Typical Costs of buying in Spain and Portugal
One of the attractions of Spain and Portugal is the lower cost of living compared with the UK. Housing, food, travel, clothing, and entertainment are all much cheaper. However, property purchase is one of the few areas where the UK is below the European average of around 10%.

SPAIN
EITHER: I.V.A. (VAT) on new construction 7% of the contract price (16% on land)
OR: Transfer Tax (Stamp Duty) on resales 7% of the declared value
PLUS: Legal Fees 1% approximately
Notary and Land Registry Fees 1% approximately
Title Deed Tax 0.5% of the declared value
Plus Valia tax on any increase in land value varies, and may not even apply.
TOTAL: Typically around 10%

Typical Costs of buying in
PORTUGAL
EITHER: I.V.A. (VAT) on new construction 17% of the construction price
OR: SISA Tax (Stamp Duty) on resales and land Banded, from zero to 10% of declared value
PLUS: Legal Fees 1% approximately
Notary and Land Registry Fees 1% approximately
TOTAL: Typically around 12%

An important exception in Portugal is property held in ownership by offshore companies, where no SISA tax is payable on purchase and other tax advantages may also apply. however the regulations are complex and constantly changing, so we will arrange an introduction to a specialist in these matters at the appropriate time.

Typical Annual Costs of
OWNERSHIP ABROAD
Community Fees: Controlled by the committee of owners and based on a percentage of the cost to maintain any communal facilities provided, relative to the size of your property. Charges vary, but usually between 0.5% and 1% of your property value. Generally don't apply to villas outside urbanisations.

Local Rates   Vary. 0.2% is typical
Property Tax   0.2% of rateable value
Insurance   0.5% to 1% of value
Water and Electricity have a standing charge and metering   Similar to UK and Ireland
Fiscal Representative (Gestor) to manage tax returns, official payments etc.- around £250.