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Costs of Buying a Property in Spain

For properties situated in Andalucia
purchase costs

Costs of Buying a Property in Spain

Costs of Buying a Property in Spain

Before you decide to buy a property in Spain, you ought to know exactly what costs are involved, so you can work out what would be a reasonable purchase price, according to your budget.

In general, you will need to allow between 10% and 15% of the purchase price for the expenses.

Although it will be helpful to see a couple of examples in detail, you need to know that the most relevant purchase cost is the transfer tax, currently rated at 8% for properties up to 400.000 Euros (for properties in Andalusia). If you buy a brand new property directly from a developer, you will not pay the Transfer Tax, but a 10% VAT + 1,5% Stamp Duty, so the total tax will be 11,5%.

Let’s see a couple of samples for property purchases without mortgages, with a full breakdown of all the costs involved.

SAMPLE 1. Second hand apartment in Mijas (Andalucia) with a purchase price of 190.000,00 Euros

  • 8% Transfer Tax:…………………15.200,00
  • Lawyers fees (1% + VAT)……….2.299,00
  • Notary Fees:……………………………700,00
  • Land Registry Fees………………….400,00
  • Home Insurance………………………250,00
  • Various (bank charges, etc)……….151,00
  • TOTAL……………………………….19.000,00  Euros ( 10% of the purchase price)

SAMPLE 2 Brand new apartment in Marbella (Andalucia) with a purchase price of 190.000,00 Euros

  • 10% VAT…………………………….19.000,00
  • 1,5% Stamp Duty…………………..2.850,00
  • Lawyers fees (1% + VAT)……….2.299,00
  • Notary Fees:……………………………700,00
  • Land Registry Fees………………….400,00
  • Home Insurance………………………250,00
  • Various (bank charges, etc)………151,00
  • TOTAL……………………………….25.650,00  Euros (13,5% of the purchase price)

Other possible costs related with the purchase of your property in Spain, will be the initial fees for the water and electricity supply contracts. This depends of the type of property and the supplier company. Sometimes, before you are able to arrange these contracts, you may be requested to carry out some modifications to the electricity and water installations in order to comply with new regulations, especially if the property is quite old. This can be quite expensive for older properties.

Please be aware that if you are thinking tin taking out a mortgage in Spain, you should add  approximately a 5% of the amount of the loan to your expenses .

Finally, if you are thinking in buying a property in Spain, please enjoy reading this

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