Costs and taxes for the purchase of properties in Tenerife.

– VAT (IGIC) – 7% of the cost of new housing.
– Transfer tax (ITP – impuesto de transmisiones patrimoniales) – 6,5% of the cost of housing, “second hand”.
– Tax on registration of legal acts (actos jurídicos documentados AJD) – 0,5-1% of the cost of housing.
– Notary fees (Notario) – 0,5-0,75% of the cost of housing (in the case of registration of the mortgage loan a little more).
– The costs of registration in the Register of Property of Spain Registro) 0,25% – the amount is determined by a special scale, depending on the value of the property (for example: the price of real estate from 50,000 to 100,000 Euros – Tax 250-300 Euro)
– Expenses for paperwork (Gestoría) – 0,5% – 600-700 €
– Check the records in the property registry – 18 €
– Cost estimation of dwelling – 210-280 €
– Bank fee for opening a mortgage – 1.5-2% of the loan amount.
– Gestión Escritura – 0.02% of the value of property (registration of the contract).
– Tax Plus Valía – the tax is levied by the municipality, and depends on the location, year of construction and the number of years of tenure the last owner.

Total:

Without Mortgages ≅ 7,2%

Mortgage ≅ 8,7%