Taxes, Fees & Other Costs

Taxes, fees & other costsAs anywhere else in Europe there are associated costs in purchasing property in Gran Canaria (i.e. in the Stamp Duty and Legal Expenses).

There are a number of factors that enter into the calculations of the fees, taxes and costs involved. As a guide you should budget around 8 % to 10 % of the purchase price of the property.

On all Spanish property transfers there are two fees and one tax payment which become payable.

The notary will require a fee for preparation of the title deeds (Escritura de Compra-Venta) and another fee is required for registering the property in the new owner’s name(s).

Currently in the Canary Islands there is a document tax of 0.75 % and a transfer tax of   7 % of the value of a new property (assuming you are purchasing a new build property from a developer), or 6.5 % if you are purchasing a re-sale property previously owned by a private owner (most common case).

Further essential fees for consideration are that of your solicitor. Generally depending on the time and work involved this fee will be around 1 % of the purchase price.

So adding up all taxes, expenses and legal fees together, the guideline to provision for costs should be approximately 10% of purchase price.