Buying costs explained
Buying a property in Spain is not necessarily going to be the same as buying a property in your own country so we have put this guide together to try to guide you through the process and the costs of buying in Spain.
Naturally, the first thing is to find the property you are wanting to buy and then agree on a price. Once this has happened, you will need to make a deposit payment to secure the purchase and enter a purchase contract. We will be here to help you understand the contract and what your obligations are.
We will manage most of the paperwork for you and guide you through the process, but it is important to understand the additional charges that arise in Spain with the purchase of a property.
In the case of a resale property, you don’t pay IVA, but you will have to pay the Impuesto de Transferencia de Propiedad (ITP) or transfer tax, which is charged at 10% (Valencia Region). In the Murcia region, the ITP or transfer tax is 7%.
In most cases, notary fees are paid for by the purchaser although you may be able to negotiate this with the seller so they pay them
The amount payable for this varies and depends on the notary office used, and even on the number of pages in the title deeds! You should assume that the amount will be in the region of 0.5% of the purchase price.
This is another expense normally paid by the purchaser although this may also be negotiated with the seller. As with the notary fees, the amount can vary but allow 0.5% to cover it.
It is not essential to use a solicitor when purchasing in Spain but we would always recommend that you do. Their fees vary from company to company, some charge a fixed fee regardless of the purchase price, others charge a percentage of the purchase price. A basic service could cost in the region of 900 Euros.
It is important to get clarification from your chosen solicitor of exactly what their charge includes and ask for the cost of any extras.
You will also need to obtain an NIE number which is your registration in the Spanish tax system. It is easiest to make use of our services to obtain this.
If you are getting a Spanish mortgage you will need to allow for additional costs for the bank's setup fee and their official valuation of the property.
These can cost around 2 to 3% of the mortgage.
Taking all the above charges and fees into account, you should allow an additional 11% on top of the purchase price. If you are getting a Spanish mortgage, you may need to increase this to 12 or 13% to also cover the bank's fees. You also need to add on fees from your solicitor.