Buying a new home in Spain
When buying a new home in Spain, there are additional extra costs over the basic purchase price. The total amount of these expenses will be around 10% of the basic purchase price.
Example: £ 75.471 (€ 120.202,42)
Spanish transfer tax (V.A.T) 7% - £ 5,283 (€ 8.414,17)
1% stamp duty - £ 754 (€ 1.200,01)
Notary fee - £ 320 (€ 51 0,86)
Water and electricity contract and connection - £ 377 (€ 601,01)
Spanish Solicitor around - £ 377 (€ 601,01)
Buying Step by Step
When buying a house you pay //3000€// 2.100£ as a fee in order to reserve the specific property you have chosen.
Within 40 days you normally pay 50% of the purchase-sum, 7% VAT not included, receiving shortly afterwards the contract of sale to be signed by you.
Mortgage, Final payment & Title deed
The final payment is to be paid when delivering the house with all the keys belonging to it. Since the Spanish bank laws don't allow mortgages to buying properties until they are completed, you can only finance the final payment from Spain. Normally you get a mortgage of 70% of the purchase-sum, VAT not included, but if you have a security or other properties in possession, it is possible to get a mortgage up to 70% of the purchase-sum (subject to the annual income). Finally, when signing the title deed you also pay the costs corresponding to 7% VAT and 2-3% for the administration of the purchase, charged by the authorities in question.
Costs vary according to the size of the property. The following are estimated charges:
. Water £95
. Electricity £115
. Local rates £75
. Community fees £150
Mortgages in Spain
Mortgages are available in all major Spanish banks.
Spanish banks may offer a mortgage of up to 70% of the purchase price of the property. However, the normal thing would be ask for 60%.
The interest rates in Spain at present may be 3, 25% (variable rate).The bank would fix this for the first year.
You can choose the repayment periods.
The age limit for a mortgage is 75 years. Therefore, the borrower must finish paying the mortgage by that age.
The documents needed would be annual income on a tax statement and monthly proof of income (payslips).
If you are looking to buy a property in the Costa Blanca and would like more information then contact us at email@example.com