The additional costs that the purchaser of a property in Spain is expected to bear are listed below. These costs do vary according to area (the coast usually being higher) and from estate agent to estate agent.
- Estate Agents Commissions. Ultimately, these are almost always paid by the buyer (even if the commission is included in the sellers price) and vary enormously, also it is rare for the estate agent to come clean and tell you what commissions are being charged. You can ask your estate agent and he will, without doubt, give you a figure but unless you know how much the seller of the property is getting you cannot be sure you are being told the truth. The average commission in Spain is 6% but even today it is not unusual for commissions of 15, 25% or more to be charged. Like most estate agents we include our commissions within the property price as displayed on our website, but not everyone does, so beware you may have a hefty commission to pay on top of the property price.
- Transfer Tax. The buyer almost always has to pay a 8% transfer tax (this increased from 7% on the 1st Jan 2012). This tax is based on the Escritura or official price of the property which is generally less than the actual price you are paying for the property. For cave homes, cortijos and fincas the official price can be substantially lower than the commercial price. As an example a cave home that costs 75,000€ may have an official price of 50,000€, thus your transfer tax should be 4,000€. Transfer tax has to be paid within 30 days of completion of your purchase.
- Legal Fees. This is normally 1% of the property price, however some solicitors charge a fixed rate, this can be from around 750 up to more than 1,000 Euros, so shop around. See following section for an English speaking solicitor in this area.
- Notary Fees. When you come to complete on your purchase, you will go to a Notary or government lawyer who will ensure the contract is legally valid and that the necessary taxes are being paid. Notary fees vary with locality (it is more expensive on the coast) and with the price of the property. In this area you can expect to pay between 200 and 400€. Sometimes the Notary Fees are split between buyer and seller, sometimes the buyer pays the total fee.
- Land Registration Fees. This again varies with the price of the property you are buying, normally you can expect to pay 150 to 300€.
- Gestion or Management Fees. This is a charge made by the estate agent for transferring electrical and rate bills, etc. to your name. Expect to pay 150€.
