TL: (+34) 602 944 847

Expenses and taxes to be paid when buying a property in 2021

By in Articles with 0 Comments

Mortgage loans are not the only major expense involved in buying a home. In fact, in order to formalise the deal and become the owner of the property, there are many expenses and taxes to be faced.

Between the valuation of the house, the notary, the registry and the corresponding taxes (VAT, ITP…), depending on the Autonomous Region, it is possible to save between 10% and 12% of the price of the property. All of these are compulsory expenses when buying and selling a property, although the “bill” to be paid will depend on whether it is a new or second-hand property and its amount. Let us summarise each component and its approximate price in 2021:



This is the cost to be taken into account when buying new and second-hand homes. The notary’s fees, called tariffs, are regulated by the state and they charge the same fees for the same services. In the case of a public deed of sale, the price ranges from 600 euros to 875 euros, depending on the price of the property. For example, for a flat of 100.000 euros, you will pay approximately 850 euros, and for a flat of 250.000 euros, you will have to pay approximately 1.000 euros. Although there is always the possibility of paying a little less, if we negotiate beforehand, they usually give a 10% discount.


The contract signed by the registered notary also costs money. The fees are also determined by regulations and depend directly on the price of the property, but are usually between 400 and 650 euros.


Buyers must also have an extra cushion to pay the tax, although the amount will depend on the price of the property and whether the property is second-hand or new.

In terms of the cost and tax of buying a new home, the most important tax is the value added tax (VAT), which will reach 10% in 2021. That is, for a house of 100,000 euros, this means 10,000 euros; for a house of 250,000 euros, this means 25,000 euros.

As far as public housing is concerned, the value added tax can be 4%, but varies according to the CCAA and the related types of social housing. A second tax must be added to the value added tax: statutory law (IAJD). The tax is still paid by the buyer and depends on each autonomous community, in Andalusia it is 1.5%.

On the other hand, for second hand properties, the most important tax is the “impuesto de transmisión patrimonial” (ITP). In this case, the amount depends on the notarial price and the percentage of the autonomous community where the property is located, in Andalusia it is 8%.


The only optional fees for home purchases are the gestoría fees, which are entities that clients can hire to handle tax settlements and other formalities. They are free professionals, so there is no specific fee in this case, and are usually contracted only when a mortgage is opened to obtain a property. Their approximate cost is 300 euros.


If the buyer intends to purchase a new or second-hand house through a mortgage, some additional costs must be added to the costs associated with the sale.

The appraisal is one of them, and consists of finding out the value of the property, so the bank will know what percentage of financing it can provide. Generally, the amount of the bank’s loan is equal to 80% of the purchase price or appraised value, although some banks will finance 90-100% of the purchase price (usually whichever is lower). In 2021, the appraisal costs between 250 and 600 euros, depending on the entity carrying out the appraisal, the type of property and its valuation. The appraisal is valid for 6 months from the date of issue.

Arrangement fee, depending on the agreement of the financial entity, the fee can be up to 2% of the capital loaned. This amount is deducted directly from the money you contribute to the mortgage. Some entities do not charge this commission.

IAJD (Impuesto de Actos Jurídicos Documentados), if and when a notarial document is signed that entails registration of the same, the tax must be paid, and then the economic amount must be registered in the registration form. Since November 2018 a decree came into force that obliges banks to pay this tax.

Notary fees, the notary fee is the cost incurred for the execution of the public deed of the mortgage loan. These expenses are assumed by the bank by law, as of June 2019.

Land Registry Fees, the cost of registering what has been signed before a notary in the land registry, also has a cost. Similarly, the fees are determined by regulations. This cost is borne by the entity from June 2019.

Gestoría Expenses. The bank that grants us the mortgage is the one who chooses a gestoría, normally from the bank itself, to carry out the administrative work and all the paperwork. This is also a cost that the bank assumes from June 2019. They will take care of the management and return to the client the money left over from what the bank determines to be paid as a provision of funds.  Once the mortgage is registered, you must hand over the invoice and the contract after paying the notary and registry fees that the bank does not bear.


Normally, the seller only has to pay the Plusvalia tax, which is a tax on the increase in value of urban land (IIVTNU), known as plusvalia municipal, a tax that is applied when a property is sold, donated or inherited, and is the responsibility of the local council. It is levied on how much the property has increased in value from the time of purchase to the time of sale, donation or inheritance.

About The Author
Israel Huertas Salazar

Inmobiliaria en Torrox. Ofrezco un trato personalizado y una contrastada experiencia como intermediario en la compraventa de inmuebles de todo tipo, oportunidades y grandes inversiones inmobiliarias, en diversas ubicaciones, tanto en Torrox, como Nerja, Frigiliana, Torre del Mar… y gran parte del territorio andaluz. Como broker inmobiliario, colaboro en red con todas las inmobiliarias y empresas promotoras y puedo conseguir la propiedad de su interés.

Leave a Reply

Your email address will not be published. Required fields are marked *