If you've been inquiring about buying property in Spain, everyone knows it's the ideal place to purchase. From the delicious foods to the tranquil ambiance, Spain's culture is perfect for those looking to purchase a second home.
But what does it cost? Is it even affordable due to its high tourism costs?
If you're looking to purchase a property in the Costa del Sol this year, there are some costs you must keep in mind. Let's talk about it.
Buying Property In Spain In 2018
Whether you're buying property in Spain or selling your current property, there's one common denominator - it costs money. But as a buyer, what kind of fees are you looking to paying. Let's take a look.
As a buyer, you're going to be responsible for the costs of drawing up the deeds. These fees are based on the selling price. If you're inquiring about how much you're going to pay out of pocket for notary fees, be sure to consult our our recommended legal contacts.
Property Registry Costs
Another fee that you must keep in mind when buying property in Spain is the property registry costs. These specific fees vary on the municipal and property areas. Normally these fees cost anywhere between 400-700 Euros.
Think of a Gestoria kind of like a bookkeeper for real estate. This person/agency is responsible for handling all of the legal documents involved in the sale. From tax payments to properties and mortgages, this expert usually asks for about 1% of the selling price.
Property Transfer Fees/Taxes
These fees vary from buyer to buyer. If you're purchasing second-hand property, you're looking into paying a property transfer fee. If you're buying a newly built home, you're going to pay VAT or IVA of about 10%.
Just like the aforementioned fees, these property transfer fees also vary from region to region. For example, in Valencia, Catalonia, and Galicia the property tax is 10%. In the Canary Islands, it's about 6.5%.
Property Valuation Costs
If you realize you need a mortgage after doing your research on buying property in Spain, there's going to be a property valuation tax that is going to have to come out of pocket. Also known as an appraisal, buyers are looking into paying around 800 Euros for this fee.
Newly Built Property Fees
Even though second-hand homes are more popular, purchasing newly built homes is on the rise. During the process, you're going to pay the developer an IVA or VAT of 10%.
In addition, keep in mind that you're going to have to pay taxes on documented legal acts. In Spain, these documents are referred to as IAJD.
Looking Into Buying A Second Home In Spain? Let Us Help!
Whether you're looking into renting or buying property in Spain, we want to help. Here at Right Casa, we've built a positive reputation for finding the perfect property for all of our customers.
Don't believe us? Check out our testimonial section and find out why we are one of the highest rating agencies in the area.