The costs for buying a property in Spain can be broadly taken as 11% of the declared price. Quite often it is less than this but if you budget for this figure you are unlikely to get any nasty surprises.
The additional costs involved, including taxes and stamp duty, are summarised below. These will vary according to the type of property and region.
New Properties
VAT (Impuesto sobre el Valor Anadido / IVA). 7% plus the stamp duty of 1% of declared price.
Resale Properties
Transfer Tax (Impuesto de Transmissiones Patrimoniales / ITP). Usually 6% or 7% plus 0.5% tax for transferring property to your name.
Lawyers Fee
Normally 1% of purchase price + 16% IVA.
Notary Fees
In the same way the purchase has to be inscribed in front of a notary, the mortgage deed must also be inscribed and the notary will make a charge for this.
Law establishes these costs as a percentage of the mortgage liability and as such 67.61 euro plus between 0.0338% to 0.023%.
Property Register Fees
These costs also are established as a percentage of the mortgage liability and are 18.03 euro plus between 0.131% to 0.015%.
Bank Arrangement Fees
Normally between 1% to 1.5% of the mortgage amount.
Valuation Fees
Paid to bank. Based on sliding scale and calculated as a percentage of the valuation, it is normally in the region of 300 to 700 euros. For larger properties the rate can become 1% of the valuation.
A Note on Currency Exchange
When planning your Spanish purchase it is vitally important to plan the timing and movement of your deposit monies from the UK to Spain – maximizing exchange rates makes your money go further.
For further information see our Maximising Your Deposits page
With over 30 years experience and offices in both the UK and Spain we are uniquely placed to assist you with your purchase and any mortgage requirements you may have. We also have access to most banks and building societies offering mortgages in either Euro or Sterling.
Please Contact us or fill in our Online Form for a Competitive Quotation.
