 New Wave Villas can assist their clients in all aspects of buying a property in Spain, assisting with the various financial decisions that need to be made and looking into the various options that are available to the buyer. Below we review the basic costs that a buyer should take into account in their financial calculations, when calculating a budget buying a property in Spain.
7% IVA tax - On every property purchase in Spain, on top of the actual price of the property, the buyer shall also pay 7% IVA tax, which is paid to the government. On ‘New Build’ properties there is an additional 1% new build tax to be paid
Legal Fee’s – most lawyers charge between 1% and 1.5% of the purchase price to oversee all legal aspects of the purchase – see section on Legal Advice.
Notary & Land Registry Costs – these are paid at completion and cover the cost of the notary to prepare the new title deeds on the new purchase, and also the cost to register the property in new owner's names.
These costs come to approximately 10% over and above the price of the property. However, if you also require a mortgage to fund the purchase, you shall incur some further costs as follows:
Mortgage Costs – the bank usually charge approximately 1% of the amount that you borrow when setting up a mortgage. A further 2% is paid in Mortgage tax against the amount of the loan. Finally the notary charges a small amount to prepare the paperwork relating to the mortgage, which is included in the Title Deeds {Escritua}.
So in total, when calculating additional costs on top of the purchase of the property, a buyer should add on a further 10% {without a mortgage} or a further 13% {with a mortgage}.
New Wave Villas can assist with all of the above process, and recommend that you now have a look at the ‘Legal Section’ and ‘Mortgage Advice’ section. |
