Fees and Purchase Expenses

The costs - fees, taxes and solictors bills - when buying in Spain are higher than you are used to in the UK. It is important that you have a clear understanding of what fees need to be paid and what a reasonable amount is otherwise you will not be able to check that you are not being overcharged.

So how much will it cost?

If you are paying for your property in cash you should budget for an extra 10% of the cost of the property to pay for all the fees. However if you are buying with a mortgage you will need to budget for and extra 3 % (13% in total ) to cover the arrangement and legal fees involved.

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Where does it all go?

 

Fees
Solicitor = around 1%
Notary fees = €300 - €1000 The fees charged by the Notary are regulated by law and vary according to the amount of the transaction.
Registry Office = This charge is regulated by law and usually amounts to roughly 30% of Notary fees.

Mortgage
Valuation by the bank = €150 - €1000
Arrangement fees = 0.75% of the mortgage amount, min €700.00
Notary fees = €300 - €1000(vary according to the type and location of the property you buy)

Tax
You pay tax on the declared value of any property.
New builds attract VAT = 7% (this cost is very rarely included in the advertised price of new developments)
Second-hand home or resale property = 1% (0.5% in some areas) for Documented Legal Acts(DLA).
When the property is purchased from a private individual, the amount payable for “Transfer Tax” is 7% (6% in some autonomous Communities). There is also a Municipal Capital Gains Tax “Plusvalia” on property, which varies depending on the Council of the location of the property you are purchasing. The seller should normally pay this charge.


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