Spanish Property - Purchase fees, expenses and taxes
For a typical purchase, buyers should budget for an additional 8 – 10% over and above the agreed purchase price of the property to cover all fees, expenses and taxes.
The typical expenses are as follows:
Solicitor’s fees
Whilst most lawyers seek to charge fees of between 1% and 1.5% of the property value for representing you in a purchase, Tenerife Solicitors charge a fixed fee of only 0.9% on all purchase transactions (subject to a minimum fee of €1,000). This is an all inclusive price with no hidden extras. OUR FEE ALSO INCLUDES ALL POST-COMPLETION WORK, SUCH AS RE-REGISTERING UTILITIES, COUNCIL TAX ETC. All searches and travel expenses are also included.
Should you require us to prepare a Tenerife Power of Attorney to act on your behalf in the transaction, this will cost an additional €150.
Tenerife Solicitors also recommend that all clients prepare a Spanish Will to cover their assets situated in Spain or the Canary Islands. We can prepare an individual’s Will for a fixed fee of €190 (includes Notary’s fees). For more information on Wills, see WILLS PAGE LINK
6.5% Stamp Duty (Impuesto sobre Tramisiones Patrimoniales y Actos Juridicos Documentados) for all resale property (5.75% when buying a newly-built property) payable shortly after completion.
Notary Fees. – Calculated on fixed fee scale, depending on the particular Notary. Whilst the fees vary from Notary to Notary, typical fees range from approximately €350 for a property valued at €150,000 Euros to €600 for a property valued at €500,000. Payable on completion.
Land Registration Fees − Typically around 40% of the Notary’s fees. Payable after completion.
Plus Valia (Added value) is a tax levied by the local Town Hall based on the particular area where the property is located, on the surface area of the land, on the catastral value and on the date of the previous title deed. This tax is similar in principle to UK Capital Gains Tax. Plus Valia tax may range from a few hundred euros to as much as several thousand euros on larger properties with a lot of land. By law the vendor is obliged to pay this tax, although the position is sometimes negotiated. In principle, the seller should pay the tax, as it is the seller who has benefited from any increase in value of the property on which the said tax is calculated. In the current market, we would almost universally recommend that the seller pays this tax.
Most importantly, we would recommend that a retention is taken on completion to allow the buyer to pay this tax on the seller’s behalf. If the seller was left to pay it and subsequently forgets or refuses to pay, the authorities will not chase the seller, but will instead come after the property on which the tax is calculated.
Mortgages
Non-residents can get up to 60% of the valuation. We can help you with this process.
Typical Bank charges include:
Obtaining a Valuation - costs approximately € 240
1% mortgage opening commission (calculated on the sum borrowed)
Buildings Insurance - varies from € 120 to € 240 per year.
Notary fees & fee for Registration of the mortgage – (same as detailed above, but dealt with directly by the bank so as to protect their security).
