Costs of buying a home in the Alava, Biscay, Gipuzkoa or Navarre

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This is the most important question, and the one that fewer people ask themselves when they see the property they like. In foralista we tell you about it so that you can buy with knowledge of the costs that you are going to face in each of the foral territories:

In general terms, they are distributed as follows:

  • Taxes (Buyer)
  • Notary's office (Buyer)
  • Land Registry (Buyer)
  • Administration costs (in case of applying for a mortgage) (Buyer)
  • Town tax for incremented value (Seller)

Taxes

Álava, Bizkaia y Gipuzkoa

In Álava, the most important parameter is whether it is a new or second-hand property.

New housing

If it is a new home, i.e. purchased directly from the developer. The tax is 10% VAT, for every 50.000€ you pay an additional 5.000€ that the seller will pay to the tax authorities.

Only in the case that the property is a V.P.O. of social character the VAT is a reduced rate of 4%.

If the property purchased is a business premises, office or industrial building, the VAT is 21%.

To this VAT add the AJD (Impuesto de actos jurídicos documentados) which is 0.5% of the value of the property, that is to say 250€ for every 50.000€.

Second hand property

In a purchase of a second hand property, the ITP (Impuesto de Transmisiones Patrimoniales) is applied, which is by default 4% for all types of properties with a maximum of 2 parking spaces. Any other type of property costs 7%.

However, there is a reduced rate of 2.5% for sale and purchase with 4 conditions:

  • The property must be the buyer's habitual residence and must have been lived in for at least 3 consecutive years.
  • The constructed surface area must not exceed 120 m2 built or 96 m2 usable.
  • If it is a single-family house, the surface area of the land must not exceed 300 m2.
  • The buyer must not have previously applied the reduced rate of 2.5%.

Navarra

In Navarre the taxes change quite a lot, although obviously, the most important parameter is still whether it is a new or second hand property.

New housing

If it is a new home, i.e. one purchased directly from the developer. The tax is 10% VAT, and for every 50,000 euros you pay an additional 5,000 euros that the seller pays to the tax authorities.

Only in the case that the property is a V.P.O. of social character the VAT is a reduced rate of 4%.

If the property purchased is a business premises, office or industrial building, the VAT is 21%.

To this VAT we add the AJD (Impuesto de actos jurídicos documentados) which is 0.5% of the value of the property, that is to say 250€ for every 50.000€.

Second hand property

In a second hand property purchase, the ITP (Impuesto de Transmisiones Patrimoniales) is applied, which is by default 6% for all types of properties.

However, there is a reduced rate of 5% for sale and purchase with some conditions:

  • There is a reduced rate for young people buying their first home.
  • The taxable base of the tax does not exceed 180.304 euros. The amount exceeding this figure will be taxed at 6%.
  • The family unit must consist of two or more children.
  • The property to be purchased must be the main residence of the family unit.
  • No member of the family unit may own more than 25% of another home in the Autonomous Community of Navarre.

Notary's office

The public deed is executed at the notary's office, which gives this operation extrajudicial public faith and guarantees its legal security. The cost of the formalities is the smallest part.

Generally in the 4 foral territories, the amount of the notary's fees is fixed by regulation. It generally ranges between 600 and 1,200 euros and varies depending on the number of copies to be issued, the length of the deed and, above all, the price of the property.

Property Registration

Registering the property has a variable cost for which a provision for expenses has to be made, generally the notary's office offers to perform this service.

The fees are fixed by law and their cost depends on the price of the property. In general, it ranges between 400 and 650 euros.

Management fees (in case of mortgage)

This is an optional expense but banks usually charge between 300 and 500 €. It practically depends on your bargaining power and your needs.

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