Taxes and additional costs
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.
Without Mortgages ≅ 7,2%
Mortgage ≅ 8,7%