Costs of Buying a Spanish Home
The purchase of a house can be one of the most important and exciting moments in the life of a person, it supposes to put in common a space and a way of life. For some it can be a first home, for others a second home where to enjoy a vacation, and finally, possibly, for a real estate investment.
Taking into consideration the importance that the purchase of a home has, it is important to know clearly and in detail what processes and expenses may exist when carrying out the process.
In this article, we will address the expenses that must be considered for this important step. First, here in Spain we can differentiate 3 big blocks of expenses, that no matter how much we try not to think about them, they are mandatory. These blocks are, the notary, the taxes, and the registry. However, we can find with a last block, and not less important, which is the possibility of hiring the services of a specialist, in this case of a lawyer or adviser with a lot of experience in the real estate matter, to be able to carry out successfully these so difficult processes. We will now analyze each of these expenses.
- NOTARY Expenses
In first place, we find ourselves with the expenses of notary’s office. At the time of buying a house it is obligatory to carry out the operation with a notary that mediates with it. The expenses of notary’s office suppose in the great majority of cases between 0.2% and 0.5% of the value of the house, depending on its price. It is an expense that is regulated by the Law and as a rule, the buyer assumes this expense. However, it is an expense that can be agreed upon when buying a property.
- TAXES
In the Resale property, we are faced with the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales). This tax varies depending on the Autonomous Community where the property is located. As an example, in the Valencian Community it is 10% of the value of the property and 11% if it exceeds one million euros.
It is usually the most relevant expense when acquiring a second-hand property, and it must be taken into consideration when looking for a property. As we said before, this tax is not the same in the rest of Spain. Without going any further, in the Region of Murcia it is 8%.
We must add also, for this heavy tax, there are tax reductions for certain situations.
– An 8% for public protection dwellings or first homes that constitute the habitual residence. Also, for those young people under 35 years of age whose income does not exceed €30,000 individually or €47,000 jointly.
– 4% for subsidized housing that is going to be a primary residence. Also, in cases of large family or single-parent housing, provided that the income does not exceed the established income limit. Finally, when the home to be acquired is a habitual residence for persons with a degree of disability greater than 33%.
- REGISTRATION
The registration expenses constitute the expenses of registering the property in your name, this means, that once registered, the ownership of the property will be public in the name of the new owner. It is an essential expense when acquiring a property, since it is very important to register it in your name. Once registered, you will no longer have to worry about the ownership of the property. The registration costs are also regulated by law, usually between 0.2 and 0.5% of the purchase price.
- LEGAL ADVICE
It is important to be advised by an expert when buying a property. Many times, things do not go as one wishes, and it is here where it is important to be in good hands, since real estate operations are complex operations.
The costs of management or representation when buying a property are varied depending on the service that is contracted. There are services that suppose that the client must carry out some management or operation, which supposes an extra complication in the purchase of the property. And there are also services, such as ours, that offer a complete service, from start to finish, of the entire property purchase operation. This means that the client who contracts our services will not have to worry about anything at any time.
The consultancy and management costs vary depending on what is needed and the specific case, since there are many factors to take into account. This expense usually starts at €1,500 and varies depending on the price of the property. When a property exceeds a certain amount, percentages of between 0.5% and 1% are usually established.
As we have been able to observe, these are expenses that usually represent between 12 and 15% of the value of the property. Therefore, it is necessary to take into account that when buying a house, on the sale price, we have to add this percentage in relation to the expenses of the purchase of a resale house.
About Post Author
