What are the costs of buying a home?
Buying a home involves more than just the cost of buying the property. Sometimes, buyers are unaware or do not calculate that, along with the price of the house, there are other costs that must be calculated, both to estimate the mortgage in case of needing financing for the purchase of the house, and to make the payment of the real estate with available savings.
Currently, the cost of buying a house is between 10 and 13 percent in addition to the cost of the house. What are the costs of buying a home?
Expenses in the purchase of the house for the buyer
Is going through the notary's office necessary? Yes, since it is the notary who attests to the signing of the contract of sale and turns it into a public deed (makes it official). In the same way, the notary is obliged to clarify the doubts that any of the parties to the real estate transaction may have.
How much does the notary's office cost? Although it is true that depending on the province and even the city, there are price differences, the fees of notaries are stipulated in such a way that they cannot exceed the maximum set by law.
The most common is that the cost of the notary is estimated based on the value of the operation, ranging from about 600 to 900 euros on average in Spain.
Registration in the Property Registry
This procedure can be carried out individually -without the concurrence of a third person- or through the notary or the corresponding manager. Regardless of the modality you choose, you will have to pay the corresponding fees. These can range between 400 and 600 euros.
To properly evaluate the cost of the Property Registry for the sale of your home, you can see in the BOE the fee that corresponds to you, which is calculated based on the price of the house.
Expenses of buying a new home
In addition to the expenses listed in the preceding paragraphs, if you buy a new home, you also have to consider the following expenses:
VAT payment: free new homes are taxed with 10% VAT, so within the value of the home you have to calculate this extra, which is a fixed rate for newly built homes. On the other hand, if it is a public housing or an officially protected housing, you will be able to benefit from a reduced VAT of 4%.
Expenses for buying a second-hand home
The Property Transfer Tax (ITP), which ranges between 6% and 11%, depending on the Autonomous Community in which it occurs. Be careful, that, unlike VAT, the ITP is paid with the model 600 of the Treasury.
Extra expenses when buying a house with a mortgage
If the buyer has to resort to credit financing, he will incur an extra cost:
Home appraisal. The appraisal of the home is mandatory by law, and is claimed by the banking system to know the price of the home, the value through which it calculates the amount to be lent.
How much does the appraisal cost? Being a cost based on the value of the property, it is again oscillating, although it remains on average in Spain between 300 and 600 euros. Of course, it is the owner who decides who rates the home, and never the bank.
Tax on Documented Legal Acts, which is signed at the time of the signing before a notary of the contract for the sale of the home and the registration in the Property Registry.