Costs involved in buying a house in Spain
Before buying a home in Spain, it is very important to know all the expenses related to this transaction. The cost involved in buying a house in Spain is an aspect that should not be forgotten because they are enough and can increase the price of any property.
What costs are related to the purchase of a home in Spain?
Although we think that the mortgage is the main expense involved in the purchase of a home, we must add many others, which must be faced in order to become a property owner.
Experts recommend having savings ranging from 10% to 15% of the price of housing, although it depends on the Autonomous Community where you want to buy the property. All expenses are mandatory, although the final price will depend mainly on whether it is a new or used house.
At the time of acquiring a home, it is necessary to take into account the notary, whose fees are regulated by the State and all charge the same price. Another expense is the registration of the deeds signed by the notary in the Property Registry, a mandatory process.
The taxes related to the purchase of the house are also related to whether the house is new or second hand and the price of it. The most important tax is VAT, which in 2018 is at 10%. To this, we must add the tax on Documented Legal Acts. The applicable tax is determined by each autonomous community, which is usually between 0.5% and 1.5% of the amount of the sale.
For used homes, the most important tax is the Tax on Property Transfers. The amount depends on the percentage applied to the deed price and the Autonomous Community where the home is located. The type is between 6% and 10%. In spite of this, having the advice of professionals is necessary to take into account all the possible expenses and not to take any unexpected surprise.