Are you considering an investment property and are concerned about what expenses you will face?

The notary is a central figure in the buying process, responsible for drafting and certifying the deed. Notary fees are regulated by the state and vary mainly according to the value of the property and the complexity of the deed.

How is the notary’s cost calculated?

1. Property value: Notary fees are progressive and increase with the declared value of the property. For example, for properties worth more than 100,000€, the rate charged is lower than for properties of lower value.
2. Additional services: If the deed includes special clauses, such as usufruct rights or property divisions, costs may increase.
3. Number of pages in the deed: Longer deed means higher costs, as rates include the cost per page.

Estimated cost:

• Low to medium value properties: Between €600 and €900.
• Properties with high value or legal complexity: Up to €1,300 or more.

Transfer Tax (ITP – Impuesto de Transmisiones Patrimoniales).

If you are buying a used property, the ITP will be one of the main taxes you will face. This tax varies by region in Spain, and in the Canary Islands, the rate is generally set at 6.5 percent of the purchase price.

What is ITP?

ITP is a compulsory tax that applies to the transfer of existing property (used real estate). It is calculated as a percentage on the declared value of the property in the sales contract or, if higher, on the minimum cadastral value established by the tax administration.

How and when is ITP paid?

• Deadline for payment: You have 30 working days from the date of signing the notarial deed to pay the tax.
• How to pay:
  1. At the Regional Tax Agency: You can go directly to the tax office of the Autonomous Community of Canary Islands.
  2. Online: Some regions offer an online payment system through the tax agency’s official website.
  3. Through a manager or lawyer: You can hire a professional to complete the formalities on your behalf.

Sample calculation:

For a property worth €200,000, the ITP will be:

• 6,5% × 200.000€ = 13.000€.

Important caveats:

1. Declared value: Make sure that the declared value of the property matches at least the minimum cadastral value established by the tax authorities. If you declare a lower value, you may be subject to tax audits and an assessment with penalties.
2. Payment receipt: Always keep the ITP payment receipt, as it will be needed to complete the registration of the property at the land registry.

After executing the notarial deed, it is necessary to proceed within 30 days to pay the fees related to the registration of the property at the land registry (Registry Office).
These costs are established by regulations and vary according to the value of the property.

They are usually between 400 and 800 euros.

Our property tax management services in Gran Canaria

Many real estate investors who decide to purchase property in Spain or the Canary Islands are often unaware of the automatic obligation to pay local taxes.
Knowledge of these taxes is essential to optimize investments and ensure tax compliance.

My Team offers comprehensive assistance in the tax management of your property in Gran Canaria.
We are experts in both support for the purchase and sale of real estate, as well as the management of income from short rentals, for both non-resident and resident owners.
By choosing our services, you can optimize your property tax management with professionalism and expertise.

FOR MORE INFORMATION CLICK HERE AND DISCOVER ALL OF OUR TAX MANAGEMENT SERVICES FOR APARTMENTS IN GRAN CANARIA