[Anonymous]

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.

[Anonymous]

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.

[Anonymous]

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.

[katy]

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

[Anonymous]

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 !!!!!!!!!!

[Anonymous]

Thanks to all that responded.

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

[Anonymous]

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

[Anonymous]

no probs dear!!

[Anonymous]

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

[Inez]

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.

[Anonymous]

@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.

[Author]

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