Dorenbosch Estate offers a wide variety of properties, supported by a multilingual team of professionals who will be happy to help you.
We can imagine that buying a house in Spain comes with many questions. We have the expertise and experience to guide you within the Spanish legislation and bank system for all matters regarding the purchase of a property. From selecting and visiting properties to the signing at the notary. Below we have included an overview of the costs of buying a property on the Costa del Sol. The total of these costs is usually 10-11% of the purchase price.
Notary Fees and Title Deed taxes [“Escritura” in Spanish]
Notary fees and title deed are expenses to be paid for both new or pre-owned properties. The title deed is a legal document containing a great deal of detailed information concerning the purchase. The fees mainly depend on the purchase price of the property and also partly on the number of pages in the title deed. This cost ranges normally from €500,00 to €1.800,00.
Property Register Costs
Land registry fees are a standard fee that is also based on the selling price stated in the title deed. These are normally lower than notary fees.
Buying with Mortgage
When buyers request a mortgage for either a newly built- or second-hand property, the following costs will be charged: opening fees, notary and registration fees, stamp duties and appraisal costs. These costs are however dependent on the bank entity or finance entity that the buyer enacts with. Since 2019 these costs are declared unlawful by Spanish law. A result from this is that most of these costs are now paid by the lender. Herewith an explanation for each of these costs:
1. Bank Opening Mortgage Fee-
Usually this is between 1% – 1,5% of the mortage amount.
2. Notary and Registry Fee-
This is a fixed fee based on the standard prices that are approved by the Bar Association. The amount varies depending on the mortgage amount.
3. Stamp Duty
[“Impuestos de Actos Jurídicos Documentados]- The stamp duty, also known as AJD in Spanish, is 1,5% of the purchase price.
4. Property Valuation Costs-
An independent party is asked by the bank to value the property. The valuation costs are depending on the size of the property (m2). In general, valuation costs range between €300,00 and €800,00.
Insurance
We always highly recommend having insurance on your property, to cover all liabilities. In the case of buying with a mortgage, the bank obliges the buyer to take out an insurance policy. This policy should include protection of the interest until the mortgage is paid off.
Lawyer Fee
We advise to hire a property lawyer when buying a property in Spain. This fee is 1% (plus 21% VAT) over the purchase price, and are normally paid after the purchasing process.
Buying a Property- Golden Visa
The Golden Visa for Spain is a residence visa program designed for property owners that intend to make a significant investment in the Spanish economy. An investor investing €500,000.00 or more in Spanish property will normally qualify for a Golden Visa. This visa does not function as a work permit.
As a quick summary, the buyer’s total cost of reselling property is between 10 – 11% of the purchase price.
For other questions, or if more information is needed, we will be happy to help. Please do not hesitate to contact us.
