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Additional Property Purchase Costs on Fuerteventura: Taxes, Lawyer and Notary
When purchasing property on Fuerteventura, additional costs arise alongside the purchase price for taxes, legal due diligence, notarisation and registration in the Land Registry.
The tax burden primarily depends on whether you are purchasing a resale property or a newly built property as a first supply by a property developer:
• Resale property: generally 6.5% ITP
• New-build property: generally 7% IGIC and 0.75% AJD
• General acquisition taxes on new-build properties: 7.75% in total
Additional costs may include lawyers’ fees, notary fees, Land Registry fees and expenses for a gestoría, translations, powers of attorney, technical inspections and financing.
A general ten-percent rule is therefore insufficient for a reliable calculation of the additional property purchase costs.
Which Additional Purchase Costs Arise on Fuerteventura?
The additional costs of purchasing a property consist of several cost categories:
• ITP on resale properties
• IGIC and AJD on new-build properties
• legal due diligence and contract review
• notarised deed of sale
• registration in the Land Registry
• gestoría and tax processing where applicable
• powers of attorney, translations and interpreters
• technical property inspection
• property valuation and additional financing costs
The costs actually incurred depend on the type of property, the buyer’s profile, the legal and technical condition of the property and the agreed scope of services provided by the professionals involved.
Resale Property: Generally 6.5% ITP
When purchasing a resale property on Fuerteventura, Spanish property transfer tax, known as ITP, generally applies.
The standard ITP rate in the Canary Islands is 6.5%. The buyer is generally responsible for paying this tax.
The calculation is not necessarily based exclusively on the agreed purchase price. If the property has a higher tax reference value, known as the valor de referencia, this may be relevant when determining the taxable base.
Reduced tax rates may apply under certain conditions. Relevant factors include use as the buyer’s principal residence, the taxable base, age, income, existing residential property ownership and the buyer’s personal circumstances.
Possible tax reductions should therefore be assessed individually before signing a reservation agreement or an arras contract.
ITP, cadastral reference value and possible tax reductions in detail
New-Build Property: Generally 7% IGIC and 0.75% AJD
When purchasing a new-build property as a taxable first supply by a property developer, ITP generally does not apply.
Instead, the following taxes normally apply:
• 7% IGIC
• 0.75% AJD
• total acquisition taxes of 7.75%
The decisive factor is not solely whether the property has been newly constructed or has never previously been occupied. The seller’s status and the tax history of the specific transaction are also relevant.
When purchasing from a property developer, the building permit, approved project, building specifications, payment schedule, protection of advance payments, completion date and handover procedure should also be reviewed.
Calculate IGIC and AJD on new-build properties in full
Lawyers’ Fees and Legal Due Diligence
The fees charged by a buyer’s lawyer are not determined by a uniform statutory percentage.
Possible remuneration models include:
• fixed fee
• percentage-based fee
• time-based billing
• combination of different fee models
The decisive factor is not only the amount of the fee, but also the scope of services agreed in writing.
Legal due diligence may include the review of ownership, Land Registry information, encumbrances, Cadastre records, planning and building law, debts owed to the owners’ association, the reservation agreement, the arras contract and the notarised deed of sale.
For resale properties, the assessment frequently focuses on existing building elements, discrepancies in floor areas, encumbrances and the planning and building-law situation.
For new-build properties, the review focuses particularly on the developer, permits, project documentation, payment schedule, security for advance payments, completion and handover.
Understand lawyers’ fees and due diligence when purchasing property
Notarkosten und öffentliche Kaufurkunde
Notary fees for a property purchase on Fuerteventura are calculated according to a tariff regulated by the Spanish state.
The final amount depends, among other factors, on:
• transaction value
• length and complexity of the deed of sale
• number of parties involved
• number of properties or Land Registry units
• powers of attorney used
• copies required
• additional declarations and annexes
It is therefore incorrect to state generally that the notary always costs one percent of the purchase price.
The notarial tariff is governed by Royal Decree 1426/1989.
