Buyer's costs on a property purchase in Spain

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 our native countries. To help you orientate on the buying process and give you a fair indication of these costs, we explain the buyer's costs.

Buyer's costs for a 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 your country possibly, 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%. Dit is voor de Spaanse bank een topfinanciering! Het komt dus ook vaak voor dat de bank slechts 50 of 60% wil financieren, op basis van je aankoopprofiel. Ga dus nooit uit van het maximale.

1) Property transfer tax

A large part of the buyer's costs are related to the transfer tax, as it is between 8 and 11% of the purchase price in Spain. A very high percentage that foreign people often do not expect! 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 legal help for your property purchase in your process? 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.

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 the costs involved when you want to buy a house in Spain. Orientate yourself on what the transfer tax will be in the region where you want to buy, what the notary fees are and compare these costs. You may of course always ask your questions to Pedro.

It is especially important to know these costs 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.

Are te buyer's costs higher than you expected? We understand that very well at holapedro. Possibly you can use your surplus equity value? Use our home equity check!

How to get a full insight into the buyer's 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 . 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 costs in Spain

Pedro's quick 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!

Calculate your purchase cost

Or rather first consult with Pedro?

What does a property purchase in Spain cost?