After the purchase
After the notarial deed of transfer has been drafted, you, as a
buyer,
still have a number of matters to arrange, such as:
-
Paying tax for acquiring the plot of land.
-
Applying for the description from the Land Bank of the municipality.
-
Possibly payment Plusvalia tax, a municipal tax that is levied on the presumed value increase of the land (the value of the total immovable property minus the value of the buildings erected on it) since the last transfer.
-
Requesting the description from the Land Registry Office.
-
Registering with the public utilities companies for the supply of electricity, water, waste collection and telephone connection.
-
Possibly applying to a local Owner’s Association.
The first two items can be handled by the civil-law notary. All the other things you have to arrange yourself, or we can arrange this for you.
Beneath an example of all costs when buying a property.
| Type | Unit | Amount | Payer | Receiver | |
|
Purchase price old (to determine gain tax) |
once | 150,000.00 | Seller | Seller old | |
|
|
|
|
|
|
| Purchase price | once | 190,000.00 | |||
| Estate agent's fee | 3% | 5,700.00 | Buyer | LPV | |
| Estate agent's fee | 3% | 5,700.00 | Seller | LPV | |
| Land acquisition tax | 6,5 % | 12,350.00 | Buyer | Taxes | |
| Notary | ca. | 500.00 | Buyer | Taxes | |
| Registration, registry | single | 250.00 | Buyer | Taxes | |
| Processing fee | single | 100.00 | Buyer | LPV | |
| Value appreciation tax * | single | 0.00 | Buyer | Taxes | |
| Capital gains tax** | 0.03 | 5,700.00 | Seller | Taxes | |
| on account payment | |||||
| Land registry registration | single | 300.00 | Buyer | LPV | |
| IGIC Buyer | 0.05 | 285.00 | Buyer | LPV | |
| IGIC Seller | 0.05 | 285.00 | Seller | LPV | |
| Capital gains tax** | 1,500.00 | Seller | Taxes | ||
| remaining difference | |||||
| Total | |||||
| Buyer pays complete amount of | 209,535.00 | ||||
| Seller receives net | 178,315.00 | ||||
| Complete amount of taxes | 20,600.00 | ||||
| LPV receives | 12,370.00 |
* Must inquire of value appreciation tax (plusvaila) before purchase.
** Only non-residents: 3 % to be paid within four weeks as from notarial act.
Tax declaration on 18 % of remaining difference of the entire capital gains has to be done within four months.
This estimate is only an example.