What costs are involved when buying a house in Galicia?

12/26/20231 min read

MacBook Pro, white ceramic mug,and black smartphone on table
MacBook Pro, white ceramic mug,and black smartphone on table

In this article, we will attempt to break down the cost of acquiring a property in Galicia. The percentage of taxes that must be assumed when purchasing a house varies depending on regional legislation and also differs based on whether the property transaction involves a new or resale home.

Taxes to pay when buying a new property in Galicia

VAT (Value Added Tax): This tax must be paid when purchasing a new construction property. VAT is applied in almost all regions of Spain, with a general rate of 10%.

AJD (Actos Jurídicos Documentados): This tax is calculated on the public deed executed before a notary and applies to the legalization of various notarial, commercial, and administrative documents. The general rate for this tax is 1.5%. It is applied to the declared value in the document, subject to administrative verification.

Taxes to pay when buying a pre-owned property

ITP (Impuesto de Transmisiones Patrimoniales): In the case of a resale property transaction, instead of paying VAT, one must pay the Property Transfer Tax. This tax is applicable when conducting transactions involving the sale of movable or immovable property. Generally, it is set at 9%, and 6% in less populated areas.

These are the main taxes that must be addressed. Additionally, it is essential to consider other potential expenses, such as notary fees or legal fees if you are assisted by an attorney.

If you are a foreigner and require legal assistance, we would be delighted to help. Feel free to contact us without obligation at (+34) 618195296 or via email at info@realestatelawyersgalicia.es.