Buying Costs?

Hi!

I am now in the position to consider a move to Spain (Marbella area) and was wondering if someone could give me a breakdown of buying costs? I've been told to budget approx 11.5% on top of purchase price but would like to know what the costs relate to.

I am initially considering renting for 6 months to a year as I will be moving alone and want to be sure I have made the right decision!

All replies will be gratefully received.

Thanks

I've been told to budget approx 11.5% on top of purchase price

Biggest chunk is the 8% transfer tax in Andalucia (up to 400k€ purchase price) on resale property.

Other costs are lawyer 1% (approx negotiable these days) and other minor disbursements (notary etc) should only add up to around 10% but 11.5 or 12 is about right if you are taking a mortgage.

Hi and thanks for the reply.

I'm not needing a mortgage ( I was told to budget 14.5% on top of costs if I was) which is why I am questioning how the percentages are broken down. The extra 1.5-2% is a sizeable amount on any figure.

Also, its rather worrying reading about people being hit with an after sales tax based upon what the 'value' of the property is, so this is something else I will be looking into.

Kate 

We purchased property near Marbella in 2005 and all I can say is the add on costs are substantial compared to say the UK, we paid around 12% in total then but I guess its similar now I do know the goverment reduced it for a short period but only on new properties mainly to help the BANKS sell the vast stock of UNSOLD props on there books.

1.Get a good estate agent I know a few.

2.Get a good lawyer I know a few of these.

3.Rent for at least 12 months so you can see all the seasons its damned hot in summer and very busy in August with the school kids ,winters are sometimes cold and the rain can be torrential.

4.Get a good surveyor some of the buildings are very poorly built.

5.Try to avoid banks where possible there fees are eye watering.

6.Dont buy to cheap ,yes there are bargains on the bank stuff but the COSTA DEL SOL is propped up somewhat by the SUPER RICH.so prices are higher generally than other parts of SPAIN.

Having said all that its a GREAT place to live and you will make friends very easily

Regards 

Rod

Kate

This tax, called Complementaria, is levied when the tax office believes someone has purchased a property at less than the minimum value that they hold for the property - they work this out by multiplying the catastral value (found on the IBI bill) by a coefficient for the area is which you are buying (example Marbella was 1.27 in 2013)

The good news is that you can check this before you go through with a purchase and any good lawyer (there are still some) will in fact check this as a matter or procedure if you are buying at a knock down price.