Arrangement expenses

Expenses of sale.

  • Notary fees and management services.
  • Property register.

In case of purchase of second-hand housing:

  • Transfer Tax

In case of purchase of new housing:

  • Value Added Tax. VAT (7%). In social properties the VAT is 4%. In the Canary Islands this tax is IGIC, in Ceuta and Melilla is the IPSI.
  • Stamp Duty tax, in cases that are subject to VAT is generally 0.5%, 0.1% in the Autonomous Communities with foral regime.
    All taxes are paid on the purchase price which is fixed in scriptures.
    After purchase the tax on the increase in value of land must be paid, usually by the seller.
    Finally, annually, the Tax on real estate is paid.

Mortgage expenses.

  • Banking:
    At the beginning of the loan there is a unique fee which covers all costs involved in granting and called "origination fee." It is a percentage of the loan amount, to be paid once.
    The early cancellation fee is a percentage of the amount you pay in advance. Will be paid at the time such payment, in whole or in part is done. (For variable rate loans can not legally exceed 1%).
    Each bank must communicate these percentages to the Bank of Spain.
    All other expenses are unrelated to bank.
  • Appraisal:
    The appraisal is made by an independent company and is used to determine the current market value of the home.
    The loan amount is usually not exceed 80% of the appraised value in primary residence and 70% in other cases. Its cost is between 120 and 200 Euros. This charge is payable if the loan does not get formalized.
  • Formalization:
    Just like the Purchase contract, the mortgage loan must be formalized in Public Document and registered in the Property Registry. Both scriptures are usually carried out in the act. Scripture and registration of the mortgage also have expenses.
  • Stamp Duty Tax:
    Is calculated, not the amount of the loan, but rather on the amount constituting the Mortgage Third Party Liability (amount calculated by adding the percentage of the loan amount and interest, costs and expenses). The amount of the Mortgage Liability is usually between 170% and 300% of the loan amount, depending on the bank.
After signing the contract >