Costs when buying a property in Spain

Have you finally made the right decision and are moving to sunny Spain? Congratulations! This is what you need to know if you also decide to buy a property.

Let me start with good news:

The Real Estate agent fees: the seller is paying this one in general.

So, what are the costs:

The costs for buying a property might be slightly different if it is a new-build property or a resale.

Costs for buying a New-build property:

1.       VAT

2.       Legal fee

3.       Notary and Registry fee

1.       VAT = 10%

2.       Legal fees: If you decide that you want to have a solicitor, this might vary between charging a percentage of the sale, usually between 1-2%, or a fixed fee between 1500-2000€

3.        Notary and Registry fee:

·         Notary: This fee is incurred for the formalisation of the sale, including the drafting and signing of the public deed of sale (escritura pública de compraventa).  The notary fee is based on a sliding scale relative to the property's sale price which typically ranges from 0.1 to 0.5%.

·         Registry: The registry fee, which is also based on the property's sale price, will range from 0.1% to 0.2%.

Costs for buying a resale property:

1.       Transfer Tax

2.       Legal fee

3.       Notary and Registry fee

1.       Transfer Tax: This goes between 6 to 10% at the general tax rate (but you have reduced rates in certain cases). This amount depends on which Spanish region this property is located.

2.       Legal fees: If you decide that you want to have a solicitor, this might vary between charging a percentage of the sale, usually between 1-2%, or a fixed fee between 1500-2000€

3.       Notary and Registry fee:

·         Notary: This fee is incurred for the formalisation of the sale, including the drafting and signing of the public deed of sale (escritura pública de compraventa).  The notary fee is based on a sliding scale relative to the property's sale price which typically ranges from 0.1 to 0.5%.

·         Registry: The registry fee, which is also based on the property's sale price, will range from 0.1% to 0.2%.

Other costs to take into account

Banking costs: Usually a percentage of the amount wired + cost of holding an account

This could be very important if you don’t have a Euro account and need to convert your currency like Pound, Dollar, Yuan, Shekel, Ruble,… up to 3%

Our Tip: You have *companies specialized in wiring funds internationally working with segregated accounts at the major international banks. With this:

1. You can lock a currency level

=> you will know the commission BEFORE wiring the money

=> you will know the level at which you will convert your currency in Euros BEFORE wiring the money

=> you will know the exact amount you need to wire in your local currency BEFORE wiring the funds

2. You wire the money in your currency

3. The company will wire the money in Euros in Spain on your Spanish account.

*Please contact me if you would like a referral about some of these companies