[Anonymous]

Hi

Can anyone explain something which I’m struggling to get my head around. I’m just about to complete a EUR 320k purchase for which I’m borrowing 240k. My lawyer has given me a breakdown of the fees as follows:-

MORTGAGE: Tax value 369,805.30 €
Taxes (1%) 3,698.05 €
Notary (estimated) 1,100.00 €
Registry (estimated) 700.00 €

Mortgage Total expenses 5,498.05 €

PURCHASE: Price 320,000.00 €
Stamp Duty (7%) 22,400.00 €
Notary (estimated) 1,100.00 €
Registry (estimated) 700.00 €
Legal Fees (0,9%) 3,340.00 €
Total Purchase expenses 27,540.00 €

Why would the ‘Mortgage Tax Value’ be €369,805 when the mortgage is only €240k and if the taxes he mentions at 1% are I.A.D.J, why is this also based on a figure €49.8k above the purchase price? Apologies if I’m missing something obvious, but I’d be grateful if anyone can explain where the €369,805 comes from. (couldn’t get a hold of my lawyer today to ask him, the only thing I can guess it might be to do with is the ‘catastral’ value?)

[Anonymous]

Perhaps 369,805 is the “mortgage guarantee” which include your 240.000 plus interests and other fees and is fixed by the bank and after a basis in order to calculate IAJD but you could check another bank with lower value. So regarding mortgages this tax is not calculated just on the basis of the money borrowed
IAJD TAX 0,8-1% of the 240.000 – 369.805 It depends of The Region and of the bank
Notary (estimated) 700€
Registry (estimated) 400€

PURCHASE: Price 320,000.00 €
Transfer Tax (6-7%) 19.200 – 22,400.00 € It depends of the Region
Notary (estimated) 600.00 €
Registry (estimated) 300.00 €

You could ask for the invoice of Notary and Registry Fees after the purchase and for the receipt of IAJD and Tranfer Tax paid as well

[Author]

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