When buying a property in Spain, there are a number of legal and financial aspects to consider. Among them, notary fees and associated taxes are fundamental. In our blog we will explain in detail the notary fees, the different types of Tax on Patrimonial Transmissions and Documented Legal Acts (ITP and AJD) in Spain, as well as the importance of using a notary during this process.
Notary Fees in Spain
Notary fees are costs associated with the intervention of a notary in the formalization of legal documents, such as public deeds, contracts and other legal acts. In the case of buying a property in Spain, notary fees are an important part of the total expenses.
Cost of Notary Fees in Spain
Notary fees vary according to different factors, such as the value of the property and the complexity of the process. In general, they are regulated by tariffs set by the Notary Association corresponding to each region. These fees are calculated based on the price of the property and can range from 0.1% to 2% of the value declared in the public deed. In addition to the notary fees, other expenses must also be considered, such as taxes and registration costs at the Land Registry.
Taxes on Patrimonial Transmissions and Documented Legal Acts (ITP)
In Spain, when acquiring a property, taxes must also be paid. One of the most relevant is the Tax on Patrimonial Transmissions (ITP) or the Value Added Tax (VAT), depending on whether it is a new or second-hand property purchase. In addition, in some autonomous communities, such as Catalonia or Andalusia, the Documented Legal Acts tax (AJD) is applied, which is levied on the formalization of notarial documents.
Why you should call a Notary
Going to a notary during the purchase of a property is crucial for several reasons. First, the notary acts as a guarantor of the legality and legal security of the process. He or she verifies the validity of the documents, ensuring that they are correctly drafted and that they reflect the agreements between the parties. In addition, the notary has the function of impartially advising both sides, protecting their interests and guaranteeing an equitable and transparent agreement. Finally, the notary is in charge of the registration of the property in the Land Registry, which provides legal certainty and protection against possible legal conflicts in the future.
In conclusion, when buying a property in Spain, it is essential to take into account notary fees, applicable taxes and the importance of using a notary. These professionals play a crucial role in the process, guaranteeing legality, transparency and legal security in the real estate transaction.