San Miguel de Salinas Property for Sale
What are the expenses when buying housing in Spain?
When buying a home, you should not only take into account the sale price, but also the purchase expenses of the house and taxes.
In Spain, the law states that if there is no specific agreement between the parties, "the costs of granting deeds shall be the account of the seller, and those of the first copy and the others subsequent to the sale shall be the buyer's account." Thus it is frequent that the expenses paid in full of the buyer and the municipal surplus value is paid by the seller.
Apart from the price of the sale, you will find the following expenses when buying property in Spain.
Expenses of the sale.
- Notary: to have access to the Property Registry, the sale must be formalized in a public deed before a Notary. Therefore, by writing and signing the deed, the Notary collects a fee called notarial fees that are legally established and that depend on the amount of the document signed.
- Property Registry: after the signing of the deed, it is taken to the Property Registry for registration. The Registrar collects a fee for it that is legally established and will depend on the price of the sale.
- Management expenses: sometimes an agency is hired to carry out the procedures for payment of taxes and registration of the deed of sale in the Property Registry.
- Mortgage expenses: in the case of needing financing, there will be certain expenses derived from the granting of the mortgage.
Taxes associated with the sale.
- VAT or ITP: a tax is paid or another depending on whether it is a first delivery of the house by the developer in which case VAT is paid or is a second delivery, in which case the sale will be taxed with the ITP.
- AJD: paid on all purchases made with a mortgage. The type of tax depends on each Autonomous Community
- Goodwill. Also called Tax on the Increase of Value of Urban Land: it is calculated taking into account the cadastral value and the number of years that the property has had the seller. Unless otherwise agreed, the seller should pay.
