Here is the table showing the costs of purchasing properties on the secondary and primary market in Comunidad Valenciana:
Cost |
Secondary market |
Primary market |
Property purchase tax |
10% (ITP - Property Transfer Tax) |
10% (VAT) |
Notary costs |
0.5% - 1% of the property value (on average around 800 €) |
0.5% - 1% of the property value |
Property registration costs |
0.5% - 1% of the property value (on average around 350 €) |
0.5% - 1% of the property value |
Tax on Legal Acts (AJD) |
Not applicable |
1.5% of the property value |
Lawyer's fees |
0.5% - 1.5% of the property value |
1% - 1.5% of the property value |
Lawyer's fees for purchasing property in Spain, including in Comunidad Valenciana, are usually between 0.5% and 1.5% of the property value, depending on the scope of services and the complexity of the transaction. The final cost may be higher if the case requires additional actions or legal consultations.
The scope of the lawyer's services includes:
1. Verification of the legal status of the property:
•Verification of the property registry (whether the property is free from encumbrances, such as mortgages, debts, or other obligations).
•Checking if the property complies with local planning regulations.
•Ensuring the property has all the necessary licenses and documents.
2. Negotiation and contract preparation:
•Preparation and review of the preliminary and final purchase-sale contract (Escritura).
•Negotiating terms with the owner or developer on behalf of the buyer.
3. Client representation before institutions:
•Obtaining the Spanish N.I.E. number (Foreigner Identification Number), which is necessary for purchasing property.
•Representing the client in public offices and banks, for example, when opening a bank account in Spain if needed.
4. Verification of payments and taxes:
•Ensuring that all taxes related to the property purchase have been paid (e.g., Tax on Legal Acts, VAT, or Property Transfer Tax).
•Coordinating the payment of the deposit and the final amount to the seller.
5. Property registration:
•Registering the property in the land registry, confirming the transfer of ownership to the new owner.
•Ensuring all utilities and bills are transferred to the new owner.
6. Legal and tax advice:
•The lawyer also advises on matters related to the future use of the property, rentals, and potential tax obligations that may arise in the future.
Is a lawyer necessary?
Formally, a lawyer is not required for purchasing property in Spain, but it is strongly recommended, especially for foreigners. Property purchases involve numerous regulations and formalities, and knowledge of local law is key to avoiding future problems.
A lawyer ensures the transaction is secure, making sure the property is free from legal defects and that all procedures comply with regulations. It's also important to consider that buying property in another country comes with additional challenges, such as language, local tax regulations, or cultural differences, which a lawyer can help to understand and resolve.