Off plan property in Spain

A guide to buying Spanish property off plan

This guide has been prepared to help you go about buying off plan property in Spain. It has been written with home-buyers rather than off-plan speculators in mind. The best advice I can give amateur off-plan speculators hoping to make a killing in a hurry is wise up. High-return, low-risk investments don't exist. It may have worked with off plan Spanish property in the past but the game is now up.

Taxes and other administrative costs when buying off plan in Spain

When you buy a residential property off plan from a developer you pay exactly the same taxes as you would were you to buy a finished property from a developer.

You will pay VAT of 7% on top of the purchase price. Any stage payments you make will include VAT.

When you sign the public deeds before a Notary you will also have to pay 1% of the property price (excluding VAT) in stamp duty.

Finally, as is the case when you buy any property in Spain, you will have to pay the Notary fee and the land registry fee. These vary according to the price of the property and the number of clauses in the deeds. Combined they shouldn't amount to more than 1% of the price of the property.

© Mark Stucklin (Spanish Property Insight)

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