In additional to the sale price of your Spanish property, you will need to budget for additional costs that are associated with purchase. Most, if not all of these costs are paid when you complete on the sale.
Now, I can’t stress enough that this merely a guide for costs. Your agent and/or lawyer will be able to give you a much more precise figure once you have identified a property that you would like to buy. As a general rule you should budget 10 – 12% on top the sale price if you are not taking a Spanish Mortgage and 12-13% if you are arranging a mortgage through one of the Spanish banks. The additional costs will be made up of legal fees, notary fees, land registry, stamp duty and VAT (in Spain this is called ‘Impuesto sobre el Valor Añadido’ or ‘IVA’)
A guide breakdown of the purchasing costs and expenses, as follows:
Notary Fees
These are calculated on a scale of fees which are related to the property purchase price.
Property Registration Fees (Land Registry)
These are normally around 40% of the Notary fees.
Legal Fees
This of course depends on the Lawyer you use. Lawyers fees will average around €2500 but may be charged as a percentage of the purchase price.
Mortgage Legal Costs.
You will need to advise your agent and lawyer if you intend to use a mortgage to complete the purchase of your property as additional charges are usually incurred from the bank.
Administration fee
This is currently €495
Water/Electricity Contract.
A is fee charged by the utility companies for the set up of the water/electricity contracts. This fee will vary from area to area but should be in the region €420
Transfer Tax (Resale Properties only)
This will be 7% of the purchase price
IVA Tax (New properties only)
This is the Spanish equivalent of VAT and will be 7% of the purchase price
