With the ever increasing popularity of buying property in Spain it is important that you prepare carefully for your new real estate venture by calculating the relevant finances that will enable you to be in a position to purchase your Spanish property before you attend an inspection trip. This will determine your budget to buy and allow you to put a reservation on the house of your dreams.
Here on our website and in all our brochures you will see Spanish property prices quoted in Euros with an approximate calculation of how much that property would cost you when converted into Sterling. This is of course a variable rate and one that we endeavour to keep as current as is possible. However you also need to consider the additional costs of purchasing a property in Spain .
These costs are approximately 10-12% of the value of your purchase. Below is an example of the additional costs that you can expect to incur when buying a property in Spain.
IVA 7% (Spanish Equivalent to VAT)
Payable as part of the payment structure - or on completion of the property as detailed in the contract (7% of the declared value of the property).
Administration Fee (£275)
This is payable after you have signed your contracts with the builder. It is to be paid to Atlas Head Office.
Lawyers Fees
Payable on completion of the property, making searches, preparation of the Escuritura (Title Deeds) and translation before a public Notary. inc. VAT.
Notary Fees
Preparing the Escritura, registering the Title and stamp Duty.
Land Registry Fees
To register the property at the relevant Land Registry Office.
Connection charges
Water, Electric, Drainage etc
Plus Valia
Tax levied by the Town Hall in accordance with Spanish Law, the vendor is liable to pay the Plus Valia Tax. However on new build properties it is paid by the purchaser.
Transmission Tax
Spanish Government Tax of 0.5% of the declared value of the property due on the registration and documentation of the Escritura.