Becoming an Expat in Spain: Volume 11
Renting or buying a property in Spain – a rough guide
In general, if you are considering moving to Spain it is always best to do your research on different areas first.
Are you thinking:
Coastal
Rural
Urbinisation
English speaking areas
More traditional Spanish speaking areas
You may want nightlife with bars restaurants, or peaceful countryside. Clubs, sports and local activities may be a prerequisite for you and depending on your transport situation, you may need to consider public transport as well as local amenities and supermarkets.
With the Schengen restrictions in place, air b n b style renting is going to be a good option for you in the first instance and will enable you to try many different potential areas within your yearly Schengen allowance.
When you are ready to buy, the following will be of help.
If you need a mortgage, then you will find that most Spanish banks will only finance 80% of a property you wish to live in.
You will also need to factor into your costs:
The valuation of the property
The notary
The Land Registry
And
Taxes
You should have, on top of the purchase fee you require, a further 15% to cover these fees.
Fees will vary depending on whether you are buying a new or pre-owned home.
Property transfer tax or iva (v.a.t) will be applicable and is between 6% to 10% for a resale and 10% for a new build.
Stamp duty is often applicable also at 1-1.5%
Notary fees and Land Registry (escritura) fees are between 0.1% to 2% of the purchase price.
Legal fees will be 1-2% of the purchase price.
In addition, there may be:
mortgage fees;
Estate agent fees;
Property survey fees;
Connection of utilities;
Property insurance.
It would be a good idea to employ the services of a gestor (an advisor/personal manager) if you do not speak Spanish and these people will advise and help you navigate all of the legal complexities of house purchase in Spain and act on your behalf when paying many of the fees and taxes etc.