Chapter

Professional fees when buying property in Spain

§ 1Four professionals, two kinds of fee

A purchase in Spain involves up to four professionals whose fees sit on top of the price and the taxes. The notary records the deed. The land registry records your ownership. A lawyer, if you appoint one, protects your interests. A gestor, if you use one, handles the paperwork. Two of these, the notary and the registry, charge by scales approved by the state. The other two set their fees with you. Knowing which is which tells you where you can ask questions and where you can compare quotes. The place of these fees in the whole budget is in the full costs of a purchase, and the wider section is the wider costs and taxes section.

§ 2The notary

The notary gives free, impartial advice, checks identities, capacity, ownership and charges, and drafts the deed. You may choose your notary, even where a developer proposes one. The fee follows the notaries' scale, so a notary cannot charge you more because you are a foreigner, and the main driver is the value in the deed. Notary fees explains how the fee works and who pays it.

§ 3The land registry

Registration makes you the recognised owner against the seller's creditors and hidden charges, and it is the step that protects your purchase. The registry also charges by a state scale. Land registry fees sets out how the fee is built and what a buyer should ask for.

§ 4The lawyer

A lawyer who acts only for you is the cost most often skipped and most often regretted. There is no official scale for this fee, which is why quotes differ, and why a written engagement letter matters. Lawyer fees explains how lawyers charge, what the fee should cover, and how to avoid acting through someone tied to the seller.

§ 5The gestor

A gestor is a licensed agent who files tax returns, submits documents to the registry, changes the holder of the property tax and handles utilities. The fee is agreed with you and often forms part of a lawyer's package. Gestor fees covers what a gestor does and what to ask for.

§ 6What the law says about who pays the deed

The civil code starts from a default split: the costs of granting the deed of sale fall on the seller, and those of the first copy and later documents fall on the buyer, unless the parties agree otherwise. In practice the contract often moves more costs to the buyer, so read the clause and ask for the allocation in plain words. Registration costs fall on the party who asks for the registration, which is nearly always the buyer.

§ 7Costs you meet before the deed

Some costs arrive before the notary. A valuation, a survey, certified translations and the extract from the registry are paid in advance, and a deposit may be asked for when you reserve. Ask each professional which of these are included in the quote, and keep every receipt, because the lawyer or gestor will need them to complete the file and to show what was paid, to whom and on what date.

§ 8How to compare quotes

Ask for a written quote that lists the services, what is excluded, the tax on the fee and when it is due. Compare the totals, not the headline figures. Notary and registry costs depend on the value of the deed, so use the same price in every quote. A low lawyer quote that leaves out the registry visit or the tax return is not low once you add the missing work.

§ 9How this fits with the taxes

The fees sit beside the taxes, not instead of them. The tax on a resale is explained in the ITP chapter, and the taxes on a new home are in the new-build taxes chapter.

§ 10What to keep in reserve

Allow for extra copies, translations, certificates and travel. A reserve chosen in advance lets you pay them without delaying the deed. The taxes that follow a sale are explained in the plusvalía chapter, and the yearly taxes that follow a purchase are in the taxes you pay every year.

§ 11A note on timing

The professional fees fall at different moments. The lawyer's retainer is usually first, the notary and registry fees follow the deed, and the gestor's invoice comes with the filing of the tax. Ask each professional when the payment is due and in what form, and note the dates beside the amounts.

§ 12Taxes for non-residents, sellers and heirs

The yearly taxes of an owner who lives abroad are described in the rules on non-resident taxes, and the tax on the profit of a sale is described in the rules on capital gains tax on a sale.

The tax on inheritances and gifts is described in the rules on inheritance and gift tax.

Tax note. Rates depend on the region, the type of property and the buyer, and they change. Figures here are dated and sourced; examples are illustrative and show their assumptions. Confirm yours with the regional tax agency or a tax adviser.