Tax

It’s 10% of the price paid in the Valencian Community other areas it is 8%, obviously you have your solicitor and notary fees as well.

As said it’s 10% of the actual purchase price

if you allow 15% in your budgeting that should be enough to cover all costs unless something exceptional comes along.

Thank you for your quick response. 

Have a nice new year 

Thank you for your quick reply. 

Hope you have a nice new year 

Hi

The tax paid on house purchase is, as some of the other replies stated, 8% or 10% depending on which area the house is located.

However, the tax is not based on the sale price; it is based on the assessed value of the property as stated in the original Escritura.

The Escritura is Spanish for Title Deeds and is a very important document in the Spanish property conveyancing process. It is a legal document that contains the following: 

• Former owners personal details 
• Buyers personal details 
• The legal representatives who are involved details 
• Land registry details 
• Translators details 
• Property’s address 
• Property description, which is usually obtained in the form of nota simple
• The property price 
• Cadastral price 
• Property taxes 
• Mortgage details 
• A breakdown of how the price is being paid 
• Miscellanea, including; 

Certificate of the Community of Owners. This states that the property is debt free and up to date with all its communal payments. 

Utility bills 

Cheques 

Council tax bills 

Copy of the license of first occupation 

Once the title deed is signed it is submitted to the land registry so the ownership details can be changed. In Spain, Title Deeds are signed by the Notary and the buyer / seller (or Power of Attorney if applicable). The Notary then keeps the document on file. 

If you are a non-resident vendor of a Spanish property, you must pay the local tax authority 3% of the property price when you are selling. The purpose of retaining this amount is to pay for any outstanding taxes or other fees which the vendor might be liable to pay. 

The Notary is responsible for ensuring that the purchase price of the property is split so the 3% retention fee goes to the applicable tax authority. 

If the vendor can prove that all of his taxes are paid up to date, then they will be returned the 3%. If the final amount to be paid is lower than the 3% that has been retained, the remainder will be returned to the vendor. 

Regards

Hugh Williams - Villamartin

So basically, the first two replies were incorrect and/or misleading or just  incorrect opinions ?  and the 5th reply was closer to the truth ?. Really shows how legal advice rather than online speculation can save you money/hassle/heartache

Tony Smith; it would be better for you to add in something helpful rather than sniping from the wings!

Please note the question marks (meaning " a question or questioning of") after each of my statements, apologies, if English is not your first language.

I can only speak about my experience of buying in Spain and my reply was based on the tax I paid which was 10% of the actual price that I bought the house for plus solicitor and notary fees. I would have saved a lot of money if I had only paid tax on the original Escritura value as stated in the other post.