June 15, 2021

What taxes are paid when buying a house?



A person who goes to buy a home You shouldn’t just think about how you are going to pay for it. In addition to acquiring the mortgage and pay for commissions or appraisal of this, buying a house involves paying a series of taxes. The notary, house registration or VAT or ITP taxes are some of the fixed expenses to be able to
become a homeowner.

Between whats purchase and sale expenses we found the notary. These expenses are regulated by the Condition. The public deed of sale of a house has a cost that can range from 600 to 900 euros. rproperty registry it is not saved either. Registering the deeds has a cost that is regulated and that will depend on the property. It can cost between around 500 euros.

Another expense to take into account when buying a new home is the VAT. This is set at 10%, although in the Canary Islands is the Canarian Indirect General Tax, which sets it at 6%. As for public housing, it will depend on the autonomous community and the social type that it is, but in general it is 4%.

To the VAT we must add the tax of Documented Legal Acts (IAJD). Some regions have it exempt, while others have it around 1.5%.

What if it is not a new home? The most important tribute is the Tax on Patrimonial Transmissions (ITP). It is usually established between 6 and 10%, although it also depends on the community. For social housing or large families they usually have reduced rates.

What about the mortgage? Any buyer who applies for a mortgage must pay an appraisal to the bank. The price will depend on the entity and is valid for six months. The rest of the expenses such as the IAJD, notary and property registry must be in charge of the banks since the new Mortgage Law entered in June 2019.

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