Property to Buy in Spain
The costs of buying property in Spain are high compared to the UK, but they are what they are and in another section I will give you some ideas on how to save money when buying your property.
The actual costs of buying property in Spain fluctuates a little but you need to allow for between 10-12% of the value of the property.
And you thought the UK was expensive with its Stamp duty at 3 & 4%!!!
The biggest single expenses is in fact , surprise, surprise, is the transfer tax, which in Andalucia is 7% plus a further 1% for the costs of the transfer documents.
So on an average purchase of €175,000 that's another €14,000 on top of the costs of buying property in Spain on taxes alone
Their fee is normally 1% of the value of the property, but you should agree terms with the Solicitor before instructing them.
The Notary fee is between €350-€600 it is fixed and dependent on the size and value of the property that you are buying.
A similar fee to the Notary so another €350-600
This municipal tax is on the increase in the value of the property since its last sale. It is called 'plus valia' and can vary from 10% to 40% of the annual increase, depending on the length of time between sales and the town in which the property is located. This can be a large fee so you would be wise find out exactly how much it will be by going to the municipal tax office and asking in advance.
Please note that if you are buying new properties then the Plus Valia tax is very low to virtually nothing.
Other hidden costs of buying property in Spain.
The Plus Valia can be a nasty surprise so make sure that your Solicitor knows how much it is and who is paying it, you or the seller, before you hand over your money.
Your Solicitor also needs to obtain a Nota Simple for your property. which will provide any details of mortgages on the property, outstanding back taxes etc. He and you must be certain that these debts have been cleared otherwise they stay with the property!
This means that you, the new owner are liable for all debts, past and present.COURTESY OF MALAGA AIRPORT GUIDE