Buying Property : Buying Costs

MISSION STATEMENT

"To provide our customers with more information than our competitors on the best properties from the best developers in the Murcia region whilst providing a personal and professional service from start to finish making the process of buying through us enjoyable and stress free."

Cost of buying Property in Spain

You will need to allow an additional 10-12% of the purchase price to cover taxes and legal and professional fees. These are broken down as follows:-

VAT & Stamp Duty (IVA & Actos Jurídicos Documentados - AJD)
The VAT (known as IVA in Spain) is 7% on the price of the purchase. The Stamp duty (known as AJD) is fixed at 1% of the price of the purchase. Both VAT and Stamp Duty are paid by the buyer, and if any deposit is paid before completion of the sale, such deposit will be subject to VAT at the moment of payment of this deposit. In this scenario there is no transfer tax to pay.

Legal Fees
You are strongly advised to hire a lawyer to help you during the buying process. Your lawyer drafts and reviews contracts on your behalf and can explain all the legal and administrative issues you face. Your lawyer should also carry out any necessary due diligence (checking ownership claim of the seller, charges on the property, permits, etc.) and arrange all the required documents to complete the process (property registration, tax payments, etc.).

A solicitor - Abogado in Spanish - will charge you according to the service you require. This will vary according to the complexity of the purchase. Many charge around 1% of the purchase price in legal fees. Find a home in Spain work with several excellent qualified solicitors based in Murcia. More info

Mortgage costs
If you choose to buy with a mortgage then this will incur several additional costs. First there will be the property valuation that the mortgage provider will require before granting the mortgage. This is paid for by the buyer and can cost around €500. Then there will be the costs of the mortgage itself. This varies according to the provider, and even according to the particular branch. However there is usually some kind of opening fee of around 1% of the value of the mortgage. Finally a mortgage will increase the Notary expenses. Find a home in Spain can recommend the NatWest Spanish mortgage for those wishing to purchase for holiday or retirement. More info

Notary Expenses
Notary expenses are nearly always paid by the buyer and are calculated in relation to the purchase price declared in the deeds of sale. To be on the safe side you should calculate Notary fees as being 1% of the purchase price declared in the deeds of sale. In many cases however Notary fees are more like 0.5% (or less) of the price declared in the deeds.

Property Registry Inscription Fees
Expenses related to inscribing the sale with the land registry are also nearly always paid by the buyer, and are calculated in relation to the purchase price declared in the deeds of sale. To be on the safe side you should calculate 1% of the purchase price declared in the deeds, though once again it depends upon the property and the area, and the fee could be considerably lower.

Banking Costs
To pay for the property, you will more than likely need to write a banker's cheque. In order to do that, you will need to open an account in a Spanish bank and transfer money from the bank in your country. The cost of transferring the money can go up to 0,4% of the amount transferred. The banker's cheque will most likely cost 0,5% of its amount. Find a home in Spain work with HiFX who do not charge commission on money transfers. More info

Furniture Costs
Once you own a property you will need to furnish it. The cost of furnishing a property depends entirely upon what you want. However as a very general rule of thumb, a 2 bedroom apartment will cost around €20'000 to furnish nicely if you buy everything new.