Costs of buying real estate in Spain
When you want to buy real estate in Spain, it is not only important to have a fairly good idea of your budget, you also have to be aware of the costs you will encounter during the purchase.
Generally, you will have to take into account a total of about 13% for a resale property and about 14,5% for a newbuild. This does include everything: notary fees, registration- and other taxes, stamp duty and the fees of a lawyer.
Below we will go through these items separately:
- Notary fees: Depending on the purchase price, stated in the official deed, their fee will amount to a sum between € 600,- and € 875,- . A notary holds a public office and so these amounts are regulated.
- Registration of the property: This is also regulated and, depending on the price of the property, the cost will be between € 400,- and € 650,- .
- Transfer taxes / VAT: 10% of the purchase price:
For newbuild this is VAT (IVA in Spain), for resale properties this is a transfer tax or ITP (Impuesto sobre las Transmisiones Patrimoniales). There are exceptions at lower rates, but these are extremely rare for 2nd residencies.
- Stamp Duties (Actos Jurídicos Documentados or IAJD):
These taxes are charged on new properties and they are calculated on the notary fee and on the registration tax.
Every autonomous community has its own rates. These are between 0,5% and 1,5% of the purchase price.
To buy real estate in Spain, you will need a NIE-number (Número de Identificación de Extranjeros) and a Spanish bank account.
Some real estate agents and service companies will charge your for this. Here at Z-Yachting & Golf-Estates, we will arrange this for you free of charge.
Purchase with a mortgage
When you buy real estate with a mortgage, you will also have to take into account the following:
- Valuation costs and administration costs:
To obtain a mortgage, the property will have to be valued. The average cost for a valuation would be between € 250,- and € 600,-.
Be aware that most banks will charge administration costs. These will of course vary from one bank to another.
- Registration taxes and notary fees:
Like the property itself, the mortgage too will have to be registered. Naturally, you will have to count with the applicable registration taxes and notary fees.