Very briefly, first-hand home sales accrue VAT at 10% of the sale price. If the sale were of a second-hand home, the property transfer tax would accrue, which in the case of the Community of Madrid is adjusted to the following rates (6%, 4% and 2%), calculated on the price of the home:<\/p>\n
In general, the rate of 6 per 100 will be applied.<\/em><\/strong><\/span><\/p>\n
In the case of the acquisition of habitual residence by large families, this type is reduced to 4%, fulfilling all the requirements established by law.<\/em><\/strong><\/span><\/p>\n
And in the case of acquisition of homes by real estate companies, for their resale the tax rate is reduced from 2%<\/em><\/strong><\/span><\/p><\/blockquote>\n
As the property transfer tax is assigned to the Autonomous Communities, the regulations applicable to each of them must be taken into account, since as we have said the previous regulations are those of Madrid.<\/strong><\/p>\n
WRITING EXPENSES<\/span>.<\/strong><\/span><\/p>\n
The deed expenses are set in Royal Decree 1426\/1989, of November 17, which approves the Notaries' Tariff, and which in the case of home sales are reduced by 25%. The tariff is calculated on the value declared in the deed, and is regressive, that is, it is not a bit per thousand, but depending on the greater amount, lower percentages are applied.<\/p>\n
Let's give examples:<\/p>\n
For a sale of 90,000 euros the fee would be \u20ac194.73<\/strong><\/span><\/p>\n
For a sale of 120,000 euros the fee would be \u20ac216.11<\/strong><\/span><\/p>\n
For a sale of 150,000 euros, the fee would be \u20ac237.48<\/strong><\/span><\/p><\/blockquote>\n
To these amounts must be added the VAT and the amounts corresponding to the copies that are requested, the paper and the expenses that cause the preparation of the document itself, such as the information to the Property Registry, or to the entities in charge of managing the document. IBI\u2026<\/p>\n
I want to emphasize with this, because it is a very widespread idea that writing expenses are not expensive, a sale can be expensive, but notary expenses are only a very small part of the final cost of the operation, as we will see in the final summary.<\/span><\/strong><\/p><\/blockquote>\n
REGISTRATION COSTS<\/strong><\/span><\/p>\n
As with notary fees, registration fees are set by law, specifically in Royal Decree 1427\/1989, of November 17, which approves the Property Registrars Tariff. The tariff is calculated on the value declared in the deed, and is regressive, that is, it is not a bit per thousand, but depending on the higher amount, lower percentages are applied, and also VAT must be added to these amounts and other concepts, which are regulated in the aforementioned RD.<\/p>\n
OTHER EXPENSES<\/span><\/strong><\/p>\n
Finally, it should be noted that other expenses may accrue, commonly called management, and that include the liquidation of the tax and the presentation of the deeds in the Property Registry. It is not a mandatory expense, but it is convenient to let professionals or the notary itself do it, if you are not in the habit of doing it, because in the long run what is cheap is expensive. The amount is free, it depends on what is agreed with the person who carries out the management.<\/p>\n
FINAL EXAMPLE OF AN ORIENTATIONAL NATURE ONLY. SECOND-HAND HOME PURCHASE PRICE OF 120,000 EUROS in Madrid<\/strong><\/span><\/p>\n
Notary.- 450 euros. approx.<\/span><\/strong><\/p>\n
Registration.- 250 euros approx.<\/span><\/strong><\/p>\n
Tax (ITP 6%).- 7,200 euros.<\/span><\/strong><\/p>\n
Agency.- It depends, example 200 euros.<\/span><\/strong><\/p>\n
Total expenses.- 8,100 euros, which represents 6,75% of the purchase price. Notary fees.- 450 euros, which represents 0.38% of the purchase price<\/span><\/strong><\/p>\n
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