@The Australian wrote:
For new build property the purchase tax (VAT or IVA in Spanish) is now 10% and I guess you have to add on maybe 3% to cover other costs (notary, mortgage, etc).
there are other taxes as descri¡bed here: https://www.spanishpropertyinsight.com/tax-and-pensions/property-taxes-for-non-residents/
but as a rule of thumb I’d budget for 13% purchase costs, at least €200/month on local council taxes, insurance, maintenance, community fees, etc, and then say €10k to sell the place.
It all adds up, and when you compare it to renting I find renting usually wins.
(Oh and take Jake with a pinch of salt by the way)
Many thanks for your reply…but how can be there:
€200/month on local council taxes, insurance, maintenance, community fees
Let’s say I am interested in a brand new apartment in the Canary Islands where maybe the IVA is even lower (I think?) and I don’t want to sell the place, just live in it as main residence.
Prices for maintenance vary, but in Madrid for a 1 bed apartment with a pool, 24 hour consierge/security, lifts that need to be maintained, etc that also needs to be cleaned, lit at night, etc then I’d expect to pay around €100/month. It might be less in the Canaries. This information should be made available to you before you purchase a property anyway. The local council taxes (IBI) aren’t too high compared to the UK, and I can’t remember how much we pay in Madrid, but let’s say €50/month. I’ve also estimated €50/month for insurance and various unforeseens. If you want an alarm that might cost you say €20/month, internet/telephone maybe €70/month (depends on bandwidth, etc), on top of that you’ll have the usual bills (in the Canaries you won’t have to spend much on heating, but you might have to with air conditioning).
Obviously you know your circumstances better than I do so I’m just trying to give you things to think about. Even though everyone on this forum will argue the toss about practically anything, one thing everyone agrees on is that you should rent first before buying. Ideally for a year or so, just so you can speak to the locals and get a feel for the area and the potential pitfalls. Property purchase costs in Spain are high and you don’t want to be paying that 13% all over again because it turns out you don’t like your flat.
Also if you don’t plan to sell then you’ll need to look into Spanish inheritance laws (well you should do that anyway)