- Additional expenses
- When buying a new home, the buyer pays:
- Acquisition of secondary housing is accompanied by the payment of the following taxes:
- Property Taxes
- There are also annual taxes that every property owner pays:
- Annual taxes on commercial real estate are as follows:
- Rental taxes and insurance amounts
- Buying real estate mortgage
- Communal payments
- Without reliable helpers the risk is great
Spain is one of the most loyal countries in relation to non-residents purchasing real estate there. There are no restrictions, moreover, Spain participates in an international agreement on double taxation, so that the buyer, who owns housing in several countries, pays taxes for it only in one state.
Please be aware that your expenses on the acquisition of real estate in Spain will be approximately 11.5% above the cost of the selected object! To purchase requires a minimum of documents: a valid passport and a visa, as well as the NIE - the identification number of a foreigner issued in a special police department. You will need it in order to obtain a residence permit and make major purchases, take loans from banks. The cost of getting the number is 9.27 euros (state duty).
Acquisition real estate in Spain will require the following additional costs of registration, which depend on which object serves as the subject of the transaction - primary or secondary.
When buying a new home, the buyer pays:
- notary fee for certification of documents ; it depends on the cost of housing and land, usually its value is in the range of 300 euros;
- registration fee for entering information about the ownership of the State Real Estate Register within the limits of 200-750 euros;
- State duty IVA - analogue of the Russian VAT, it is 10%;
- stamp duty for documents - 2% of property value.
Acquisition of secondary housing is accompanied by the payment of the following taxes:
- a property transfer tax (ITP); this is 10% of the contract amount and already includes a stamp duty;
- notary fee of 300 euros
- registration fee 200-750 euros
- office expenses 200-400 euros
In addition, you will need the services of a lawyer (if desired), who will accompany the transaction, check its legal purity, help prepare all the documents. The cost of a lawyer is usually 1% of the transaction amount.
You will also need to open a bank account. The cost of issuing checks will be (0.3–0.6% of the amount). Commission agency pays the seller of real estate.
Upon completion of all the formalities of the sale process, the owner receives Escritura Publica - a certificate of ownership.
Above taxes paid one-time during the registration of the sale.
There are also annual taxes that every property owner pays:
- real estate tax (IBI);
- tax on imputed income, Impuesto Sobre La Renta;
- tax on garbage collection - about 100 euros per year;
Annual taxes on commercial real estate are as follows:
- IVA or VAT - its value is 11%, and in some businesses it is 21%, paid every quarter;
- income tax depends on its value and can reach 35%.
In order to reduce taxes and current purchase costs in Spain, as in Russia, in
The contract of sale (escriture) often specifies the reduced value of the property.
Rental taxes and insurance amounts
If the property acquired by a non-resident is leased, the owner is obliged to submit a income statement quarterly and pay tax. The rate is 24.75% of the profits.
It should be said about real estate insurance. It is also considered an expense for its maintenance. Its size depends on the sum insured and the type of housing. For example, the insurance payment for an apartment of 100 square meters will be about 180 euros per year.
Buying real estate mortgage
Spanish banks are willing to give mortgage loans non-residents, for which you can pay up to 60% of the cost of housing. There are a number of credit programs for foreigners, for example: 50% mortgage at 3.2% per annum, 60% - at 3.7%. Banks may issue a 100% loan for the purchase of mortgage properties. Mortgage is issued for 25-30 years, provided that it must be paid upon the borrower reaches the age of 75 years.
When buying a secondary property with a mortgage loan, add 10% to the transfer tax, the cost of registration of documents, legal services and bank expenses to the total amount of expenses. A total of approximately 11.5% is obtained.
The cost of home ownership also includes utilities (communidad). Their size varies in regions and depends on the category of housing. For example, an apartment of 100 square meters with two bedrooms, two bathrooms, a common room, a kitchen and a terrace will cost about 700–800 euros per year. If the accommodation is located in a condominium, you must add about 150 euros for cleaning the site and caring for the communal pool.
The maintenance of a typical villa of 150 square meters for a family of 3-4 people will cost 800-1000 euros per year, and a luxury villa with a working pool of 3-5 thousand euros per year.
Tariffs for electricity, water, gas, garbage collection and sewage treatment in different regions of the country vary, depending on the level of consumption, the time of year and the supplier company. Heating in Spain is carried out using natural gas and is paid on the fact of consumption. Water costs in summer usually increase as the price rises due to the hot and dry climate. Prices for drinking and technical water are also different.
Without reliable helpers the risk is great
It is absolutely clear that only a specialist who is well acquainted with the country's legislation, the specifics of taxation depending on the situation, the prices of objects and regional rates for maintaining housing, can accurately determine the full amount of funds needed in excess of the payment for real estate. In order not to be deceived when buying a home - and this happens in all states - you should not save on the services of real estate agencies, which will be engaged in the selection of housing, and lawyers accompanying each stage of the transaction. All financial documents and accounts presented to the buyer should be carefully checked so that the “double commission” common in the real estate environment does not appear under the type of payment for additional services - only the seller pays by law.
The buyer should also be clearly aware that buying a property through the catalog is simply dangerous. With the help of Photoshop, you can concoct a luxurious villa from any ruin. So without a trip to the country, it is better to be accompanied by a lawyer. The sales contracts concluded in Russia in Spain are invalid! And if the deposit is still paid, then it can almost never be returned even through the court. Do not risk big money, choose intermediaries with experience and positive reputation, and also be vigilant yourself.
Use our information real estate agency and pick up objects on our site. We will always be ready to respond to all requests and save your money and nerves.