Capital transfer tax: Applicable to the purchase of second-hand dwellings. In general term, this amounts to 8% of the sale price of the dwelling, although this percentage may vary depending on the Autonomous Community where the house is located. The purchaser is liable to pay this. It is a state tax and has to be paid at the time of the sale. If the dwelling is a new construction, this tax does not need to be paid. Rather, it is necessary to pay Value Added Tax or V.A.T., which is set at 7% of the property’s sale value. This tax, also imposed by the state, also must be paid by the purchaser.
Capital gains: This is also known as the Tax on the Increase in value of land of an urban nature. It is a municipal council tax. Its amount is set on the basis of a percentage applicable to the difference between the property sale value (that is to say, our purchase), and the sale value of the previous transfer. The vendor has to pay this by law. He is the party who benefits from this theoretical monetary increase, although it is normal for it to be agreed that the purchaser is to pay this. It is necessary to pay it in a period of 30 days following the sale.
Notary costs: These are the “fees” that the state attesting official applies for the work he does on the deed of sale. These “fees” are called notary charges, and are the same for all the notaries belonging to the same institute of notaries for the same circumstances. The costs of the original deed, that is the one that remains in the possession of the notary in his files or public records, should be paid by the vendor. The first and successive copies issued should be paid for by the purchaser, although it is usual for this also to be negotiated between the parties to the sale. These costs must be paid at the time of the execution of the deed.
Property register costs: These are the registry charges that we must pay for recording the sale in the property register, since any registry activity involves work for the Property Registrar. In the same way as with notaries, these registration charges are set by law. Hence they are the same for all the registrars of the same territorial area for the same circumstances. These costs must be met by the purchaser at the time of registration.
Administrative costs: These are costs arising due to the “paperwork” that is entrusted to the Administrative Specialists. The payment for this is agreed between the parties, although it is usual for the purchaser to meet this cost.
fuente: COAPI Madrid