The notary acts independently and impartially. Notarisation therefore does not replace legal due diligence conducted exclusively in the buyer’s interests.
The deed of sale, mortgage deed, power of attorney, Land Registry fees and gestoría services are also separate cost items.
Understand notary fees and the notarised purchase process
Example: Additional Purchase Costs for a Purchase Price of €500,000
Resale Property
Taxable base: €500,000
ITP at 6.5%: €32,500
New-Build Property as a First Supply
Purchase price: €500,000
IGIC at 7%: €35,000
AJD at 0.75%: €3,750
Total acquisition taxes: €38,750
These calculations include only the general acquisition taxes.
Lawyers’ fees, notary fees, Land Registry fees, gestoría services, technical inspections, translations, powers of attorney and possible financing costs are additional.
Possible tax reductions have not been included in these examples.
Additional Costs When Purchasing Property
Depending on the individual transaction, further additional purchase costs may arise.
Land Registry
Following notarisation, the competent Land Registry reviews the deed of sale and registers the buyer as the new owner.
Land Registry fees and notary fees are calculated separately.
Gestoría
A gestoría may handle the tax return, payment of taxes, submission to the Land Registry and monitoring of the ownership registration.
Before appointing a gestoría, it should be clarified whether these services are already included within the scope of the buyer’s lawyer or another transaction-processing service.
Powers of Attorney and Translations
International buyers may require a notarised power of attorney, certified translations, an apostille or language assistance during the notary appointment.
These services are generally charged separately.
Technical Property Inspection
Legal due diligence does not replace a technical building inspection.
The structural condition, moisture, cracks, roof, building services, electrical installation, water pipes and possible renovation requirements must be assessed by a technical professional.
Why Ten Percent Is Not Always Sufficient for Additional Purchase Costs
The ten-percent rule can serve as an initial approximate liquidity reserve, but it does not account for all differences between new-build and resale properties.
The actual additional purchase costs are influenced in particular by:
• type of property
• taxable base
• cadastral reference value
• possible tax reductions
• scope of the legal due diligence
• technical condition
• powers of attorney and translations
• financing structure
• necessary registration or legalisation procedures
A reliable cost calculation must record these items individually.
Why Ten Percent Is Not Always Sufficient for Additional Purchase Costs
The additional purchase costs should be calculated before signing the first legally binding document.
Reservation agreements and arras contracts may already create legally binding obligations. The General Council of Notaries points out that private purchase agreements may be legally binding and that buyers should obtain sufficient information before signing documents or making payments.
Before signing a reservation agreement, at least the following questions should be clarified:
1. Is the property a resale property or a taxable first supply?
2. Does ITP or IGIC apply?
3. Is AJD additionally payable?
4. Which taxable base applies?
5. Does a cadastral reference value exist?
6. Is a tax reduction potentially available?
7. Which legal due diligence is required?
8. Which notary and Land Registry costs will arise?
9. Are powers of attorney or translations required?
10. What is the total amount of own funds required?
Three Specialist Pages on Additional Purchase Costs
Property Transfer Taxes on Fuerteventura
ITP on resale properties, IGIC and AJD on new-build properties, the cadastral reference value, possible tax reductions and specific calculation examples.
Review property transfer taxes on Fuerteventura
Lawyers’ Fees When Purchasing Property
Fee models, the engagement letter, legal due diligence and the review of reservation agreements, arras contracts and property developer agreements.
Understand lawyers’ fees and the scope of legal review
Notary Fees When Purchasing Property
Notarial tariffs, the public deed of sale, allocation of costs, powers of attorney, copies and the procedure followed during the notary appointment.
Understand notary fees and the deed of sale
Conclusion: Calculate Additional Property Purchase Costs on Fuerteventura Realistically
When purchasing property on Fuerteventura, the following generally applies under the standard tax regime:
Resale property:
6.5% ITP
New-build property as a first supply:
7% IGIC
+ 0.75% AJD
= 7.75% acquisition taxes
Depending on the transaction, lawyers’ fees, notary fees, Land Registry fees and other individual expenses are additional.