• A LIST OF ALL THE COSTS OF BUYING A PROPERTY IN SPAIN


    Buying a property in Spain entails certain costs in addition to the purchase price. As well as taxes, you’ll need to pay fees for professional services bringing the total to between 10% and 15% extra. Don’t forget to factor this figure into your budget for the purchase. In this article, we list all the costs involved in buying a property in Spain and how much you can expect to pay for each one.

    Official taxes

    Property purchase in Spain comes with a high fiscal obligation – between 8% and 11.5%. Which taxes and how much you pay depend on whether you’re buying a new or resale property.

    New properties

    The purchase of a new build (a property being sold for the first time) involves the payment of VAT (10% of the price) plus 1.5% Legal Documentation Tax (AJD in Spanish). This brings you total tax bill to 11.5% if you’re buying a new property in Spain.

    Resale properties

    If you’re buying a resale property (one that has already changed hands at least once), you’re liable for transfer tax (ITP in Spanish) that is levied on a sliding scale depending on the purchase price. On the Costa del Sol and the rest of Andalucia, you pay between 8% (on properties priced below €400,000) and a maximum of 10% (on properties priced over €700,000).
    You can read more detailed information about taxes payable when you buy a property in Spain here. Link to buying tax article.

    Fees

    In addition to taxes, you’ll also have to pay certain fees when you buy in Spain. They include:

    Notary fees

    The notary charges for preparing the title deeds for the sale and witnessing the signature of the deeds by both parties. Fees are calculated depending on the purchase price and the complexity of the title deeds – for example, purchases with a mortgage attract higher notary fees. Factor in 1% of the price, although you will probably pay around 0.5%.

    Land Registry fees

    The Land Registry (Registro de la Propiedad) officially records the ownership of the property in your name once the purchase has been completed. For this, fees of between 0.5% and 1% are charged, depending on the purchase price and whether a mortgage is involved.

    Legal fees

    Using the service of a lawyer during the purchase process is highly recommended. Expect to pay around 1% of the price for legal services, more if the purchase involves complex negotiations or legalities.

    Estate agent fees

    Real estate agency fees are usually paid by the seller. Fees range from 2% to as high as 10% (or more) depending on the type of property and whether the agent has an exclusive contract to sell the property. However, since real estate agency fees are usually included in the purchase price you don’t need to budget separately for them in your calculations.

    Banking costs

    If you’re transferring money to Spain from your bank account in your home country, you may incur fees on the transaction, particularly if you’re transferring from a different currency to euros. Using the services of a specialist currency exchange broker can reduce bank charges – shop around for quotes.
    Banks also charge for issuing the banker’s draft used to make the payment for the property when you sign the title deeds at the notary. Charges for this can be high (don’t be surprised if you’re charged 0.5% of the cheque’s value) but are negotiable. Check with your bank before you order a banker’s draft to avoid unpleasant surprises.

    Mortgage fees

    If you’re using financing to buy your property in Spain, you’ll need to include bank charges in your budget. You’ll have to pay for a valuation – this usually costs around €500 – plus the mortgage costs themselves. These depend on the type of mortgage and the amount loaned, but as a general rule, expect a fee of 1% of the mortgage value.
    To find out more about the process of buying a property in Spain, click here. Link to buying process general

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