Cost of Purchase on Polaris World

Hi,  Can anyone help or point me in the right direction?  We have paid our first stage deposit on PW MM2, and are about to pay 2nd, not problem with that.  Im just trying to think about how much I need to save up over the next year or so (before completion) for costs over and above purchase price and IVA.  Purchase price is easy Ive got that, and IVA I have that too, but what other costs should I be saving for?  Ive got in my mind Stamp duty at 0.5%, Land Registry 0.5% and valia tax.  Im sure there are other costs for Notary?  Perhaphs there are others that I will need to cover too?  There are so many books/websites now that Im totally confused.  Ive asked PW to send me a list but all I get is yes of course nearer the time we will.  But I need to save now!  can anyone help?

Hi Ridgewells,

Just a quick pointer here. You mentioned PLUS VALIA TAX. This is the legal responsibility of the developer as he has made the profit on the land value increase since he bought it, NOT YOU.

Check your contract & see whether you signed to pay it. If you didn't, DON'T ! Sort that out now.

Regards,

Janice

Janice,  thanks Ive just checked and you are right, Im not liable for the Valia Tax.  (these books you read that are supposed to help do nothing but confuse!)  Are you aware of what else Im liable for other than Stamp and Land registry?

Claire

Sorry, Claire, I'm not able to help further as I don't know all the info these days.

However, never fear as there are many members who DO know.

We completed over two years ago &  we signed the SPANISH contract (which we didn't understand) after we'd read through the ENGLISH copy except the English copy conveniently had the clause about who pays the builders taxes omitted.  We only knew about this when the financial breakdown arrived & when we said we were not paying the Plus Valia tax we were shown a translated version of what we'd signed, saying we agreed to cough it up.

As our agent was meant to have the legal team check the contract & obviously hadn't (hope you have an independant lawyer) we complained they had put us in that position & we expected them to pay it. The agent said it would only be around 25 - 40€ (no doubt hoping we'd relent) but we stuck it out. Turned out it was 1345€ !!! The agent paid it.

So do not pay it if it turns up in your financial breakdown especially as it says otherwise in your contract.

Janice

As a Buyer you are liable to pay Stamp Duty of 1%, Notary and Registration costs (in additional to transfer tax or IVA). You may also pay costs for the physical registration of the deed and payment of tax / taxes to a gestoria or your lawyer as from experience some firms tend to charge this in isolation of the conveyancing fees. Notary and Registry fees are regulated by law and vary depending on the value.

Beyond the above should you be taking mortgage finance various additional costs will again apply. In respect of plusvalía your contract should make it clear who will make payment of this tax.

More generally, I would have hoped that you lawyer or representative would have fully explained the costs to you before you proceeded but trust that this is of assistance.

It won't be 7% as that just covers your IVA on a new property or transfer/registration tax on a resale.

For properties up to 200,000 euros, you should allow 11% for extras including tax.

For properties 200,000 to 250,000 10% should be allowed

Over 250,000 8 or 9% should be factored in.

Community charges are not include in the above as these are ongoing running costs.  I believe the average on a new build nowadays is about €400 per year but this will, of course, vary greatly depending on the amenities (parks, swimming pools, street lighting etc.)