The Real Cost when buying a Spanish Property

The real cost when you buy a Spanish property implies taxes and other costs added to the price that you first see in the ads.

When you buy a Spanish property, there are costs and taxes over the property price that you need to take in account.

In this article you will see that the costs vary whether the building is new or resale, that there are different types of taxes with distinct percentages and, as we are focused in Sitges, you will see the real market situation in this region.

1. The costs whether the building is new or resale

On one side, when you buy a Spanish property which is new, you will have two main taxes:

The first one is the VAT (known as IVA in Spanish) which implies the 10% of the price and the second one is the Stamp Duty (known as AJD) that includes the 1.5% of the price.

On the other side, if you buy a Spanish property which is not new:

The Transfer Tax (also known as ITP) is applied to the 10% of the purchase price and, all the same, it is important to keep in mind that if you are a non-resident and you buy a second-hand property, you will only need to pay the 3%.

2. Mortgage costs give rise to Notary expenses

The mortgage and the Notary expenses include other costs when you buy a Spanish property:

Firstly, the mortgage provider demands an evaluation of the property to grant the mortgage. Then, the costs of the mortgage itself are calculated and they vary around the 1% of the value of the mortgage.

Secondly, the Notary expenses are related to the price declared deeds of sale but they usually involve around the 0.5% of it.

3. Fees: the property registry inscription

The costs of the expenses related to the inscription on the land registry are around the 1% of the price though, once again, they vary depending on the area where you want to buy the property.

4. Banking costs

If you want to buy a Spanish property, you will need to open a bank account in Spain to transfer the money from the bank of your country.

This cost nearly reach the 1% split up in: the 0.4% of the cost of transferring money and the 0.5% of the banker’s chequer cost.

5. Buying a property in Sitges

Nothing could be further from the truth that the right direction of the Spanish economy is beginning to stimulate the national and international investors to buy a property in this country.

As Sitges is considered an earthly paradise, it is reliable to consider your investment there. The economic upturn when you invest in a property and then you rent it is assured: the quantity of people who consider moving monthly into there is growing greater.

Moreover, our company Sea Sun Invest audit personally the vacation properties in order to avoid unexpected surprises and the possibility to continue in touch with the company Weekly Villas; in this way, we will manage your villa during the unoccupied periods.

So, if you want to buy a property in Sitges or in another Spanish locality, the piece of information we have supplied will guide you to know about the total cost of the investment bearing in mind the taxes, mortgage, notary expenses and other costs.

¡Begin to consider your investment!