Buying a property in Spain with a Spanish mortgage is essentially considered as two separate transactions as far as taxes, notary and other related fees.

• The purchase of a property (escritura de compraventa) is subject to the following taxes and fees:VAT at 7% plus a 1% Stamp Duty for NEW builds OR
• Property Transfer Tax (ITP) of 7% for resale properties (this may vary by autonomous region)
  
  

The relevant tax will be calculated on the DECLARED price of the property which may or may not vary from the agreed purchase price.
Notary and Land Registry fees – which vary depending on the Notary and the Land Registry but will be around €580 and €370 respectively for a declared purchase price of €180,000.

When you obtain a mortgage loan and buy a house , Spanish Law establishes a series of compulsory costs to ensure there are no problems when on completion of the sale.

Don't be caught out - find out about them beforehand! >>

The average price per m2 of a house in Spain is 1,458 euros but the price of property in Spain varies according to the region. >>

Spain's economy is 70.9 percent free, according to our 2007 assessment, which makes it the world's 27th freest economy. Its overall score is 0.3 percentage point higher than last year, partially reflecting new methodological detail. Spain is ranked 16th out of 41 countries in the European region, and its overall score is slightly higher than the regional average. >>