When we buying a home, there are several aspects to consider, such as the taxes we must pay. First, it’s important to know that the fees differ depending on whether we choose a newly built house or a second-hand one. In the case of newly built homes, it’s essential to be aware of the taxes and associated costs involved in the purchase in Spain, specifically in Málaga and Andalucía.
Before anything else, it’s important to clarify what is considered a newly built home. These are properties purchased from the developer once the construction or renovation is completed and for which a certificate of completion of work has been issued, which must be signed by the architect and the corresponding surveyor.
In Andalucía, the taxes that must be paid when purchasing a newly built home are the Value Added Tax (VAT) and the Stamp Duty (IAJD).
VAT is the most significant tax when buying a newly built home. This tax is applied directly to the sale price and is mandatory in all transactions involving new homes purchased directly from the developer or builder.
Regarding VAT, the usual rate applied is 10% of the registered price. However, for Officially Protected Housing (VPO) under special regime or public promotion, the rate is reduced to 4%.
On the other hand, the Stamp Duty (IAJD) is applied to public deeds that generate a right to be registered in the Property Registry, as occurs in the purchase of a new home. This tax covers the formalization of the deed of sale and the mortgage (if applicable).
In Andalucía, the current IAJD rate is 1.2%. You can find all the relevant information regarding IAJD on the website of the Junta de Andalucía.
Some of the main tax reductions available to buyers include:
- 0.3% for individuals under 35 years old.
- 0.3% for victims of domestic violence or terrorism.
- 0.1% for people with a disability equal to or greater than 33%.
It is important to note that the deadline for paying both VAT and IAJD is 30 days. If the taxes are not paid within the allowed timeframe, penalties ranging from €200 to €400 may be applied.
Additionally, although they are not technically taxes, it is important to consider the costs associated with the formalization of the purchase at the notary and the Property Registry. Notarial costs will depend on the value of the home and are regulated by law. Similarly, registration costs, referring to the fee for registering the property deed at the Property Registry, depend on the price of the home and are also regulated.
Lastly, it is important to keep in mind the Property Tax (IBI), which, although not paid at the time of purchase, is an annual tax that must be paid by the homeowner once the purchase is completed. The IBI is managed by each local council and depends on the cadastral value of the property. Moreover, if a mortgage is needed, you should also account for its associated costs.
With all this in mind, we recommend preparing a realistic budget that takes into account all these costs to avoid surprises. Don’t forget that at Salsa Inmobiliaria, we are here to help make your home purchase as smooth and successful as possible.
