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.