All expenses that appear when buying property in Spain (taxes, notary costs, etc.) make up in average 11-12% from the property value. In case of applying for a mortgage this percentage grows.
Real estate or investment property purchase expenses
1.    All purchase and sale deals in Spain have to be notarized. Notary costs depending o n the complexity of the deal and on the rate of each individual notary  may vary from 500 to 2000 Euros
2.    After signing the purchase sale deal it is necessary to inform the Property Register (Registro de Propiedad) about changes of the ownership. Usually this procedure is done by the administrative agency (gestoria) associated either with the notary office or with the developer in case of a new construction or with the bank if the buyer applies for a mortgage. Administrative services that take care of the changes in Property Register cost from 250 to 1000 Euros. Registration fees vary depending on the complexity of the deal and notary rates from 1000 till 3000 Euros.
3.    Transfer of ownership tax. Purchase of a new property is liable to a VAT (Sp. Impuesto sobre Valor añadido-IVA).Purchase of a property from resale market is also subjected to a tax – Property Transfer Tax (Sp. Impuesto sobre Transmisiones Patrimoniales – ITP). In Catalunya both taxes have the same value of 10% from the property price. In case of purchasing a plot of land amount of the tax is 21%
4.    Acquisition of investment property is subjected to a VAT tax of 21%, however there is a possibility of avoiding this expense by arranging VAT compensation during the deal signing. For more detailed information please contact Albert Good Team.
5.    Stamp tax. When purchasing a new construction  buyer is obligated to pay a stamp tax (Sp. Actos Juridicos Documentados – AJD) which is 1.5% of a property value.


6.    Other optional expenses may be the following:
•    Lawyer services,  whose charge depends on the deal complexity and rates of each lawyer
•    Official interpreter services during notarization. Usually this service cost around 500 Euros

Buying a property using a mortgage also means some additional costs.

1. Mortgage credit contracts in Spain also have to be notarized. Notary costs for this procedure are comparable to the cost of notarization of a purchase sale deal.
2. All the information about mortgage has to be presented to the Property Register, this process is similar to the changing of the ownership process.
3. Stamp tax. Mortgage procedure is subjected to a stamp tax (Sp. Actos Juridicos Documentados – AJD) which is 1.5% of a total expected amount of mortgage loan. This amount does not equal the loan amount, but consists of all mortgage payments during the whole expected period of the mortgage according to the mortgage contract plus interests

4. It is necessary to make the evaluation before the bank approves the final mortgage amount. Usually banks have several evaluation companies they are working with, all of them members of Sociedad de Tasación inmobiliaria. The price for this procedure can vary form 250 to 2000 euros depending on  the property price.

5. Banks can charge till 1.5% of the loan amount as mortgage contracting fee. Some banks offer their clients to omit this fee, but instead the client is obliged to contract some additional bank services e.g. health insurance, usage of credit cards, etc. One of such services can be contracting life insurance of the loan borrower for the amount of the mortgage.

6. Another indispensable condition for the bank mortgage is contracting insurance for the property in question. This amount, however, can be considered insignificant in comparison to the life insurance payments.

Albert Good Real Estate Agency offers you consultation on the purchase and sale deal and the mortgage expenses optimization