Guidance for buying property in Spain
At Nordica you will find a wide choice of properties backed up by a multilingual team of professionals who are happy to assist you.
If you’re considering buying a property in Spain, you’ll need to bear in mind that the legal system and steps to follow may be very different from those you have experienced in your country. With over 30 years of business, we have a strong knowledge of Spanish legislation as well as the bank system. We will be delighted to answer your questions and to help you with anything related to a purchase of your home. Starting from selecting and visiting properties to completion signing at the Notary.
As a quick guideline we like to inform buyers of a resale property that the total cost is between 10 – 11% of the purchase price.
Below you will find information more in depth.
Notary Fees/Title Deed (Escritura in Spanish).
Notary fees are based mainly on the selling price and also on the number of pages of the document title deed of the property, which will vary from 500.-€ up to 1.800.-€.
Property Register Costs
Property Register Costs are usually a standard fee which is also based on the selling price stated in the title deed, and it is lower than Notary fees.
The purchase of a second hand property in Spain requires from the buyer the payment of a Transfer Tax or ITP (“Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados”in Spanish)
For Second hands properties transfer tax rates are:
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For New Development properties
For newly built properties directly from the promoter or property developer there is no transfer tax but a VAT of 10% or IVA in Spanish on top of the value of the property and Stamp duties (Impuesto de Actos Jurídicos Documentados) at 1.5%-
Buying with Mortgage
If the buyer will need a mortgage to buy a second hand property or newly built property the cost involved will be also: **Opening fees, Notary and Registry fees, stamp duties and valuation**. Nevertheless, the above- mentioned costs will depend on the Bank Entity or finance entity, due to the latest changes in Spanish Law approved in 2019, where these costs are being declared abusive. Therefore, the biggest portion of these costs are payable by the Bank. **See below**:
1.- Bank opening mortgage fee: Normally between 1% – 1,50% of the mortgage amount
2.- Notary and registry fees, based on standard prices approved the by their Bar Association, that vary depending on the guaranteed capital of the mortgage.
3.- Stamp duties (Impuestos de Actos Jurídicos Documentados) 1,5% of the total responsibility of the mortgage approved
4.- Property Valuation Cost: the bank will apply for services from an independent Survey Company, to make a valuation of the property. In this case, the buyer will pay from 300.-€ up 800.-€, depending on the size of the property (m2).
We always recommend having an insurance to cover the liabilities related to your property. If you will be buying with a mortgage; one of the conditions of the bank is to contract an insurance policy on compulsory basis, which also protects the interest rate until the mortgage is repaid.
We recommend you to have a Lawyer during your transaction of purchasing a property in Spain, being Lawyer Fees 1% plus 21% VAT over the purchase price.
Buying a property – get a GOLDEN VISA.
Spain currently offers a ‘golden visa’ program for new property owners.
This is a form of investor’s visa. If you invest more than €500,000 in Spanish property, buying one or more properties, you will normally then be eligible for a golden visa.
This is not a work permit, but it will allow you to live in the country. Please contact us for more detailed information.