In general you should calculate to pay approx. 11% on top of the price to cover costs, fees and taxes.
Your lawyer will explain in details what you have to pay and to whom. The lawyer normally asks for an amount to cover all the fees and taxes, and will repay you what is left after the transaction.
In order to get a mortgage the bank will need an independent valuation of the property. The cost of the valuation is payable wether the deal goes through or not. Spanish: Tasación
Land Registry / Property Registry
Your lawyer will request the legal history of the property being considered for purchase, and for that there is a small charge. In the country area many properties have not been in the land registry, as a lot of land has been with the same family for several generations. Once the purchase is finalised and the title deed is changed to register the new owner this will be registered with the Land registry. Spanish: Registro de la Propiedad
The Notary is the person who legally confirms the deed of sale and the mortgage deed as authentic and certifies the transaction. If the purchase agreement is not signed in front of the Notary, it can not be legally registered. Spanish: Notarío
The administration fees are charged by the financing entity.
The normal rate is aproxx 1% of the price of the property (without taxes). Some lawyers charge a fixed amount for their services.
All fees from the financing of your property must be clearly explained and provided in writing. It must be clear to you what the down payment and the monthly payments are.
Taxes Value Added Tax (IVA)
New developments or a newly built house has IVA payable of approximately 8% of the value shown on the Title Deed (Spanish: Escritura). Stamp Duty (AJD) at 0.5% is also payable on new properties.
In 2011 and 2012 the 8% tax is reduced to 4% on sales of all new properties.
Resale properties has a 7% or 8% tax (ITP) of the value shown on the Title Deed (Spanish: Escritura). 7% of the amount up to € 400,000 and then 8% of the rest.
This tax is 1.5% - 2% of the amount of the mortgage. (0.5% of the mortgage guarantee value). The seller has to pay the capital gain tax (Spanish: Plusvalía) unless otherwise agreed by the parties. In some cases the tax authorities have declined the purchase price declared on the title deed (Spanish: Escritura) as it has been found unrealistic low. The tax authorities then have the right to set the price to a level they find is realistic. This can occur when the seller tries to underdeclare the sales price to reduce the capital gains tax payable.