What are the buying costs for property in Spain?

Spain › Buying, Moving, Owning & Living Overseas › What are the buying costs for property in Spain?

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  • 01/03/2022 at 5:59 PM #120322
    hottbabixz

      Hi all,
      Finally saved up enough pennies to buy a property in the Marbella area. Can anyone give me a breakdown of buying costs?

      I was advised to set aside about 15% of the purchase price. It seems a lot so want to know what it covers.

      Thank you advance

      Shania

      29/03/2022 at 11:19 PM #120688
      SoFinest

        This rough guide will give you an idea of the costs of buying property in Spain.

        New Properties allow for 14.2% of the property cost. If you seek a mortgage your costs increase to about 17%.

        Costs include stamp duty, legal fees, notary and registry fees, documentation eg power of attorney, NIE application and certificates.

        Resale properties allow for 11% of the property cost. If you seek a mortgage your costs increase to around 14%.

        Costs include transfer tax, legal fees, notary fees, documentation eg NIE applicaiton and certificates, power of attorney.

        Best advice, I can give you. Make sure you get the right help.

         

        07/06/2022 at 5:31 PM #120936
        hottbabixz

          Wow! I didn’t realise it was going to be so much.

          Is there anyway I can reduce the costs, without reducing the risks?

          09/09/2024 at 10:06 PM #127523
          Muhammad Zeeshan
          Participant

            Hi Shania,

            Congrats on saving up for your dream property in Marbella! Indeed, the 15% estimate is quite common when buying property in Spain, and here’s a general breakdown of what that covers:

            1. Property Transfer Tax (ITP) – This varies depending on the region but is typically between 8-10% of the purchase price.
            2. Notary Fees – Expect to pay between €800 to €1,500. The cost depends on the price of the property and the complexity of the purchase.
            3. Land Registry Fees – Usually around 1% of the property value.
            4. Legal Fees – It’s advisable to hire a lawyer to ensure everything is in order. Legal fees are typically 1% to 1.5% of the purchase price.
            5. Valuation Fees – If you’re taking out a mortgage, the bank will require a valuation, costing around €300 to €600.
            6. Mortgage Fees – If applicable, banks may charge a setup fee (around 1% of the mortgage value) along with possible notary and registration costs.
            7. Stamp Duty (AJD) – Around 1-1.5% of the property value for new properties.

            So yes, the 15% estimate is quite accurate. These costs ensure a smooth process, especially in a sought-after market like Marbella luxury real estate. Make sure to consult a local expert to get precise figures and avoid surprises!

            Hope this helps and good luck with your property purchase!

            Zeeshan

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