The expenses of bulling/selling are independent of the expenses related to the required financing, although since these have to be satisfied together, certain confusion may arise regarding the amounts and percentages which they represent. They are two different operations, which could be carried out independently from one another.

In VIVALIA Property Consulting we will be pleased to analyse your situation and advise you on the matter.

Following are the expenses which apply to the transaction, as well as their distribution between the contractors. However, any agreement for the distribution of the expenses between the participants will be valid, considering that, in the case that an expressed agreement does not exist, what is established within the law will prevail. Please note the information provided has only an informative character and can undergo modifications at any time.

EXPENSES FOR THE BUYER

Generally, it is considered that the additional expenses that are generated in the operation of purchasing a property can be up to a 10% of the value of the property.

Agency expenses. The participation of administrative managers is optional as long as a mortgage loan has not been requested, in which case the banking institution will demand that one in common agreement is designated. The work of the agency is central in the transaction of the deeds (of transaction, mortgage, subrogation, etc.), the satisfaction of taxes and the inscription in the Registry of the Property. The cost of the service varies approximately between 200 and 300 euros by operation, depending on the contracted dealings and the value of the property, and it is subject to a 18% VAT.

Applied taxes.

• VAT. (IVA in Spanish) The first transmission of property ownership is subject to a tax of 8% on the notarised value, for IVA (4% if the house is of official protection -VPO-). The used property (second transmission and successive) do not pay by VAT but by ITP. In the case of independently bought garage spaces, the applied VAT is 18%. Likewise, the agency, notary and Registry's fees also have a 18% VAT.
  
  
• ITP. The Tax of Patrimonial Transmissions is applied in the transaction of used property to a type of 7% on the notarised value. The type of the tax varies depending on the region in which the transaction is taking place.
  
  
• IAJD. In purchases of a new property, it is necessary to pay a 0.5% for Tax of Actos Jurídicos Documentados (IAJD). The tax is applied doubly, both to the deed of sale and to the mortgage deed (in this last case, it applies to the total amount financed: capital, interests, costs and expenses). In the case of second hand property, it will only aply to the mortgage deed, if there is one, but not the buying deed.

Notary expenses. Before being able to register the house in the Registry of Property, it is necessary that a notary certifies the transaction by means of the deed. The fees applied by the notaries are regulated by law and are divided in sections that are added according to the value of the house:

As it was aforementioned, the total final amount is subject to a 18% VAT. Also the notary's fee is applied to the mortgage loan deed, if there is one, although reducing the fee by 25%, and without applying VAT.

Registry expenses. The fees applied by the registrar of the property for its inscription are fixed by law in a similar way as those of the notaries, and they depend on the value notarised according to the following table of cumulative values:

As it was previously noted, the total amount is subject to a 18% VAT. If a mortgage loan had been transacted, the banking institution will demand that this also is registered, hence the reason why it would be necessary to apply the corresponding registry fee, although reducing the fee by 25%, and without applying the VAT.

Additionally, if the buyer asks for a banking mortgage loan to pay the purchase of the property, the derived expenses must be considered, these will normally correspond to: request of a dominion certificate and burdens written by the Registry; appraisal of the property; loan opening commision in some cases; hiring of a fire insurance (obligatory by law) with the same banking organisation or another insuring company.

For your convenience we have put together a BUYER'S GUIDE. 
In VIVALIA Property Consultants, we are always delighted to help.

CHARGES AT THE EXPENSE OF THE SELLER

As a seller of a property, unless previously agreed differently with the buying party, the law foresees for you a series of expenses that will arise during the process of sale. The following expenses may arise:

Notary's expenses. corresponding to the original deed of sale. Normally, and although the law establishes that this cost is in charge of the seller, the buyer usually agrees to its payment. This cost is calculated applying a fee on the notarised price of the house.

Tax on the Increase of Value of Lands of Urban Nature, known as "Plusvalía". It is a municipal tax that must be paid by the seller of the property, unless both parties agree to the contrary, and it is based on the registered value of the property and the years passed from the last transmission. On this increase a fee is applied, that is fixed by each City council within maximum and minimum boundaries fixed by law. In case of non-payment the Municipal Administration can only carry out actions against the seller of the property, even if payment by the buyer had been previously agreed, all of this regardless of the damages the seller may later demand as compensation from the buyer. It is a tax whose payment can be carried out by the party who had agreed to it. Proof of payment must be produced at the City council within 30 days of signing the deeds.

Expenses of previous loans cancellation, the seller is forced to pay all the burdens that the house may have acquired prior to the transaction, both economic and registry-related, unless it is agreed between buyer and seller that certain burdens will be satisfied by the buyer, such as the case when the buyer is subrogated in a mortgage loan that burdens the property. It must be emphasised that the seller of the property must be up-to-date in the payment of the Tax on Immovable Goods (IBI); in case of an existing debt, this is transmitted automatically to the buyer as its new proprietor. Also, the law establishes that the IBI corresponding to an specific year has to be satisfied by whomever was the property owner as of the 1st of January of that same year.

For your convenience we have collaborated and included a SELLER'S GUIDE. 
In VIVALIA Property Consultants, we are always delighted to help you.