Andalucia SAles logo   Maps of Spain by Data Spain  2006
My status

The Buying Process - 3

 

The NIE Application FormExpenses

As in any property purchase there will be expenses. The final expenses may vary but, as a rule of thumb, be prepared to pay somewhere in the region of 10% of the purchase price; the final figure will be dependent on the fees charged by your lawyer and by notaries, as well as the 'plus valia', a form of capital gains tax calculated on the increase in the property's value since it last changed ownership.

Fees during the buying process:

  • In Spain VAT (IVA) is charged on all new build properties at a rate of 7% and on land and building plots the rate is 16%.
  • For resale properties VAT is not applied but there is a Property Transfer Tax of 7%. Stamp duty (AJD) is 1%
  • Notary fees are variable on a sliding scale between €60 on house value of €150,000 and €150 on a house valued at €600,000
  • The Land Registration Fee is variable and similar to notary costs
  • Spanish Lawyer fees are normally 1%

It is a requirement to open a Spanish Bank Account. It may be a good idea to do this in advance, to expedite the buying process. If you find a suitable property you may wish to put the deposit down quickly to secure your purchase.

Mortgages & Funding

Some UK Banks and Building Societies are now prepared to provide mortgages for properties in Spain. When you buy a property in Spain, you will know the price of the property in Euros but you will not know the actual cost in Sterling until you buy all of the currency to pay for it. This means that the property could either cost you more or less than you had planned, due to fluctuations in the currency market.

If you wish to lock into a specific exchange rate then there are firms that can organise this. Please contact us for details of firms which may be able to help.

 

About Us | Site Map | Privacy Policy | Contact Us | ©2006 Andalucia Rentals Ltd