Are you dreaming of buying a property in Spain? It’s a great way to start a new life in the Mediterranean climate and enjoy the rich culture the country has to offer. But before you jump in, it’s important to understand the costs associated with purchasing a property in Spain.
Here are some tips for budgeting for your property purchase in Spain:
• Make sure you have a clear idea of what you’re looking for – your budget and the features you want in a property.
• Get pre-approved for a mortgage if you’re considering financing your purchase.
• Research the local real estate market to make sure you’re getting a good deal.
• Consider hiring a local real estate agent to help you find the best deals.
• Factor in additional costs such as legal fees, taxes, and insurance.
Now that you’re prepared to start looking for your new home in Spain, here’s a breakdown of the costs you can expect to pay when buying a property in Spain:
• Purchase Price: This is the amount you’ll pay for the property. It can range widely, depending on the size, location and other factors.
• Taxes: Transfer Tax is a one-off tax that must be paid when the property is transferred to the buyer. It’s calculated based on the purchase price, ranging from 8% to 11%. Plusvalia Tax is an annual tax that the seller must pay. It’s calculated according to the increase in value of the property since it was last sold.
• Notary Fees: These are the fees charged by a notary for handling the legal paperwork involved in the sale. They can range from €200 to €1,000.
• Registry Fees: These are the fees charged by the public registry for registering the property in your name. They can range from €200 to €1,000.
• Lawyer Fees: If you hire a lawyer to help you with the purchase of a property, you’ll need to factor in their fees. This can range from €500 – €2000 depending on what they include with their fees.
• Utility Connection fees: If purchasing a resale villa, the utility connections will already be done, but sometimes with bank-repossessed properties or new builds you will have a small connection fee depending on the company you contract.
Well that’s it! Buying a property in Spain is a great way to experience the Spanish lifestyle and make a smart investment. But before you dive in, make sure you understand the potential costs involved. With this guide, you’ll be better prepared to budget for your property purchase in Spain!
If you have any other questions about purchasing a property in Spain, please don’t hesitate to make contact with us