Real Estate Purchase Costs in Valencia: What Every Investor Should Know
When planning to invest in property in Valencia, it’s essential to understand the full range of costs beyond the purchase price. Below is a breakdown of typical fees, taxes, and administrative costs associated with buying real estate in the region.
1. Property Transfer Tax (Impuesto de Transmisiones Patrimoniales – ITP)
- Rate: Typically 10% of the purchase price for resale properties.
- Example: For a property priced at €200,000, the ITP is €20,000.
Discount for Individuals with Disabilities:
- Reduced to 4%, but only applicable to buyers with official recognition of disability status granted in Spain.
- This requires:
- A formal application
- Certified translations of documentation
- Registration at a local municipal office
- Processing time: Up to 6 months
- Best suited for buyers who already own property in Spain or are purchasing off-plan (new developments) with longer delivery timelines.
Note: A Spanish address is required for administrative purposes — expect significant bureaucracy.
2. Value-Added Tax (IVA) – For New Properties
- Rate: 10% of the purchase price
- Example: For a new home priced at €200,000, IVA amounts to €20,000
Applies only to new properties (first-time sales by a developer).
3. Notary Fees
- Range: Approximately 0.5% – 1% of the property value
- Example: €1,000 – €2,000 for a €200,000 property
4. Land Registry & Court Fees
- Range: Typically 0.5% – 1% of the purchase price
- Example: €1,000 – €2,000 for a €200,000 home
5. Real Estate Agency/Brokerage Fee
- Range: 0% – 5%, depending on the agent and the deal structure
- Valencia market standard: Around 3% – 5%
- Example: For a €200,000 investment, expect €6,000 – €10,000
???? Sometimes this fee is paid by the seller; clarify this before signing any agreements.
6. Optional but Recommended: Legal & Advisory Fees
- Legal assistance (due diligence, contract review): ~1% of the purchase value
- Notary representation or power of attorney
- Technical reports, property inspections, or independent appraisals
These fees vary based on the property’s complexity and the buyer’s needs.
Total Estimated Costs
| Fee Type | Approx. Cost for €200,000 Property |
|---|---|
| Property Transfer Tax / IVA | €20,000 |
| Notary | €1,000 – €2,000 |
| Registry & Court | €1,000 – €2,000 |
| Brokerage | €6,000 – €10,000 |
| Legal & Advisory (optional) | ~€2,000 |
| Estimated Total | €30,000 – €36,000 (15% – 18%) |
Final Thoughts
Expect to pay approximately 15% to 18% of the property value in additional fees and taxes when buying real estate in Valencia. Knowing these figures in advance will help you plan your budget more accurately, compare offers fairly, and avoid unpleasant surprises during the buying process.