When you are buying a property in Spain you need to know that in total your costs of buying the property will be up to around 10% of the purchase price.
If you are obtaining a mortgage, you can of course include these costs in the mortgage amount you request, providing this remains within the maximum percentage available against the property value and on your income.
EXAMPLE OF PROPERTY PURCHASE EXPENSES
The following is an example of expenses, incurred when purchasing and owning a property in Spain.
This estimate of 10% includes:
The notary charges according to a fixed scale depending on the size of the property and its price, and is likely to be around of £500. The fee for the registration will be around half of the notary’s fee). For example On a property valued around £100,000) the notary’s fee would be around £500), the registration fee around £300), and the handling fee (around £50)- in this case the three together amount to 0.85 % of the property value.
If you were obtaining a mortgage, there would be the same fees to pay for registering the mortgage deed, although the amounts will be less, as the mortgage will be less than the value of the property.
In addition, Stamp Duty is charged on mortgage deeds of 1%.
The plusvalía is based on the valor catastral of the land (i.e. not on the value of the building), and is levied on the increase in this value since the last sale.
Your lawyer will be able to find out exactly how much the plus valía will be from the local municipal tax office, which keeps records of land values. (This should not be confused with the capital gains tax which is payable by the vendor).
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