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Expenses of buying or selling a home in Catalonia

in Tax

Consider buying or selling a home is not as simple as it may seem. Behind the price that is seen in the window displays of a real estate agency are a series of expenses that end up increasing the price to pay of the buyers and reducing the money to receive for the sellers.
For the buyer, the extra cost that taxes and additional expenses may have on the price of the home usually represents 10% of the price.

While for the seller it is not usually so expensive, these expenses should not be disregarded, because they can mean a future payment that is better to have planned.

If you are thinking of buying or selling a home in Catalonia, this article will help you to know all the expenses involved and get an idea of what the final price will be.

Expenses charged to the seller in a home purchased in Catalonia

The expenses and taxes that the person who sells the house must assume are:

  • The tax on the increase of the value of the land (IIVTNU), in all cases (if it is not agreed otherwise, it is always responsibility of the seller).
  • The capital gains – if any – in the Personal Income Tax (IRPF) in respect on the time of purchase.
  • The derivatives of the intervention of a real estate agent, if it is the case.
  • The derivatives of obtaining the documents that must be delivered to the buyer.

Remember that there are tax benefits such as the sale of primary residence for people over 65 years old.

Expenses charged to the buyer in a home purchase in Catalonia

The expenses that the buyer must face are:

  • The purchase price of the house.
  • In a new construction, those attributable to the deed of new works and horizontal division of the property.
  • VAT (10% of the cost of housing if it is a new construction) or property transfer tax (ITP) if it is a second-hand dwelling.
  • The fees of the notary before whom the public deed of sales is granted.
  • The expenses of the inscription in the Property Register and the expenses of said management, if it is done by a third party.
  • The derivatives of the deed of the mortgage loan to finance the purchase, if it is the case.
  • If a mortgage loan is requested, the opening costs of the loan.
  • The costs of registration and/or change the owner of the water, electricity, gas, etc. Services.

How to reduce expenses in a house sale in Catalonia

It is quite complicated to reduce expenses in the purchase and sale of a home. One of the few points where you have flexibility is when choosing a mortgage. Compare the conditions offered by different banks and try to pay as much as you can at the start. It also ends up being cheaper to buy second-hand house than a new one.

Keep in mind that you will need the help of a tax consultant like GM Tax to plan all expenses and deal with them without leaving anything. We will study your case in detail so that everything is in order and you do not overpay. If you have any questions, contact us!

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