I want to buy a property for €160,000 price in Andalusia. How much do I actually need to complete the deal? Our property expert explains.
If you want to buy a property in Andalusia region and make a purchase at €160,000, you purchasing costs will be roughly 11%. This amount will only increase if you are buying a brand new property which is owned by a promotor/developer where you will be the first owner. If brand new, expect the buying costs at €160,000 to be approximately 13%. So you will require a total at least of €177,600. This will include all of your buying expenses such as a Lawyer, obtaining an NIE numbers, opening of a bank account, Notary fees, transfer tax, changing utilities into the new owners name etc.
What costs are involved in buying a property in Spain?
You should expect to pay:
- Lawyer costs = 1%.
- Notary fees – depend on property value, but roughly 0,5%.
- transfer tax – ranges from 8 to 10%, this is an automatic figure of 10%, if buying a brand new property where you will be the first owner, you will pay 10% – this changes from transfer tax to VAT and is a flat rate.
- changing utilities – differs from property to property.
- Also, you have Land Registry fees which will differ from 0.5 to 1%.
Don’t forget the expenses for obtaining an NIE numbers and opening of a bank account, if you need it.
Read also:
What are the pitfalls of buying property in Spain?
Some buyers try to use a Lawyer who is not local to the area where the purchase is being made. In our opinion, this is a big mistake. We have many clients over the last 10 years who have used a Lawyer in their home country, for example, or even their accountant, to perform legal searches and complete the purchase for the buyer, and in all cases the Legal fees tend to work out more expensive when compared to using a local based (qualified) Lawyer. Plus you will unlikely receive the level of service you expect as a buyer.
For example, electricity and water connections were not switched to the new owner, or the buyer was expected to open their own bank account in Spain. Depending on the agent who you are using for the purchase, you will likely be able to receive a selection of Lawyer recommendations from very happy previous clients. So we would always suggest asking your agent for some impartial Lawyer recommendations.