February 17, 2025
What are the costs of a real estate purchase and sale and who must bear them?
Many times, buying and selling real estate can be a bit confusing when it comes to seeing the expenses that arise, deciding who should assume certain expenses and how these responsibilities are distributed. We will take advantage of our extensive experience in the subject and that of our lawyers specializing in real estate law, to understand who pays the expenses of a purchase and sale.
First, we highlight what these expenses are and, in each one, we will explain who must assume these costs. It is important that you allocate between 10% and 20% additional to the value of the property to manage all the expenses involved in the purchase and sale.
Although the law is very clear about the distribution of these burdens, it also provides for the possibility of a free agreement between the two parties so that they can agree on how they consider the payment of these expenses to be best. So, once this agreement is signed, it will not lose its validity and must be fulfilled for its intended purpose.
So now we will see who pays the expenses of a purchase and sale, since they will not be the same whether the home is used or new.
Many times, buying and selling real estate can be a bit confusing when it comes to seeing the expenses that arise, deciding who should assume certain expenses and how these responsibilities are distributed. We will take advantage of our extensive experience in the subject and that of our lawyers specializing in real estate law, to understand who pays the expenses of a purchase and sale.
First, we highlight what these expenses are and, in each one, we will explain who must assume these costs. It is important that you allocate between 10% and 20% additional to the value of the property to manage all the expenses involved in the purchase and sale.
Although the law is very clear about the distribution of these burdens, it also provides for the possibility of a free agreement between the two parties so that they can agree on how they consider the payment of these expenses to be best. So, once this agreement is signed, it will not lose its validity and must be fulfilled for its intended purpose.
So now we will see who pays the expenses of a purchase and sale, since they will not be the same whether the home is used or new.
Main expenses of a purchase and sale
Public deed
This is one of the most important expenses for the purchase and sale of the property. In this case and unless otherwise agreed, the seller must incur this expense, provided that the original deeds are involved. However, if the buyer needs a copy of this document, he must pay for the copy(s) he needs to carry out procedures, for example, a mortgage.
IVA
This tax is only levied on new homes, so 10% of the value of the property must be paid. In the case of public or social housing, only 4% must be paid. In addition to VAT, the Tax on Documented Legal Acts (IADJ) must also be added, which was previously paid by the buyer, but the legislation indicates that the bank must pay it in the case of a mortgage.
Registre de la Propietat
In this case, it is the buyer who has the responsibility to assume this expense since through this registration, the public administration will know who owns the property.
Property transfer tax
Els percentatges solen oscil·lar entre el 4% i el 6% del valor de l’immoble i en aquest cas, és el comprador qui assumeix aquesta despesa. Aquest percentatge varia segons cada comunitat autònoma. El venedor no tributarà a l’ITP, sinó a l’IRPF, ja que aquest últim grava la renda obtinguda en un any natural per les persones físiques residents a Espanya.
Cancellation of liens, charges and other expenses
To make the sale of the property, the seller must deliver the property free of mortgages, taxes and cleared of any debt that may be on the property. In very few cases, the buyer agrees to buy the property with the mortgage of the previous owner.
Tax on the increase in the value of urban land
Yes, that is what we know as PLUSVALIA. Since it is a tax that is paid thanks to the increase in the cost of the property over time, the seller must pay it. This only has to be paid in case there has been a gain in the appraisal of the property, if the opposite is true and it has depreciated, this tax will not have to be paid.
Property Tax – IBI
Initially, the law stipulated that the IBI had to be paid by the person who purchased the property by January 1 of the year in which it was purchased, regardless of whether the sale was made during the year. Thanks to the ruling of the Supreme Court, this tax can be paid by agreement between the two parties on a proportional basis.
Keep in mind that in many cases, what are considered ‘Notary Expenses’ already include several of these taxes and it is the notary who sends these amounts to the Treasury.
As you can see, it is necessary to understand who pays the expenses of a purchase and sale, so that when you go through the process you have clarity about everything that is involved. But there is no need to be overwhelmed, that is why Finques Prat has advisors, lawyers and professionals who accompany you throughout the process and are responsible for managing everything for you.
If you have plans to sell or buy a home, contact us and we will advise you according to your needs and interests.
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