Associated Costs for Buying a Property in Spain

The costs associated with buying a resale property in Spain will be approximately 10 to 11% of the agreed purchase price. This will include Property Transfer Tax (Impuesto sobre Transmisiones Patrimonales, ITP), Estate Agency Fees, Lawyer Fees, Notary Fees, Land Registry Fees. There will also be local bank charges to organise payment to the buyer and perhaps fees to organise and / or update utility contracts into your name as the new owner. If your purchase is subject to a mortgage or lending facility then the associated purchase costs will be slightly higher in order to cover bank valuation and mortgage fees and Notary fees.

Organising Payment for a Property Purchase in Spain

Make sure you understand what is required of you and by when and that this is covered in the Private Contract (Contrato Privado de Compraventa):

• How will you make payment for the deposit and balance?
• What do you need to do to make sure the money is ready well in advance to sign the deed of sale (escritura)?
• Do you know the timescales involved for the various bank transactions you need to make?
• What are the bank charges from the bank of origin? Please note that in most circumstances you should opt to pay all associated bank charges at source when sending monies to Spain since bank charges to receive money in Spain can be quite high.
• Do you need a mortgage and / or lending facility?
• What is the rate and what are the charges?
• Do you need to make any currency transactions that need to be organised in advance?
• Do you need a foreign exchange bank account?
• Do you have a bank account in Spain and are you aware of the bank charges applicable for the transactions required to pay the seller on signing the deed of sale (escritura)?

Please note that this information is meant as a guide only, local laws and figures can change from time to time. In all circumstances we recommend that you take professional local advice regarding your personal situation.