Closing Taxes

Buyer’s closing Taxes and cost

An important consideration is what other costs are envolved other than the parchase price?

There are a range of taxes that are the buyers responsibility.

You need to allow 10% of the purchase pirce extra on top to cover your closing cost and taxes. The following is a simplified schedule of the costs:

7% Tranfer Tax or I.T.P (Government Purchase Tax), 16% for land.

1% Notary Fees (approx.) (Officiation Cost)

1% Land Registry Fees (Stamp Duty)

1% Lawyer’s fees (some lawyers only charge 0.5% and some charge a flat fee).

If you are using a Spanish mortgage to finance part of the purchase there will be Notary and Land Registry fees for inscribing the Mortgage contract. Allow approx. 3% of the mortgage amount, you can sometimes add this amount to the principle borrowed as is the norm for loans taken out in the UK. Please check with your loan provider.