If you want to buy a house in Andalucia, but you are not sure what expenses this purchase can entail, this post is for you!
The price of a home is not the only factor to consider when buying a home. Thanks to the new Spanish mortgage law of 2019, the costs for the buyer have been reduced, but all the factors involved must still be considered.
If you do not apply for a mortgage when you buy your home, the expenses that you will have to assume as a buyer are the following:
- The notary’s office: It is usually between 500€ and 1000€. Buyers can choose the notary. Their fees are regulated by the state, so they will not vary from one to another.
- The registration of the property: The cost of the inscription of the property in the registry usually varies between 100€ and 500€.
- The ITP or VAT: These are two different taxes that you will pay depending on the type of property you are buying:
- If you are buying a newly built property, you will have to pay VAT on that property. In Spain this value is fixed at 10% with a reduced rate of 4% for social housing.
- If you are buying a second hand property, you will have to face the ITP, which in Andalucia is fixed in a staggered way, between 8% and 10% depending on the house price. There is also a reduced rate of 3.5% for those residents under 35 years old buying their main residence for a price equal or lower than €130,000.
If you apply for a mortgage, thanks to the New Mortgage Law of 2019, the expenses that the buyer must pay when acquiring his or her new home will not be increased in large amounts:
- Appraisal: only necessary if you apply for a mortgage. Sometimes banks assume this cost if the Mortgage loan is finally carried out with them. It is usually between 200€ and 600€.
- Copies of the deed: They are around 20€, a very small cost compared to the costs previously assumed by the buyer (stamp duty, notary, and mortgage registration as well).
If you would like to find out more about the costs you will have to pay when buying a property in Andalucia, you can check previous information here.