Buyer's costs on a house purchase in Spain
As in the Netherlands, there are costs involved in buying home in Spain. But the buyer's costs are quite a bit higher in Spain anyway. You can read more about purchase costs in Spain in this article!
The buyer's costs: of course you take this into account as a buyer, but the purchase costs in Spain are also different from what we are used to in the Netherlands or Belgium. To help you orientate on the buying process and give you a fair indication of these costs, we explain the buyer's costs.
Cost of buyer for purchase and mortgage
In this article, Pedro distinguishes between buyer's costs when buying the Spanish property and buyer's costs when getting a mortgage through a Spanish bank. After all, both involve costs!
Note: Buyer's costs in Spain are never co-financed and should therefore be paid from your own funds. This is precisely why it is important to understand and factor these costs into your plans for a home purchase.
Purchase costs when buying a property in Spain
Unlike in the Netherlands, a 100% mortgage is not possible in Spain. A Spanish resident can get a maximum mortgage of 80%. For a non-resident from aboard, banks will give a maximum mortgage of 70%. This is an absolute max for financing for the Spanish bank. So it is also common for the Spanish bank to only finance 50 or 60%, based on your purchase profile. Pedro's advice is to never assume the maximum.
1) Property transfer tax
A large part of this buyer's fee covers the transfer tax, as it is between 8 and 11% of the purchase price in Spain. A very high percentage that Dutch people often do not want! The percentage depends on the region where the property is purchased. You can ask your estate agent or lawyer for the exact percentage for your region.
In the situation of buying a newly built house, we do not talk about transfer tax, but VAT (IVA) and it amounts to 10% in that case.
2) Notary fees in Spain
A Spanish notary will handle the purchase of your property. This notary should draw up legal documents and supervise the transfer of the property. The costs a notary in Spain are between 600 and 900 euros depending on the purchase price and are always for the buyer. This does allow the buyer (in consultation with the selling party) to choose the notary.
3) Registration cadastre
You need to register the property in your name in the land register, both in the "Catastro immobiliario" (compulsory, but free) and in the "Registro de la Propiedad" (legal record of ownership). The cost of this depends on the property, but is generally between 600 and 1,000 euros.
Voluntary additional costs do not include the above-mentioned buyer's costs. For example, do you want a legal help for home purchase into your business? Or do you wish to hire a real estate agent to support your house hunt? If so, you often still need to pay these experts directly for their work.
Cost of financing (mortgage) in Spain
If you want a mortgage when you buy your home, this also involves one-off costs. This is often unfairly compared to the cost of buying the property. Below is an overview of the different costs you need to consider:
1) Bank charges in Spain (mortgage closing costs)
These are fees that a bank charges for taking out a mortgage. In the Netherlands, we often do not know these costs anymore, but in Spain they amount to up to 1.5% of the mortgage amount. Depending on your case, this amount may be lower. Often the bank does this if there are good connections or your profile is very interesting. The mortgage advisers working with Pedro help with this, for instance. Per dossier, we can see if these bank fees can be negotiated lower.
2) Spanish property valuation costs
To qualify for a mortgage, getting a valuation of the house in Spain is mandatory. In addition, it is advisable to always do the Spanish property valuation to know the current value of the property. After all, a financing applies only on the current value, not the sales value! This not only gives you a clear understanding of financing options, but also gives you a strong negotiating position for determining the purchase price!
3) Other banking products
A Spanish bank often gives you a discount on your mortgage interest rate if you take out additional products. These include, for example, buildings insurance and life insurance. Property insurance is always advisable to take out with a Spanish bank. After all, they have just as much interest in a collateral that is in good condition. Life insurance is optional and can be expensive in Spain. It is smart to always ask for more information about the obligation of your life insurance with a mortgage quote first.
Other costs: there are also other costs for a Spanish mortgage. Obviously, you also pay a mortgage broker or adviser for the services provided.
But registering the mortgage in your name at the land registry, notary fees for preparing the mortgage deed and mortgage tax charges also apply. However, these costs are no longer for the customer, but for the bank! This is stipulated by law in the 2019 Spanish Mortgage Act. So make sure you know this if the bank does want to recover the costs from you.
Rather your surplus value deploy to incur lower costs?
With your surplus value, you can pay the high buyer's fees more easily. Ó Or you can even realise the entire purchase. Our Home equity check helps you with this!
Or rather first ?
Sample calculation of buyer's costs
To easily understand how much the costs are on average, they are usually explained in percentages. But note that the buyer's costs when buying in Spain differ by purchase price and region. So take this into account! In fact, there are also fixed costs, which are not based on the purchase price. Example: there is one fixed price for registering the property in the Spanish Land Registry; this does not depend on the price of the property.
Consider the following examples when making a purchase:
- Purchase price < €150,000 in Barcelona, Catalonia
The buyer's cost is higher, due to the low purchase price and high transfer tax in Catalonia. Assume around 13-14% - Purchase price = €450,000 in Santiago de Compostella, Galicia
The buyer's cost is average, due to the purchase price and the average transfer tax in Galicia. Assume approximately 11-12% - Purchase price > €800,000 in Marbella, Andalusia
Buyer's costs are lower, due to the high purchase price and low transfer tax in Andalusia. Assume around 10-11%
So prepare well for costs buyer when you want to buy a house in Spain. Orient yourself on what the transfer tax is in the region where you want to buy, what the notary fees are and compare these costs. You may of course ask your questions always ask Pedro.
It is especially important to know this if you are going to talk to an estate agent in Spain. Indeed, the estate agent may mention lower percentages. This is not deception, but often certain costs are withheld.
Is the cost of buyer higher than you expected? We understand that very well at holapedro. Possibly you can use your surplus value? Use our surplus value check for that!
Have clear insight into buyer costs?
Would you like to know the purchase cost of your purchase and the minimum amount of equity you will need for the property you have in mind? You can use our purchase cost calculator or our full mortgage indication walk through. For a small fee, you will receive a full calculation of your financing options. This way, you will always have a clear picture of your options.
Calculate your purchase cost in Spain
Pedro's smart purchase cost calculator helps you calculate your buyer's costs! Next, do you also need financing? Then Pedro will help you with your further questions on that. You will receive the results within 20 minutes!
Or rather first ?
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