Buy & Sell Expenses
Estimated expenditure for the purchase of a propertyWhen buying a home, with or without mortgage, it is necessary to have a “plus” saved up money to afford to pay additional expenses, such as those generated by notary, property registry and home appraisal. Experts advise that savings must to be close to 10% of value of the house to deal with “success” with these added costs.
Home appraisal: when applying for a mortgage to buy the house is necessary to pay a valuer to perform the valuation of the property and so the bank will know the percentage of funding granted depending on the value. The cost of the appraisal depend on the type of property, so that pricing can cost between 250 and 350 euros.
Notary fees: Notary fees are regulated by the administration and depend on the price of the property. In the notary must pay for two scriptures, purchase and mortgage.
For example: in a property of 250,000 euros costs the deed of sale amount it’s around 400 euros.
If the mortgage is 175,000 euros, signing mortgage would be about 300 euros.
Property registration: register the two items related to the sale of a property, the registration also has a cost.
It could mean about 350 euros if taken as an example a house purchased for 250,000 euros.
- Management: Financial institution are responsible for processing the assessment of taxes and perform other paperwork. Expenditure is around 360 euros.Taxes: There are two different taxes depending on whether the home is new or second hand.
New home: the tax on this property is the 10% VAT. Therefore, in a house of 250,000 euros, the tax will mean 25,000 euros.
Used Housing: the tax charged on this type of property is the Transfer Tax (ITP) and varies depending on the Autonomous Community, but between 5% and 10% of the deed price
(between 12,500 and 25,000 euros for example previous).
Remember that estate can claim a higher payment to the buyer if it considers that the home is worth more than you paid for it. The estate of each CCAA has tables of minimum prices and calculated the minimum ITP them you have to pay a person when you buy a house.
Both new housing as used are subject to the payment of other tax which is the Stamp Duty (AJD) representing 1% of the deed price of the sale and another 1% of the mortgage amount deeded