VIP Finance is the financial side of VIP Almeria. We act not just as a mortgage broker, but also as your financial advisor in the world of Spanish investment property.

At VIP Finance, we work with leading banks such as Barclays, Bancaja and U.C.I in Spain to provide mortgage and finance options for our clients. Unlike other property companies we have no binding affiliations to any particular bank and so can always promise to bring you the best possible finance terms.

For more information on Spanish mortgages please refer to our Mortgage FAQ

or click the button for Bancaja's mortgage calculator

Download the Bancaja Comprehensive Mortgage Guide

Costs Involved In Purchasing a Spanish Investment Property

As a guide, you should budget between 10% and 12% of the purchase price to cover all the taxes and fees for a Spanish property purchase.

Notary Fees These vary depending o­n the circumstances and length of documents being notarised. You should ask about them before the day of signing as you will be expected to pay in full then.

Land Registry Fees (Gastos de Inscripción) These vary according to the locality, type and value of the property. They are not strictly taxes but fees charged by the Land Registry to inscribe your title.

Taxes

Impuesto Sobre Transmisiones Patrimoniales (ITP)

This is a transfer tax payable when you purchase land, a house, an apartment or a building plot from a private owner. It is calculated at the rate of 7% of the declared value of the property as expressed in the Escritura de Compraventa (Title Deed).

Severe penalties are payable in respect of under declarations which, in addition, can lead to Capital Gains Tax headaches at a later date, as the declared value o­n your purchase is the base line used by authorities when assessing the capital gain you make upon the eventual sale of the property.

Impuesto Sobre El Valor Añadido (IVA)

This is the Spanish equivalent of VAT. It is charged at the rate of 7% o­n the purchase price of all property with the exception of commercial property and plots.

AJD (Stamp Duty)

Stamp duty is payable by the purchaser at 1% of the purchase price o­n new property.

Municipal Plusvalía

A local tax paid o­n the increase in the value of the property from the last transaction. Normally payable by the vendor but it may be stipulated that the buyer pays. Who pays this will be discussed in the negotiations and in consultation with your lawyer.

Disbursements

In addition to the above costs, there will be other payments made o­n your behalf by your lawyer such as the Land Registry search fee, bank charges etc.

Vision Investment Property Almeria
Spain +34 902 887 254  or +34 617587903  Ireland +353 1 5241926
United Kingdom +44 2070433590 Fax: +34 950950231
Email: info@vipalmeria.com