Spain is the number one country in Europe for holidays and the dream of any person or family who wants to start building a solid wealth.
With this article we explain in detail the costs associated with any purchase of real estate in Spain. We are also going to inform you about the general maintenance expenses of the property once you become the new owner and that are mandatory to keep up to date.
What are the costs of buying a property in Spain?
First question is:
- Is it a new-build property?
- Is it a resale?
Depending on your answer the cost will be slightly different but will be around 14%.
1. Costs associated with the purchase of a new build property.
For new-build properties, the expenses that must be assumed in the buying process are as follows:
- Value Added Tax (VAT): This is a tax that is calculated on the total value of the property. VAT in our area is 10% of the price of the house.
- Stamp Duty: The tax rate depends of the province where the property is located. At Alicante province, it is payable at 1,5% of the purchase price of the property.
- Notary fees: Completion in Spain will be done at the Notary office, where purchase title deeds are signed, final payment is done and keys received. If you want to know how much is the notary bill for the purchase of your home, contact us and we will calculate an estimate.
- Property Registry expenses. The property registry in Spain is an organization that keeps a record of who owns what property. If you want to know how much is the notary bill for the purchase of your home, contact us and we will calculate an estimate.
2. Costs associated with the purchase of a resale property in Spain.
The expenses associated with the purchase of a used property in Spain are as follows:
- Notary fees: Completion in Spain will be done at the Notary office, where purchase title deeds are signed, final payment is done and keys received. If you want to know how much is the notary bill for the purchase of your home, contact us and we will calculate an estimate.
- Transfer Tax (ITP). This tax varies depending on the province where the property is located. In our province it is 10% of the price of the house.
- Property Registry expenses. The property registry in Spain is an organization that keeps a record of who owns what property. If you want to know how much is the notary bill for the purchase of your home, contact us and we will calculate an estimate.
Other purchase expenses
- Fiscal and legal advisor: Each purchase needs to be prepared in a personalized way. Your fiscal and legal advisor in Spain will analyze the property documents, give you advise about your personal documents needed for buying and how to obtain them, supporting along the purchase process, solving all your questions you may have to ensure you a smoothly and secure the purchase transaction.
- Spanish mortgage costs: This is only an additional cost if you finance the new /resale property with a Spanish mortgage. You will have additional costs, like valuation, opening fee in some cases, … Your Spanish bank will send you their bank costs and also the mentioned purchase expenses. For more information you can also read our article: https://oremfi-by-aserpro.com/how-to-get-a-mortgage-in-spain/
Ongoing property maintenance expenses
- Spanish bank expenses
- Annual local tax (IBI). This is a yearly tax paid to the Council where the property is situated
- Payment of utility bills and community fees
- Annual payment of non resident tax (IRNR) The IRNR (Income tax non resident), is a direct tax for the benefit obtained in Spanish territory by individuals and not resident citizens in Spain, although the property is empty
- Rental tax in case you rent the property purchased
- House insurance
If you are interested in buying a property in Spain and want more detailed information, please download our free guide “How to buy your property in Spain safely” and contact us by email at info@oremfi-by-aserpro.com, by phone at (0034)965717175 or via the online form. Our experts will be pleased to advice you.
We hope to hear from you soon!
