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.

These include:

    • 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:

105% 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..