Buying property involves more than arranging a mortgage and agreeing a sale price. Beyond the headline amount, buyers must cover obligatory charges — notably notary fees and statutory taxes — that materially change the final cash required. This report explains the principal cost components,
the differences between purchases from a private seller and an enterprise/builder, and the typical tax regimes for a first home versus a second home.
Clear forecasts of these expenses help households and small businesses plan liquidity and avoid surprises at deed signing. The sections that follow break down common items, give example rates, and outline how authorities compute the tax base used for registration and
stamp duties.
Main components of notary-related charges
Who pays what, and why, depends on the contract type and the seller’s status. Buyers meet three broad categories of outlays: direct professional costs, mandatory public levies, and variable ancillary expenses.
First, there are professional fees to the notary and other advisers. These cover document drafting, title searches and the notary’s formal role in authenticating the
transfer. Second, there are public charges — registration, cadastral and mortgage taxes — calculated on statutory bases that differ by seller type and property classification. Third, ancillary costs include cadastral updates, municipal certificates and any compliance work needed to regularize the property before transfer.
Anyone who has launched a product knows that sticker price rarely equals total cost. The same applies to real estate: headline purchase price plus mandatory charges equals the true cash outflow. Growth data tells a different story: liquidity shortfalls at signing are a frequent cause of delayed closings and renegotiations.
The next section will itemize typical notary fee components and show example calculations for purchases from a private seller and from an enterprise/builder.
Notary fees
The notary fee covers professional work such as title searches, mortgage checks and drafting ancillary deeds. Fees typically rise with transaction complexity and the administrative burden. Buyers should obtain a written estimate that itemizes the fee, office copy costs and certification expenses so the full charge is clear before signing.
Typical components of a notary fee include:
- pre-contract due diligence: searches on title, encumbrances and planning status;
- drafting and review: preparation of the deed and any related documents;
- execution services: attendance at signing and formalisation of signatures;
- administrative extras: certified copies, registry filings and courier costs.
Example calculation: for a straightforward private sale, a notary may charge a base fee plus a variable percentage for work tied to the property value. Ask for a scenario-based estimate — for instance, prices for a simple transfer, a transfer with an existing mortgage, and a transfer requiring additional title work.
I’ve seen too many deals stall because buyers underestimated ancillary costs. Requesting detailed quotes from two notaries reduces the risk of unexpected expenses.
Statutory taxes
Statutory taxes are set by law and vary with the buyer’s status and the nature of the property. They include transfer taxes, value-added tax where applicable, and any registration levies required by the land registry. Unlike the notary fee, these taxes follow fixed rules and tables.
Key distinctions that affect tax amounts:
- whether the sale is from a private seller or from an enterprise/builder;
- the buyer’s tax status (first-time buyer, primary residence exemptions, business purchase);
- the declared transaction value and any tax-assessed cadastral value differences.
Practical step: obtain a tax breakdown from the notary or tax adviser that shows each statutory item and its calculation basis. That breakdown enables side-by-side comparison of offers from different sellers and clarifies the total cash needed at closing.
Typical tax regimes and practical examples
That breakdown enables side-by-side comparison of offers from different sellers and clarifies the total cash needed at closing. The tax consequences hinge on two clear variables: whether the buyer qualifies for first-home concessions and whether the seller is a private individual or an enterprise. The result is a choice between a reduced registration tax, a standard registration tax, or VAT, with fixed ancillary duties remaining relevant in all cases.
First home bought from a private seller
When a purchaser uses first-home benefits and the seller is a private individual, the transaction generally attracts a reduced registration tax rather than VAT. Mortgage and cadastral duties typically remain fixed amounts set by law and are payable in addition to the registration tax.
Buyers who do not qualify for first-home concessions face a standard registration tax on transfers from private sellers. The same fixed ancillary duties apply. The difference between reduced and standard regimes alters the upfront cash required at closing more than it changes ongoing costs.
Anyone who has launched a product knows that clear unit economics prevent nasty surprises. The same logic applies to property deals: model the purchase with both tax regimes to see the true acquisition cost. Growth data tells a different story: headline price often masks tax-driven differences in required cash at signing.
Practical comparison points for buyers
Compare three figures for each offer: the sale price, the applicable tax regime (reduced or standard registration tax, or VAT), and fixed ancillary duties. That trio shows the immediate cash need and reveals whether a lower price actually delivers better value after taxes.
From a practical standpoint, verify the seller’s legal status early. Documents proving private ownership or enterprise registration determine whether VAT can apply. I’ve seen too many startups fail to anticipate similar binary variables; in property, failing to confirm seller status creates equally costly miscalculations.
Next steps: request a written breakdown from the seller or notary that separates sale price, registration tax regime, VAT if applicable, and fixed ancillary duties. Those figures allow straightforward comparison and reduce the risk of unexpected cash requirements at closing.
Those figures allow straightforward comparison and reduce the risk of unexpected cash requirements at closing.
If the property qualifies as the buyer’s first home and the seller is a private individual, the registration tax is normally charged at a reduced rate of 2% on the cadastral value. Mortgage and cadastral duties are frequently fixed amounts, commonly about €50 each. National and regional rules vary; buyers should verify local regulations before signing.
