Buying in Spain, what are the costs?
There is a difference in buying in Spain at a normal real estate agent or buying in Spain with an estate agent like us, we sell bank owned properties and we do this with a 70 up to 100% mortgage, or even with 105% when possible.
So what are the usual costs to buy in Spain?
The costs involved in buying a property in Spain depends on a few factors: 1, is it a new build or resale property, 2, the actual purchase price of the property and 3, whether you are a cash buyer or buying with a mortgage.
You should generally allow 10-15% of the purchase price to cover all taxes and fees.
- For a resale property, transfer tax (ITP) needs to be paid; this is usually levied at 8 or 10% across all of Spain
- Notary fees
- Land Registry fees
- Valuation fees are around €350
- Stamp duty is 1.5% of the mortgage deeds
- Lender’s commission is typically 1% of the capital loans (if you are buying with a mortgage)
- VAT of 10%, instead of ITP if the property is new-build, 4.5% in the Canary Islands.
- Stamp duty for a new build is around 1.5% of the purchase price.
So imagine you are buying a house in Spain and it would cost € 100.000 and you need a mortgage:
At a normal real estate agent it would cost:
Mortgage of 70%
30% deposit, : € 30.000
10% taxes or IVA: € 10.000
5% costs (notary etc) : € 5.000
in total: € 45.000
Of course, there would be costs for a lawyer but roughly these costs would cover the purchase.
Now if you would buy one of our properties, the same price so € 100.000 and you need a mortgage:
0% Deposit € 0,00
10% taxes or IVA : € 10.000
5% Costs (notary etc) € 5.000
-5% in the mortgage +€ 5.000
in total : € 10.000
So buying with us would save € 35.000, that is a big difference because our rates are very low as well.
We would love to help you with finding your Spanish property, try us..