Expenses when buying a housing
If you decide to buy real estate in Spain, then at the stage of looking for housing, preparing and concluding the "Agreement", we strongly advise you to use the services of a lawyer, or the services of a real estate agency, which is more popular in Spain. The agents will check the "history" of the object and protect you from any unpleasant surprises. Usually, the agency is going to request a number of documents and, together with the seller's side, prepare the text of the contract.
Why do we recommend contacting a real estate agency?
A team of professionals works individually with each client and also prepares a number of objects for you to choose from that are the most suitable, in order to meet all of your requirements and wishes (in terms of price, location, type of housing and many other parameters/options). The agents will also prepare all the necessary documents before the start of the transaction, check the seller's property to exclude the fact any chance of a fraud.
In the future, the Realtor will receive a NIE in your place (special registration code for foreigners, similar to an identification number), prepare a Notary Agreement and register the transaction with the Registro Público. The Realtor can carry out all these operations without your participation, having a letter of attorney.
The cost of such service is usually not that great and in most cases amounts to only a few percents of the cost of the object. But this action guarantees a fair deal and a confidence in the result. We can provide you with the best specialists in this field! The company Woodmarkgroup has been working in this field for over 10 years and our many grateful and satisfied customers can confirm this. Real estate in Spain, in Torrevieja is our main region of work.
Property acquisition tax and costs
When registering a property, you pay:
real estate acquisition tax (IVA or ITP) - 8-10%;
notary costs – up to 0.5%;
register – 0.5%.
The taxes you have to pay in the future
Property in Spain is subject to annual taxes, and all owners must pay these two taxes, whether you live in the property or not:
1. Real estate tax (IBI) - ranges from 0.7 to 1% of the cadastral value of the property. It should be borne in mind that the cadastral value is usually several times less than the real value. For example, an apartment for 400,000 euros may have a cadastral value of 60,000 euros. At a rate of 0.9%, you will pay 540 euros per year.
2. Garbage tax (Tasa Basura) - usually varies from 40 to 300 euros per year (depends not only on the type of property, its area, but also the region where the property is located).
Both taxes can be paid at the bank by receiving a notification by mail. You can also give a permission to withdraw taxes automatically from your bank account.
Payment for the consumption of electricity, water, telephone line, alarm, etc. will be charged automatically from your bank account, but you must activate these services, you will receive a notification not only from the bank, but also from the company providing these services.