First home bought from a builder
When the seller is a construction company and the purchase falls under the first-home scheme, the transaction is typically subject to VAT at 4% on the sale price rather than the 2% registration tax. In these deals the mortgage and cadastral duties are usually higher fixed amounts, commonly around €200 each, reflecting the different tax regime. Anyone who has launched a product knows that small line-item differences change the unit economics; here the tax mix changes the total cash at closing.
Second homes and purchases not eligible for first-home benefits
For purchases that do not qualify for first-home benefits, the registration tax is generally higher and calculated on the declared purchase price or cadastral value, depending on the applicable rules. VAT may apply if the seller is a company and the sale falls under VAT rules. Buyers should expect larger fixed duties and higher effective tax rates compared with first-home purchases.
I’ve seen too many buyers underestimate these differences and misjudge affordability. Growth data tells a different story: small percentage points and fixed fees materially affect upfront cash needs. Verify the seller type and the applicable tax regime early. Ask the notary or a tax advisor for precise calculations before committing to a purchase.
Ask the notary or a tax advisor for precise calculations before committing to a purchase.
For purchases of second homes from a private seller, the buyer normally pays the ordinary registration tax. The rate is commonly about 9% on the cadastral value. Mortgage and cadastral duties remain small fixed amounts in these transactions.
If the seller is a business, the tax treatment changes. The buyer is usually charged VAT at standard rates. In many cases that means 10%, while luxury-class properties may attract a higher rate such as 22%. In business sales, mortgage and cadastral duties are typically fixed amounts close to €200 each.
How to calculate the taxable base and practical steps
Step 1: establish the taxable base. For registration tax on sales between private parties, the taxable base is the cadastral value revalued by statutory coefficients. For VAT-based sales, the taxable base is the contract price or the VATable portion of that price.
Step 2: apply the correct rate. Multiply the revalued cadastral value by the registration tax rate (commonly 9%) for private sales. For business sales, apply the applicable VAT rate to the taxable price (commonly 10% or 22% for luxury properties).
Step 3: add fixed duties. Include mortgage and cadastral duties. In many business sales these are fixed amounts of about €200 each. Private-party transactions may show lower fixed amounts or different statutory figures.
Step 4: check exemptions and reduced regimes. Certain buyer profiles or property categories may qualify for reduced registration rates or VAT exemptions. Verify eligibility before signing the contract.
Anyone who has launched a product knows the value of running scenarios. Run at least three: base, downside and stress. Compare the resulting cash requirement at closing against available funds and financing limits.
Practical tip: request an itemised calculation from the notary that shows the taxable base, applied rates, and fixed duties. That document reduces the risk of unexpected cash demands at closing.
That document reduces the risk of unexpected cash demands at closing. Before calculating taxes, the buyer must establish the correct taxable base. The process begins from the property’s cadastral income, which is increased by 5% and then multiplied by the coefficient for the property’s cadastral category.
For many primary residences the common coefficient is 115.5. Other categories may use different multipliers, such as 126. The product of the adjusted cadastral income and the coefficient yields the cadastral value used to compute the registration tax.
Because the coefficient and the official cadastral income set the tax base, verify both figures against official land registry records or with a qualified professional before finalizing the purchase. Accurate verification prevents underestimation of fiscal burden and supports financing plans.
Practical recommendations
Check the official cadastral income in the land registry entry for the property. Cross-check the cadastral category used to assign the correct multiplier. Ask the notary or a tax advisor to show the computation line by line.
I’ve seen too many buyers underestimate closing costs, and the error often comes from an incorrect cadastral value. Anyone who has purchased property knows that a small percentage difference can change cash needs at signing.
If the registry data appear inconsistent, obtain a formal cadastral certificate or a professional appraisal. Keep documentation of the calculation with the purchase file. That paperwork reduces disputes and supports mortgage underwriting.
Key terms to confirm with advisers: cadastral income, applied 5% uplift, cadastral category coefficient, and the resulting cadastral value. These items determine the registration tax and thus influence the total cost of purchase.
Ask the notary for a transparent, itemised written quote
These items determine the registration tax and thus influence the total cost of purchase. Buyers should obtain a detailed written quote from the chosen notary that separates taxes, the notary fee, and any incidental charges.
Comparing multiple estimates helps assess both fees and professional competence without sacrificing legal security. Use reputable notary registries and platforms specialising in real estate services to shortlist candidates and request tailored quotes.
Treat taxes and notary fees as distinct budget lines. Confirm the property’s qualification (first or second home), verify whether the seller is a private individual or an enterprise, and ensure the cadastral value is calculated correctly.
Anyone who has launched a product knows that clear unit economics prevent surprises. I’ve seen too many startups fail to forecast basic costs; the same applies to property deals. Request a comprehensive written estimate before signing the deed to avoid last-minute cash demands.
Professional legal advice remains indispensable to capture regulatory nuances and to ensure final figures are accurate. Practical checks now reduce the risk of costly disputes later.