Costs of the Purchase
Transfer tax (ITP) 8%, 9% or 10% according to sections - by the buyer on the purchase of any property (villas, apartments, land, commercial premises, garages), provided that the seller is not a promoter or that your business does not consist of regular promotion or resale property.
If the "minimum tax value" of property, as set by the Government of Andalusia, is greater than the price, then applies the minimum tax value: 8% applies to the first section up to 400,000 €, 9% is applied on the stretch between 400,000 € and 700,000 €, 10% is applied to the section that exceeds the amount of 700,000 €.
Example: For a property of 1,250,000 €
Up to 400,000 € - 8% = € 32,000
Over 300,000 € (400,000 € to 700,000 €) - 9% = € 27,000
Excess € 550,000 (700,000 € to 1,250,000 €) - 10% = € 55,000
Total € 114,000
VAT 10% and STAMP DUTY to 1.5%- For any VILLA, APARTMENT or GARAGE annexed to an apartment, where the vendor is a promoter or habitual trader of NEW PROPERTIES (first transmission).
VAT 21% and STAMP DUTY to 1.5% for PARCELS OF LAND, COMMERCIAL, or garages provided that the vendor is a promoter and / or habitual trader of such properties. This covers virtually all newly urbanized PARCEL and NEWLY BUILT COMMERCIAL.
The Municipal Capital Gains
Is a local tax calculated on the increased assessed value of the land since the last purchase (the Seller) of property to the current sale.
By nature, this tax rests with the seller who is responsible for liquidating, unless otherwise has been negotiated. They must consider several factors when calculating the amount to pay, especially the period of ownership of the property, as the settlement amount can vary significantly and should be verified before proceeding with the sale.
Property Tax (IBI)
Taxes are paid annually and the tax base is calculated on the assessed value assigned by the Board of Revenue. The assessed value is calculated considering the land value of the parcel plus the value of the building, according to the type, location and use. From this value, each local council decides the percentage to be applied to these local taxes.
Garbage Collection and Water Supply
The garbage collection rate is set by the City Council according to each property and is paid annually. For an apartment in Sotogrande the garbage collection rate is approximately 156,24 € (2018) per year and the rate of a villa is approximately 300,44€ (2018) per year. The payment of these fees costs can be made directly at City Hall or through direct debit.
Water consumption is calculated by a meter in cubic meters and is payable quarterly.
Expenditure on Community
Overall, the homeowners association is a legal entity composed exclusively of owners of apartments in a building or residential villas. The purpose of the "Community" is, as owner, maintain and care for the community elements of the building or development in question, and each owner is obligated to help pay for the cost of maintaining the common areas and services, prorated. Generally, the percentage share of each owner is calculated according to the size of the apartment or plot, divided by the total area of all the apartments or plots.
The annual budget for community expenses is presented in the General Meeting of the Owners and they, or their authorized representatives, must approve the budget with the majority of the votes of members present at that meeting. Costs can vary considerably according to the services provided and generally include wages and social security of the concierge if any, maintenance of communal garden, lift maintenance, general repairs, garbage collection, water for irrigation of community gardens, electricity consumption for lighting of common areas, insurance, security and administration costs. The president of the community must, by law, own a property within the same complex and is chosen by vote of the co-owners.