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Additional costs
It is extremely important when you are looking for your ideal home that you are aware of the additional costs of purchase. A lot of the time these costs come as a shock to any one looking to buy a property here in Gran Canaria - especially if you are a first time buyer.
As a general rule you should budget for an additional cost of 8% - 10% of the purchase price to pay for all additional costs associated in buying your dream property. If you are financing this by way of a mortgage there is additional cost of around 3% of the purchase price.
The Taxes and fees to bear in mind are:
- With a New Development :
- IGIC (VAT) which is 5% of the property price.
- Stamp Duty is at 0.75% of the purchase price.
- Plus Valia: This is a tax paid on the increase in value of the land since the previous sale and is fixed by the local Tax Authorities. It is calculated on the size and location of the land. By law, the vendor is obliged to pay this tax.
- With a Resale Property :
- Transfer Tax (ITP) at 6.5% is applicable.
- Plus Valia: This is a tax paid on the increase in value of the land since the previous sale and is fixed by the local Tax Authorities. It is calculated on the size and location of the land. By law the vendor is obliged to pay this, but it is common for the buyer to pay this tax.
- And in general:
- Legal fees: Fees vary between a fixed amount to 1.5% of the purchase price depending on the purchase price and the work involved.
- Notary fees: The notary charges according to a fixed scale and depending on the official value of the property. His charges may range from 500 to 2000 euros.
- Land Registry fees: Again these fees are calculated according to a fixed scale and depending on the official value of the property but generally they are around 50% of the notary fees.
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