Purchaser’s Costs

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This topic contains 10 replies, has 8 voices, and was last updated by Profile photo of Anonymous Anonymous 7 years, 3 months ago.

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  • #55168
    Profile photo of Anonymous
    Anonymous
    Participant

    I’m aware that purchasers costs / tax for foregin buyer’s is 10% of the agreed sale price. Two questions – Is this cost that same regardless of the sale price and secondly is this cost the same for Spanish residents also?

    I know that stamp duty in the UK ranges from 1 -4% but this is dependant on the agreed price and this stamp duty rate is applicable to both resident and foreign buyers.

    Thanks in advance.

  • #93915
    Profile photo of Anonymous
    Anonymous
    Participant

    The tax is not 10%. It is only a guide to cover other related expenses.

    The tax/VAT is 7% depending who you are buying from. The tax is the same. However if you buy land or a Villa. This will increase t0 16%.

    If there are any changes. I am happy to be corrected.

  • #93918
    Profile photo of Anonymous
    Anonymous
    Participant

    Purchase costs are 7% either for resale properties (PPT – property purchase tax) or new build 7% IVA (VAT)

    The purchaser will then pay the notary costs – around 600€ these days, plus land registry costs – around 500€.

    Other costs are only applicable such as lawyer 2000€ – and mortgage costs should be around 1% of amount borrowed plus taxes plus whatever the broker may wish to add commission on the mortgage – between 1-1.5%.

    There could also be gestion costs of about €800 for a morgage.

  • #93921
    Profile photo of katy
    katy
    Spectator

    Better still…don’t use a broker, they are not needed.

  • #93927
    Profile photo of Anonymous
    Anonymous
    Participant

    Marcoloco, best to check out “intelligence” page on this website before asking public for facts – shakeel, the transfer tax for “villas” is not 16% !! it’s the same as other residential property….. 16% is for land – correct!!, commercial premises, garage spaces unless bought and signed for at same time as residential space ……….. Katy, exactly !!! steer clear of mortgage brokers !!! at least here in Spain – unless you need a bent valuation, forged references etc – then 1% to 1,5% is fine…….. with the plunging prices if you need a bent valuation you probably should rent and save for a deposit !!!!!!!!!!

  • #93928
    Profile photo of Anonymous
    Anonymous
    Participant

    Thanks to all that responded.

    UBEDA good advice! Funny, the intelligence section part of this site that i’ve overlooked. 😳

  • #93930
    Profile photo of Anonymous
    Anonymous
    Participant

    UBEDA, thanks for clearing the VAT of 16% between land & Villa. Cheers

  • #93931
    Profile photo of Anonymous
    Anonymous
    Participant

    no probs dear!!

  • #93950
    Profile photo of Anonymous
    Anonymous
    Participant

    If a broker is to be avoided, who are the best mortgage providers at the moment ?

  • #93952
    Profile photo of Inez
    Inez
    Participant

    Depends on what you want, what terms you require and your paperwork to substantiate your request.

    A good broker can steer you the right way and ensure only the correct information is submitted and explained to the lender.

  • #93958
    Profile photo of Anonymous
    Anonymous
    Participant

    @Villan wrote:

    If a broker is to be avoided, who are the best mortgage providers at the moment ?

    Abbey/Santander are prob. the biggest and the most ‘keen’ in the Spanish market given the present climate.

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