What are the costs of buying in Spain?
Buying a home is an investment in our lives. It is important to calculate all expenses have. In this article we report on the various costs of sale in Spain.
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In our real estate know that when making such an important and which involves the purchase of housing investment, we must be clear what that entails. Expenses, as you know, not just include the price of the property, payment of the mortgage (if any) and expenses arising from the sale. About the latter, then we explain what they are and what they are.
Expenditure preliminary to the sale
1. Costs of appraisal: When applying for a mortgage, after the payment agreement or transaction, the bank needs to make an appraisal of the property to know what is the price that fits their value. Pricing has an approximate cost of between 100 and 400 euros, depending on the type of house and its square meters.
2. notary fees for the preliminary contract. At the time of making the sale it is very normal that before writing, a preliminary contract between seller and buyer is signed. It is a private contract that ensures the operation, as it requires both parties to meet the covenants contained therein, provided they are within the law. This, while not mandatory, is very common. Enlist the help of a notary for these cases will prevent future problems.
Expenses of the transaction
1. Writing the notary public: The public deed certifying the change of ownership and, although it is not compulsory to grant a sale, it is advisable, since its effects are specifically regulated by law and, therefore, are more valid than the clauses included in the preliminary contract. To be regulated by law, all notaries in Spain charge the same for the same service, although these can make a discount of 10%.
2. Tax. This is different taxes on the sale of homes. We list the main ones:
- VAT: Only when it is a new building housing and purchase directly from the promoter. In this case, buyers have to pay 10% tax on the value of trading.
- Transfer Tax: Only if it is used housing. If it is a resale property this must pay the taxes on transfer of assets, which is between 5 and 8% of the deed price, depending on the autonomous region.
- Stamp Duty Tax: It pays for signing at the notary and register in the Register every deed. Its base the calculation on mortgages is the mortgage liability and, although the amount varies depending on the type of housing and the Autonomous Community, ranging from 0.1 to 1.5%.
- The Tax on the Increase in Value of Urban Land, formerly known as local goodwill, taxes the increase in value as a soil experiences from acquisition to transmission. Unless both parties agree to pay half, this tax is borne by the seller, which has 30 working days from the date of the deed to file the tax return or settlement declaration to the paying office of the City.
3. Registration in the Land Registry
The costs of registration in the Land Registry are not fixed and vary the value of the property, depending on their location and characteristics. The rates are approved by the Government, they can be found in the Official Gazette and rarely exceed 1%.
In the event that this inscription does an agency, you must pay the fees of the private agency. Contrary to what happens with notaries, managers rates are not fixed and, therefore, should be well informed before hiring one.
These are the costs of buying in Spain. Do you have more questions? Contact Mevilla CB, your real estate agents in Cabo Roig. Happy to Work out all the information on which you have doubts. Contact us today.