Apartments for sale in Spain at X euros - additional costs of buying property in Spain
When you consider buying property in Spain you should be aware that additional legal and tax costs can add around 10-12% to the price and budget accordingly. Some Spanish estate agents may not be so quick to tell you this - particularly if you are considering buying one of their apartments for sale in Spain!
Initial costs - buying property in Spain
Okay, so you have been searching through apartments for sale in Spain and you think you have found the right one. The first thing you need to pay is a non-refundable deposit, usually set at 10%. When this is done a date will be set, generally within 28 days, for contracts to be signed in front of the Spanish notary. It is at this stage the balance must be paid.
If buying property off-plan, you would pay a reservation fee and make pre-arranged payments at particular stages of the building process.Spanish estate agents, lawyers and fees relating to the sale of property in Spain
Fees for Spanish estate agents, lawyers, surveyors etc. are usually paid by whoever contracts their services, which normally means the buyer.
An approximate budget for legal fees would be between 0.6% and 1% of the sale price plus charges for any official documentation.
The buyer usually has to pay the notary fees, which usually amount to between €400 and €800. You would also need to pay property registry inscription fees amounting to 65% of the notary fee.
Taxes relating to the purchase of property in Spain
Buyers would usually be expected to pay:
- Transfer Tax on resale property in Spain at 7% of the new title deeds value; or
- IVA (VAT) at 7% plus 1% stamp duty on new property in Spain
- Capital Gains Tax on any increase in title deeds value
- Plus Valia - a tax which is charged on the transfer of property in Spain
Remember to have all paperwork checked thoroughly by a lawyer specialising in Spanish property law before signing. Be especially vigilant for sellers using the contract to attempt to pass off any costs, such as plus valia, onto you.
If you are looking at apartments for sale in Spain and your Spanish estate agent tells you they are priced at €100,000 you should allow for the following costs:
Non-refundable deposit - €10,000
Lawyers fees - €1000
Remainder of property - €90,000
Notary fees - €800
Registration fee - €520
Transfer tax - €7000
Total - €109,320
In addition you will need to pay for Spanish estate agents, surveyors and any other services you contract.
Impact of euro on the price of apartments for sale in Spain
Fluctuations between the euro and other currencies can make your property in Spain a good deal cheaper or more expensive in a short period of time. Spanish currency issues should not be taken lightly.
Apartments for sale in Spain always have additional costs attached which you should be aware of. You should always keep this in mind, from your first dealings with a Spanish estate agent to completing the deal to buy your property in Spain.
