Financial Advice

New Wave Villas can help in all aspects of buying a property in Spain, assisting with the various financial decisions that need to be made and looking into 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 for buying a property in Spain.

Basic financial costs when purchasing a property:

IVA tax - On every property purchase in Spain, on top of the actual price of the property, the buyer will also pay 7% IVA tax, which is paid to the government. On new build properties there is an additional 10% new build tax to be paid.

Legal fees – the fee’s that lawyers charge can vary depending on their fee structure and on the type of purchase and amount of work involved to oversee the purchase, though most fee’s range between 1,200 euros and 1,800 euros – see section on legal advice.

Notary and 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 above come to approximately 10% over and above the price of the property. However, if you also require a mortgage to fund the purchase, you will incur some further costs as follows:

Mortgage costs – Under new laws most banks are now covering the set up fee for mortgages, though buyers will pay for the bank valuation. Different banks are offering different deals and rates so buyers should contact a range of banks to establish the best deal for the each individual situation. Generally banks will offer a maximum 60% mortgage to non residents and a maximum 70% to residents though again, this can vary bank to bank. Buyers will need to prove a regular income to qualify for mortgage approval and supply all the standard paperwork, bank statements, wage slips, annual income returns that would be required for a UK loan. The mortgage process can take 8 to 10 weeks so this needs to be considered when starting the process.

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 12% (with a mortgage).

If you have any questions, please do not hesitate to contact us

Call: (+34) 677 475 068

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