Spain has always been a popular destination for holidaymakers and retirees, but in recent years it has become increasingly popular with buyers looking for a permanent home. There are many reasons for this, including the country’s great weather, diverse culture, and friendly people. But one of the main attractions is the cost of buying property in Spain.
Prices here are much lower than in other parts of Europe, making it an affordable option for many people. But what exactly is the cost of buying property in Spain? Read on to find out.
How Much Does It Cost To Buy A House In Spain?
The cost of buying a property in Spain varies depending on the location, size, and age of the property. Notary fees, land registry fees, and VAT are also factors in the overall cost.
The Cost Involved In Resale Home Buying In Spain
The cost of buying a resale property in Spain can vary depending on the location, size, and condition of the property. Notary fees, land registry, and legal fees will also need to be taken into account and can range from 1-2% of the total purchase price.
It is important to have a realistic budget in mind when looking to buy a property in Spain. It is important to remember that Spanish property prices have slowly been recovering since the economic crisis and are now starting to rise again.
Once you have found your perfect property, there are a few other costs that need to be taken into consideration. These include furnishings, white goods, utility bills, and council tax.
If you are looking to buy a property in Spain as an investment, there are a few additional costs that need to be considered. It is important to do your research before investing in Spanish property to make sure you are getting a good return on your investment.
Costs Involved With Buying A New Property In Spain
The cost of buying property in Spain can vary depending on the type of property you are looking for. If you are looking for a luxury villa, the price will be higher than if you are looking for a more modest apartment. The average price per square meter for a new build property in Spain is around €2,000.
If you are planning to buy a new building property in Spain, there are some other costs that you need to take into account. These include:
- The Spanish Property Tax: This is a local tax that is paid by the owner of the property and is based on the value of the property. The tax is payable annually and the amount will vary depending on the municipality where the property is located.
- Community Fees: If you purchase an apartment, you will be required to pay monthly community fees. These fees go towards maintaining communal areas such as swimming pools, gardens, and lifts. The number of fees will vary depending on the size of the apartment and the amenities that are available.
- Furniture and White Goods: If you are buying a new building property, it is likely that it will not come with any furniture or white goods. You will need to factor in the cost of furnishing your new home.
- Utility Bills: You will need to set up utilities such as water
Income Tax Provision When Buying From Non-Residents
If you are thinking of buying property in Spain, it is important to be aware of the income tax provision when buying from non-residents. This tax is levied on the purchase price of the property and is payable by the buyer. The rate of tax is 3% for properties worth up to €600,000, and 4% for properties over this amount. The tax is paid to the Spanish Tax Office, and a receipt must be obtained in order to complete the purchase.
Ongoing Fees After A Property Purchase In Spain
After you have completed the purchase of your property in Spain and become the registered owner, there are a number of annual ongoing costs that you will need to factor into your budget.
If you’re thinking of buying property in Spain, you’ll need to budget for a few key costs. The purchase price is just the start – you’ll also need to pay stamp duty, legal fees, and other associated costs.
Stamp duty in Spain is calculated based on the purchase price of the property. For properties worth up to €400,000, the stamp duty rate is 1.2%. For properties worth more than €400,000, the stamp duty rate increases to 2%.
Legal fees in Spain can vary depending on the lawyer you use and the complexity of the transaction. However, as a general guide, you can expect to pay around 1% of the purchase price in legal fees.
Other associated costs when buying property in Spain include things like registration fees and taxes. These can add up to a few thousand euros, so it’s important to factor them into your budget when planning your purchase.
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