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Buying procedure
Just like in the UK some areas of Spain are more expensive than others, so it is
important to consider what the property is to be used for i.e. is it a holiday home
for just a few weeks? Are you planning to retire and live in it? Is it for investment?
Do you want a pool or a large garden? We can help you establish what's available
and the prices you should pay in the areas of your choice.
We can provide a wide selection of properties and help with local information and
may also be able to source your ideal property even though it may not be listed
with an agency.
Purchasing Costs - It is normal that 10% of the declared purchase price will
be required to cover costs and taxes, which is broken down as follows:
Transfer Tax
On a resale property this is 6% while purchasing a new property incurs 7% IVA (VAT),
plus a further 1.5% stamp duty.
Notary Charges
Legislation fixes these charges on a scale with a minimum of 300 Euros, however
this figure could go up depending on the services you require.
Solicitors Fees
The purchase price will determine the costs, as a guide of 60,000-120,000 Euros
will cost 6000 Euros.
Property Registration Fees
This is a legal procedure whereby the property is registered in your name, costing
around 120-300 Euros.
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It is clear in a Spanish property transaction which party
is liable for which fees:
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The Seller is liable for:
1. The Plus Valia Tax, which is a local tax levied on the
increased value of the property since the previous transfer
of ownership.
2. Notary fees incurred for the Escritura Publica.
3. Estate agents fees.
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The Buyer is liable for:
1. The IVA tax otherwise known as the transfer tax
2. Fee payable for registering at the property registry
3. Notary costs for the Escritura Publica and any subsequent costs for further copies
of this.
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WE CAN HELP YOU WITH AN ENGLISH SPEAKING SOLICITOR WHO WILL ACT
ON YOUR BEHALF WHEN PURCHASING A NEW / RE-SALE PROPERTY
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Purchase costs example on a property valued at 100,000 Euros
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Generally the total costs involved in purchasing a Spanish Property
amount to approx. 10% of the price of the property you are purchasing
over and above the purchase price.
The 10% is made up as follows:
IVA (Spanish equivalent of VAT @ 7%)
Stamp Duty (On new properties @ 1%)
Legal Fees (Spanish Lawyers @ 1%)
Notary Fees (approx 0.5%)
Land Registry & Gestoria fees (approx 0.5%)
Total
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7000
1000
1000
500
500
10,000
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Information Relating to Purchase
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Individual Purchasing a New Build Property
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Each developer has their own payment terms that may vary from the example below
however this may prove a
guide to typical costing.
Procedure
Find Suitable Property
Sign Purchase Contract
Property Being Built
Property Completed
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Cost in Euros
1,000 (holding fee)
10% of Purchase Price
30% of PP over the term of the build in stage payments
60% balance due often by Builder’s mortgage
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100,000 Euro Example
1000
9000 (10% less holding fee)
1875 Euros / mth
60,000 balance
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Individual Purchasing a Resale (Second Hand) Property
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Each developer has their own payment terms that may vary from the example below
however this may prove a
guide to typical costing.
Procedure
Find Suitable Property
Sign Purchase Contract
Down Payment
Completion
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Cost in Euros
2,000
10% of PP
90% of PP
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100,000 Euro Example
2,000
8000 (10% less down payment)
90,000
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Annual Running Costs – Non-Resident Property Owner
• Wealth and Income Tax are payable once a year and are
calculated as a percentage of the property value
– Wealth Tax = 0.2% of property value
– Income Tax = 0.5% of rateable property value
• Local Rates are payable between August and October 42 - 210 Euros / year
• Fiscal Fees are payable yearly at 105 Euros
• Community (Urbanisation fee) is usually paid in 1 or 2 payments per year
350 - 490 Euros
• Electricity Bills come every two months and the minimum charge is around
21 Euros
• Water Bills arrive every 3 months and the minimum charge is around 14 Euros
• House Insurance is due once a year depending on the date of your purchase
contract.
The cost depends on size and value of property – approximately 420 Euros
It is recommended that a deposit of approx. 1000 Euros per year is paid into your
bank account to cover these charges.
Quick Check Currency Converter
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Euros to Pounds
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Euros
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Rate1.4
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1.45
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1.5
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1.55
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€80,000
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£57,142
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£55,172
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£53,333
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£51,612
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€100,000
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£71428
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£68,965
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£66,666
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£64,516
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€150,000
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£107,142
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£103,448
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£100,000
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£96774
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€175,000
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£125,000
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£120,689
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£116667
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£112,903
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€200,000
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£142,857
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£137,931
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£133,334
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£129,032
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€250,000
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£178,571
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£172,413
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£166,667
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£161,290
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€300,000
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£14,285
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£206,896
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£200,000
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£193,548
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Pounds to Euros
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£
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Rate1.4
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1.45
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1.5
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1.55
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£80,000
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€112,000
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€116,000
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€120,000
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€124,000
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£100,000
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€140,000
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€145,000
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€150,000
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€155,000
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£150,000
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€210,000
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€217,000
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€225,000
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€232,000
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£175,000
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€245,000
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€253,750
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€262,500
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€271,250
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£200,000
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€280,000
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€290,000
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€300,000
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€310,000
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£250,000
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€350,000
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€362,500
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€375,000
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€387,500
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£300,000
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€420,000
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€435,000
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€450,000
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€465,000
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