At Smart Properties we try to make your approach to the Spanish real estate market as smooth as possible. Our advice is to listen to the needs and requirements which you may have.
Within our Real Estate Company, we know that when making such an important decision which involves the purchase of a property in Spain, we are clear in what information we need to provide to you. There are other expenses linked to the purchase of a property in Spain including initial and ongoing costs. Below, we explain more about what they are.
When buying a property in Spain, there are some additional costs linked to the purchase. Below, these are detailed for you:
1. Notary fees
When buying a property in Spain, it is law that the change of ownership has to be done in front of a Notary in the Notary´s office. The Notary will check all the information, ensuring everything is in place and fully legal and then sign, which then makes the property legally your own. You will also sign as well as the vendor to confirm the transaction. The public deed certifying the change of ownership and, although it is not compulsory to grant a purchase, it is advisable, since its effects are specifically regulated by law and, therefore, are more valid than the clauses included in the preliminary contract. To be regulated by law, all notaries in Spain charge the same for the same service, although these can make a discount of 10%.
2. Land Registry fees
The costs of registering the property in the Land Registry are not fixed and vary depending on the value of the property, their location and individual characteristics. The rates are approved by the Government, and they can be found in the Official Gazette and rarely exceed 1% of the agreed purchase price.
There are some taxes which have to be paid when buying a new property in Spain, whether it be a new build or a resale:
4. Costs of a valuation
If you are applying for a mortgage, then after the deposit payment has been made to remove the property off of the market and start the legal process, the bank needs to make a valuation of the property, to identify if price that fits their value. The bank will lend a % of the purchase price or valuation, whichever is lower. This valuation has an approximate cost of between 100 and 400 euros, depending on the type of house and its square metres.
With all of the legal side of the purchase, your solicitor will provide you with all the information which you need and give a breakdown of costs prior to completion. These costs, are estimates (apart from the IVA) and are always slightly higher so again, you don’t have any problems once you have completed.