13 April 2016
Before buying property in Spain, it is a good idea for you to obtain clarity on available financial information and your possibilities. It is important to have good information about all financial issues that are involved in the purchase of a property in Spain.
There are a number of fees and taxes which will be payable on any property that you purchase in Spain. These will vary for each property however the general likelihood is that 10% of the purchase price will be needed to cover all costs. In this post, in Brilliant Real Estate we offer a quick guide on the main costs when buying a property in Spain.
As well as the cost of the property, the buyer will be liable for transfer tax which at present is 6% on a second-hand property, and 10% of VAT on a new one, plus 1/2% stamp duty. The property registration office will charge you a fee to change the new deeds into your name. This is usually around 300€.
There will also be notary charges for copies of the 'escritura publica'. The charge is on a scale depending on the contract price. In total you should allow 10% of the purchase price for costs. It is often the case that the buyer also pays the sellers fees. Check this at the point of enquiry and it is often possible to negotiate. Banks may also charge an opening commission for mortgage loans.
The local town hall charge IBI which is an annual real estate tax. The previous owner is obliged to give you copies of previous bills. Community charges apply when you buy a property on a community development. These cover things like maintenance, swimming pools, gardens etc.
You will also be liable for a wealth tax, payable annually and based on the value of the property and a property owners income taxes based on your income from the property. You should clarify these in detail with your estate agent at point of enquiry.
Brilliant Real Estate is here for both buyer and seller giving advice and services to help sellers maximise the value of their property – and to help buyers manage their property transactions smoothly. Our international team is prepared to help you avoid common obstacles, tensions and risks of the property purchase process. We attend our customers in English, Dutch, Russian, Spanish, French and German providing a tailored and personalised service.
Take a look at the complete portfolio of properties that Brilliant Real Estate offers you. You can find Resale properties as well as New Build ones. Despite the fact we mostly work in the dramatic area of the Costa Blanca North in places such as Moraira, Altea, Calpe, Denia, Javea, our catalogue also includes marvellous villas in other places in Spain as Marbella, Ibiza and Mallorca.
Moraira (Moraira · Alicante)
Sol Park (Moraira · Alicante)
Javea (Jávea · Alicante)
Benimeit (Moraira · Alicante)
BOCAIRENT (BOCAIRENT · Valencia)
Villotel (Moraira · Alicante)
Cumbre Del Sol (Benitachell · Alicante)
Finestrat (Finestrat · Alicante)
Moravit (Moraira · Alicante)
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