0

 

In Spain there are multiple additional fees and charges when buying a property, let’s make sure you are aware of them.

Let’s start with the primary decisions that are made when buying a property and how it will effect you.

 

1º – Buying a newly built property or one that has not been registered to anyone:

 

  • With a newly built property or with a property that has not been previously registered, you have to take into account that you will have to pay the property tax,VAT/IVA, which is currently at 10%.
  • On top of the of the tax you will also have to pay all of the service charges, example : Notary fees and property registry fees. All of these additional fees add up to an approximate 3% extra overall.
  • All of this does however change if you decide to take a mortgage out on the property the extra o overall charges will be an extra 1%,  you will also have to pay the bank to valuate the property which normally costs between 300-400€ on average.

 

 

2º – Buying a previously owned property, one that has been previously registered in Spain:

 

  • With a previously owned/registered property in Spain you will not have to pay the house tax on the property, but you will however have to pay for the Transmisiones patrimoniales which does add up to an estimated total of 10% of the property value.
  • On top of the of the Transmisiones patrimoniales you will also have to pay all of the service charges, example :Notary fees and property registry fees. All of these additional fees add up to an approximate 3% extra overall.
  • All of this does however change if you decide to take a mortgage out on the property the extra o overall charges will be an extra 1%,  you will also have to pay the bank to valuate the property which normally costs between 300-400€ on average.

Another thing I have to go over is that I need to make sure you are aware of the three ways a property is valued in Spain and how this might effect your decision.

 

 

 

 

 

1º Property evaluation (Tasación):

This is where if you require a mortgage from a bank, they will send an agent to your property to evaluate it to make sure that the price presented is around the market value that you are looking to buy it for.

2º Market value:

This is where you have potentially found a property that you are interested in buying and you have discovered it either online or in an estate agency, etc.. where it discloses the market value the seller has it available for and it was bought for either the market price or the offer that was placed.

3º Valor catastral:

This is an evaluation the Townhall makes based on a mathematical formula:

This Pricing is the only pricing that is attached with the Tax office (HACIENDA).

Now this is where the problem could occur.

When you sign the deeds of a property with the price agreed (market value) and the valor catastral is superior, you could posible receive a fine ( complimentary of the price put together by the Townhall )

(Example): I bought a property on todays market for 70,000€ but the HACIENDA (Tax office) thinks that the property on todays market is still worth 100,000€ so for this reason there is common fault where you potentially can get caught up in a bit of a mess where they feel as if you owe the taxes for a property worth 100,000€ even though you brought it for 70,000€.

  • Now this is where you would have to decide:

 

The choice is yours!

If you have any further questions or if you are looking to buy a property in Spain feel free to get in touch and I will be more than happy to help.

 

Kind Regards,

Bradley Stevens

 

————

 

Te invitamos a seguirnos en nuestras Redes Sociales:
Follow by Email
Facebook
Facebook
Twitter
Visit Us
YouTube
YouTube
LinkedIn
Instagram
0

¿Le gustó este artículo? No dude en dejar un comentario ;)