Many foreigners regard villas for sale in Catalonia because of the moderate price. The pre-owned market is especially attractive. The rational investor wonders how much this value will be final. And this is the right way of thinking: there are additional expenses, often unexpected. It is better to know about them in advance.
Tax on the resale property purchase
For pre-owned houses in Spain, the most important tax to be aware of is the Property Transfer Tax (ITP). In this situation, the rate is based on the interest applied to the announced value of the property and on the region where the property is. As practice shows, the rate is from 6% to 10%. The following rates apply for 2022:
Andalusia – 7.0%;
Aragon – 8.0%;
Asturias – 8.0%;
The Balearic Islands – 8.0%;
The Canary Islands – 6.5%;
Cantabria – 10.0%;
Castile-La Mancha – 9.0%;
Castile and León – 8.0%;
Catalonia – 10.0%;
Ceuta – 6.0%;
Madrid – 6.0%;
Valencia – 10.0%;
Extremadura – 8.0%;
Galicia – 10.0%;
La Rioja – 7.0%;
Melilla – 6.0%;
Murcia – 8.0%;
Navarra – 6.0%
The Basque Country – 4.0%.
It should be noted that the lower tax is often applicable in Spain for the multi-child families, the disabled and the young. For instance, in Madrid, multi-child families purchasing property will pay 4% of the announced price as property tax, given that the property they purchase becomes their main home.
Payment for services of a gestor
Discretionary expenses when buying a home is hiring a gestor, a person who can do tax calculations and other paperwork. Hiring such a consultant can be especially helpful for emigrants who do not speak Spanish.
Additional mortgage charges in Spain
In addition to the accumulation of the initial payment and the payment of the mortgage itself, there may be other expenses. If you intent to buy property in Spain through a mortgage, be aware that it is possible to come across with some additional unexpected levies: for example, the loan amount and mortgage terms may vary if you are not a resident of Spain.
Property valuation
If the buyer takes out a mortgage loan, he will have to pay an appraiser for the property valuation. The bank often arranges this. After the property valuation, the bank informs what funding interest it can provide. Usually Spanish banks give a loan up to 80% of the actual or estimated value.
In 2022, the valuation costs €250-600, based on the company implementing the process, the property type and its valuation. Some banks, but not all, cover these expenditures. The evaluation result is efficient for 6 months from receipt.
Account opening fee
The fee may be charged by some banks for opening an account or obtaining a housing credit, and this levy can be up to 2% of the cost. However, there are currently a lot of banks in Spain that do not apply these fees. Note that you may be required by some banks to obtain home or life insurance to qualify for certain mortgages.
Start your search for housing in Spain
So, now you have gained new knowledge in the field of buying property. It’s time to start looking for your dream home in Spain! A convenient search is implemented on Spain-Real.Estate. Numerous housing variants in lovely places are in wait for their buyer, and the specialists of the aggregator site can tell you more about housing credit, registration and other significant points of a future transaction. Start searching for housing in Spain now!
