You have found a suitable house in Spain and agreed with the owner about the price? However, buying property entails other expenses, which are not always taken into account. In this article we consider in detail the main items of expenditure in buying a home in Spain.
1. The object evaluation
This procedure is mandatory when applying for a mortgage loan. Anyway to know the real market price of the purchased house or apartment is in the buyer’s interests. According to experts, the cost varies between €160 and €447, the average price will be €300.
2. Notary services
The duty of the notary is the monitoring of the transaction legality and fulfillment of obligations by both parties. In addition, the state notary makes the contract of purchase and sale.
Notary fees depend on the value of the property. For example, when buying an apartment in Barcelona for €200 000, the notary will receive for their services €530. On the websites of the agencies you can find calculators notary fees, but they provide only an approximate figure.
The seller can pay up to 70% of the amount of notary expenses. But in different regions may apply different rules. For example, in Navarre, the notary fees are divided equally between the buyer and seller. Most common practice is when notary services are fully paid by the buyer.
3. Registration fee
This fee also falls on the shoulders of the buyer. The final amount depends on the tariffs set by the administration. If you buy an apartment in Barcelona for €200 000, contribution to the Registro de la Propiedad will be €260.
4. The services of a real estate agent
He prepares all documents for sale, including for payment of taxes. Each specialist has his prices. Again, if we go back to our apartment for €200 000, mediation will cost about €360. If you have enough time and experience, you can do purchase independently, however, the presence of the agent significantly reduces the time and keep you from annoying errors.
5. Taxes
Spain has different taxes when buying a new and secondary housing. So, when you purchase a new home, you pay VAT at 10% of the value specified in the contract. In the case of buying a property on the secondary market shall be paid a tax on the transfer of ownership (ITP). Its rate varies from one autonomous community to another from 6% to 10%. For Catalan it is 10%, for Madrid – 6%.
For mortgage loan must be paid AJD – from 0.75% to 1.5%. Catalan Is 1.2%. If we go back to our Barcelona apartment, then the AJD will be €1 920.
Total:
1. The object evaluation - €300
2. Notary - €530
3. The registration fee - €260
4. Agent - 360
5. VAT (assuming this is a new apartment) - €20 000
6. AJD (if mortgage) - €1 920
Total when buying a new apartment for €200,000 in Barcelona, the related expenses will be €21 450 with the mortgage and €23 370 without a mortgage.
Text – Alena Eliseeva, ee24
Photocredit Depositphotos.com