Do you know which are the expenses that you will have to face in a sale?
When we are looking for a house in the desired place, we are carried away by the desire of the moment, but it is necessary to consider a number of expenses that, in many cases, are not taken into account and that can cause that the sale does not come to a good end.
PROPERTY LAW
It is necessary to take into account at the moment of proceeding with a purchase of a property, even before considering it, the expenses that this purchase will entail. In fact, we always think about the mortgage and the already so famous mortgage expenses (you can obtain more information in the following link). But the fact of the sale and purchase here in Spain entails the bellowed expenses to take into account:
- Expenses of Notary: The rates, notaries’ fees, are regulated by the State and therefore all notaries charge the same. What will make their fees higher or lower will depend on the price of the property. For example, for a property of about 150,000 euros, you will pay approximately 950 euros.
- Property Registry: After the sale is signed in front of a notary, it must be registered in the property registry. In this case the fees are also fixed by regulation and the price will vary according to the value of the property.
- Taxes: Depending on whether the property is newly built or second hand. This expense will be the highest of all. For new homes the VAT amounts to 10% of the price (in 2021). The VAT may also depend on whether it is public housing, as it will vary according to the Comunidad Autonoma or the type of social housing it is.
In addition to VAT, the Stamp Duty (Impuesto de Actos Jurídicos Documentados, IAJD) must also be included. This tax is levied on the acts formalized in deeds and will be paid by the buyer. The amount depends on each Comunidad Autonoma. In Andalucia, for example, it has just been reduced to 1.2%.
For second-hand properties, instead of VAT, the buyer will pay the Property Transfer Tax (ITP). In this case, as with VAT, the amount will depend on the property’s price and a percentage will be applied. Each Comunidad Autonoma applies a different interest rate. In Andalucia the interest rate has been reduced to 7%.
- Lawyer: This is the only optional expense, but it is highly recommended for those who do not know the relevant procedures, especially if you are a foreigner. There are many properties that do not have the mandatory legal requirements due to the continuous changes over the years in terms of urban planning, so a lawyer will be able to solve the problems that may rise throughout the sale.
If you need more information about what is necessary to be able to make a purchase, we can advise you to manage it so you can enjoy your property in Spain without worries, do not hesitate to contact us and if you like the post, please share!
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