LEGAL INFORMATION

The best advise is that it is safest to ensure your lawyer checks all contracts before you sign and that all payments are made through your lawyer.

If you are thinking of buying or selling a property in Spain, it is important to know from the beginning how much it will cost you.  The following gives an outline of the main costs (but not all) to help you budget.

Some of the costs can be paid by either the buyer or the seller (e.g. Plus valia).  You may be able to negotiate some of the costs (e.g. estate agent commission).  The actual cost will depend on your personal circumstances and laws can change especially tax law.  Your lawyer will give you a proper breakdown.

Buying Property

The total average cost of buying a property (both resale and off-plan) is around 10-12% of the property price.

Property Purchase Costs

Other costs can include:

• Notary and Property Registry fees (normally paid by the purchaser).
• Money exchange and banking costs if transferring money to Spain.  There are a number of reputable currency exchange services that can offer a better exchange rate than the high street banks.
• Estate agents generally don't charge commission to purchasers but some may charge an 'Introduction Fee'.
• It is not common to have a full property survey done in Spain (your mortgage lender will do a valuation).  If you want one, you will need to pay for this.

The schedule for payments can vary.  Often you will pay a deposit to the estate agent to take the property off the market for a set period, then you will pay 10% (minus the deposit) and the 90% on completion at the Notary.  Other costs are payable as and when due.

Once you have purchased the property, your expenses will include:

• Any community fees
• Utilities

• IBI tax (Impuesto Sobre Bienes Inmuebles).  This is alocal rate payable annually to the town hall calculated on value of your property as per the Catastral office records
• Building and contents insurance

If you are renting out your property you are supposed to declare this to the tax office and may be liable for income tax depending on the amount earned.

Selling Property

Property Sale Costs

You should also ensure that the following payments are up to the date:

• Plus Valia Tax
• Any community fees
• Utilities
• IBI tax
• Any outstanding debts on your property

The schedule for payments can vary.  A percentage of the estate agent commission and the lawyer fees are normally paid initially with the balance on completion.  Other costs are payable as and when due.

* Note: these figures are an approximate and can vary.