Buying a property in Spain not only involves paying the house price, but you will also have to cover a series of expenses related to the purchase process. In this article, we will tell you what these expenses are.
What expenses are involved in buying a property in Spain? ⬇️
In order for a property purchase to be registered in the Land Registry, it must be formalized in a public deed before a notary, which entails certain expenses, including:
- Notary fees for drafting the purchase deed. The notary fees are determined by the official notarial tariff, which has not been revised for a long time (it was approved in 1989). You can find it on this website. All notaries in Spain apply the same prices, although they may offer discounts of up to 10%. In addition to the amounts established in the tariff, VAT should be added, and there may be additional costs if copies of the deed are requested. For example, the purchase of a property for a price of around 200,000 euros may cost about 500 euros in notary fees.
- Land Registry fees. Similar to notaries, registrars of property also have a legally established tariff. You can download it from this website. Although registration in the Land Registry is not mandatory, it is advisable as it provides protection to the buyer against third parties through the publicity of the registration.
The fees of both the notary and the registrar may increase if a mortgage is requested to finance the purchase.
1️⃣ Cost of administrative services: If you hire the services of an administrative agency to handle tax payments and registration of the property purchase in the Land Registry, they will charge a fee for their services. Each agency can establish their own prices.
2️⃣ Legal fees: It is possible to hire a law firm specialized in real estate law to advise you throughout the process of buying a property in Spain, especially if you are a foreigner. Each law firm sets its own fees independently, although there are guiding criteria within the Bar Associations. The involvement of an administrative agency and a law firm is not mandatory, but it is recommended to streamline the procedures and ensure legal security in the transaction.
3️⃣ Real estate agency costs: It is possible that a real estate agency is involved in the transaction, and they usually charge a percentage, ranging from 3% to 5%, based on the sale price. In some cases, real estate agencies charge fees to both parties, so it is necessary to inquire about their services before hiring them.
Who pays for the expenses of buying a property? 💰
The regulation regarding who is responsible for paying the expenses of buying a property is derived from Article 1455 of the Civil Code, which states the following:
The costs of executing the deeds shall be borne by the seller, and the costs of the first copy and any subsequent ones after the sale shall be borne by the buyer, unless otherwise agreed.
This regulation means that if nothing else is agreed upon, the Civil Code applies. However, the buyer and seller can agree, for example, that all the expenses of the property purchase will be borne by the buyer.
If you sign a contract of deposit, you must expressly regulate who will pay for the expenses of the property purchase to make it clear from the beginning. To determine the amount of each expense, you can consult a notary and request a quote. It should be noted that the expenses of the property purchase can reach approximately 10% of the purchase price, taking into account the taxes as well.
In conclusion, before buying a property in Spain, it is necessary to make calculations based on the circumstances of the transaction to determine the expenses of the purchase and know the total amount of the operation before signing. Contact us, and our team of expert lawyers will advise you on the steps to follow and the documentation you will need.