Owning a house in Spain obviously means spending money on your house. In the first place when you buy the property, apart from the `price of the house you have to pay notary costs, transfer taxes (10% of the declared value at this moment in the Comunidad Valenciana) and the property register.
Apart from that you may choose to get professional help, a lawyer to help you with the legal side of the purchase, an architect to check the property, a real estate agent to help you find the property…
You may want to buy with a mortgage, and even if this is not the case the bank will charge you with a fee for issuing a bankcheque….
Here I will only comment on the financial side of the purchase:
Let’s say you want to buy a nice penthouse first line beach in Javea, the house of your dreams… this property comes with a price tag, € 300.000!!!!! WOW
You have saved some money, after all you’ve been working for 40 years and bit by bit you’ve been able to scrape together the amount of € 100.000. This means you have to get another € 200.000 from the bank, right??
Yes, the house costs € 300.000, you have € 100.000, the difference is € 200.000. But you have not counted with the additional costs. Let’s start:
- the price of the property € 300.000
- Notary and register costs, let’s count 1% to be on the safe side: € 3.000
- transfer tax: 10% of € 300.000 = € 30.000
- legal survey / lawyer: between 0,5% and 1% (let’s say € 2.000)
- architects survey: could be anything between € 500 and € 1.000 (let’s say € 500)
- Bank valuation: could be anything between € 300 and € 500 (let’s say € 300)
- costs of mortgage: starting price at € 7.500 (if you get a mortgage, rather difficult nowadays, but that’s quite another story)
- bank cheque, could be about € 300
- commission for real estate agent normally will be paid by the seller
So more than € 40.000 on top of the € 300.000 you counted.