella News Buying a property in Costa del Sol can be an exciting investment opportunity, whether you are looking for a holiday home, a rental property, or a permanent residence.

However, it is important to understand the costs and taxes involved in the purchasing process to budget effectively and avoid surprises. Below, we provide a detailed overview of the main costs and taxes buyers should know when purchasing property in Costa del Sol. HOW MUCH TAX DO YOU PAY ON BUYING A PROPERTY IN SPAIN?

The amount of tax you pay when buying a property in Spain depends on whether the property is a new build or a resale. For resale properties, buyers are required to pay the Property Transfer Tax (ITP), which ranges from 7% to 10% of the purchase price, depending on the value and region. For new-build properties, buyers must pay Value Added Tax (VAT) at 10%, as well as Stamp Duty (AJD), which is typically 1.5% of the purchase price. It is essential to factor in these taxes as part of your overall budget when purchasing property in Spain. 1. PROPERTY PURCHASE PRICE