When you buy a property in Spain, there are additional costs over and above the actual price of the property price.
Legal and Administration Costs
For both new and resale properties, there will be a property purchase tax of 7% to pay and a sales tax of 1%.
In addition, costs will be incurred for the registration of the property and for legal and administrative tasks that need to be performed. There will usually be a charge for the connection of utility services such as electricity and water.
As a guideline, we always recommend that you allow 10% of the property purchase price to cover costs. If you choose to finance your purchase with a Spanish mortgage, it is prudent to allow a further 3% of the purchase price on top to cover the associated costs.
How Much Deposit Do I Need?
Having found your dream home, a reservation form will be completed with all of the details about you and your purchase. At this point a reservation deposit of €3.000 is paid.
Staged Payments
After a period of approximately 4-6 weeks, a private purchase contract is issued to be signed by you and the builder or seller if a resale. For new properties a second payment is required. Typically this will be between 15% and 30% of the purchase price depending on the builder. For a resale property, the payment is usually 10% although if the purchase process is expected to be reasonably quick, the sale may proceed straight to completion.
The remaining balance for your property is only required on the day of completion and signing, nothing more to pay till then.
Spanish Mortgages
Let us help finance your purchase in Spain with a mortgage of up to 90% or release equity from your UK property to use as your deposit.
Want To Know More?
To learn more go to the Financing and Mortgages Services section or contact us for more information
