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 8% IVA tax, which is paid to the government. On new build properties there is an additional 1% 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 – 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 (escritura).

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).

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

Call: (+34) 677 475 068

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