For all property transfers in Spain, there are taxes and fees, some are the responsibility of the buyer and some of the seller.
BUYERS TAXES AND FEES
Notary fees : The Notary is entitled to a fee for preparing the Escritura (regulated by law), calculated according to the declared sales price and the number of pages included in the Title Deed.
Land Registry Office fee : There is a further fee for registering the property in the new owner’s name. In the same manner, these fees will be calculated according to the declared sales price and the number of pages included in the Title Deed.
Tax on the Transmission of Holdings : When the Title Deed is registered at the Land Office Registry , the buyer must pay this tax. There is a document tax of 0.75% plus a local tax (I.G.I.C.) which is at present 5% of the official value if you are purchasing a new property from a developer. If you are buying a resale property, the transfer tax will be 6.5% of the official selling price.
SELLERS TAXES AND FEES
Retaining Tax : According to Spanish law, if the seller is a non-resident foreigner, a retaining tax of 3% of the sale will be deducted by the buyer at the time of signing the Notarised Deed. This Retained Tax will be mentionned in the Deed. The buyer must pay this amount to the Spanish Tax Office, in the name of the seller within a period of 30 days from the date of the Deed
This is payable each time the seller is a non-resident foreigner, in order to guarantee payment of the tax in case the seller should leave Spanish territory.
The responsability for payment is charged against the buyer. If the seller does not owe this tax, it is his responsability to reclaim it from the Spanish tax authorities.
If the seller is a Spanish resident, the 3% retention is not required, as the administration expects the seller to make his own fiscal declaration on a regular basis.
Capital Gains Tax: The Capital Gains tax (Plus Valia) is a municipal tax calculated on the new value of a property and is the responsability of the seller.
The fees and Retaining Tax are due within 30 days after signing the Deed, but the Capital Gains tax is often calculated and due much later when the seller can no longer be found and is charged against the property, which means that if the vendor fails to pay, the purchaser will eventually be liable for this tax.