When you buy a property, with or without mortgage, it is generally recommended to have an extra money saved to meet the additional costs like : taxes on the purchase, costs of the notary deed, the land registry or valuation of valor castral. It is advisable to have a savings about 13% of the property value to successfully meet these additional costs.
When you decide to purchase a property you need to bare in mind that you have to pay not only for the house but also for numbers of obligatory expenses related to the sale.
- Notary fees Notary fees are regulated by the government and depend on the price of the property. As a general guide, it says, that is up to 0,5% of the property price plus VAT. In the notary you have pay for two scriptures, purchase and mortgage. For example, housing costs 250,000 euros – the deed sale would be about 1200 euros. If the mortgage is 175,000 euros, writing mortgage would be about 900 euros.
- Property registration It will be a charge about 500 – 600 euros to register property if you take the example of a house bought for 250,000 euros. When you purchase the property with a Spanish mortgage, you will have to register it as well ( and pay a charge)
- Taxes There are two different taxes depending on whether the home is new or second hand. – New home: the tax on this property is the 10% VAT (IVA – Imbuesto sobre el valor Anadido. Therefore, in a house of 250,000 euros, 25,000 euros the tax will. For commercial properties and car parking spaces the tax is 21%. – Used home: the taxation such property is the property transfer tax (ITP) – Impuesto sobre Transmisiones Patrimoniales and varies according to the autonomous region but ranges between 5% and 10% of the deed price (between 12,500 and 25,000 euros for example above). You should remember that you can pay a higher payment if the you the home is worth more than you paid for it. The estate of each region has tables of minimum prices and minimum ITP them calculated that a person has to pay when buying a home.
- Stamp duty (Impuesto sobre Actos Juridicos documentados) – it also depends on the region, and it’s between 0,5% -1% plus VAT. It will be also necessary for your mortgage.