Expenses of Purchase Sale in Andalusia
What are the expenses to buy a house?
When we are going to carry out an operation such as the sale of a property, a series of expenses appear that must be shared between the buyer and the seller.. Knowing them will facilitate the adjustment of our budget.
It is vitally important that you know the common expenses that you will have to pay during this process..
– The real estate commission for the procedures carried out in the sale.
– The expenses of the legal situation of the property and investigation of the owners.
– The expenses of the deed carried out in the sale.
To these common expenses are added other, such as if your home has a mortgage charge. This charge will have to be canceled.
how do i cancel it? Paying the mortgage entity, the outstanding capital of loans plus the registration cancellation of the mortgage. This process must be carried out in the Property Registry by presenting a notary certificate issued by the mortgager stating that the mortgage loan has been paid and that the property is free of previous mortgage charges.. This process has a cost of 300 euros approximately, and it is absolutely essential to carry out.
to the above, direct taxes are added. What are these taxes? Those originating from the transfer of property.
– Surplus value or increase in land value, which will vary depending on each municipality.
– The equity variation, It depends on whether you sell a legal entity or a natural person, which will vary if the difference between the purchase and sale values has generated a great benefit for the seller.
Ahora bien, are you the homebuyer?
It is important that you know all the expenses that you are going to face when buying a property.
The first thing you have to know is that you are going to assume most of the expenses associated with the sale.
For the sale we find:
– real estate expenses. As a general rule, it is charged between a 3% and a 7% depending on each geographical area. This will vary depending on the area in which we are obtaining the property.
– Property verification costs. These expenses vary between 11 and the 100 euros, depending on the information we need, and includes the simple note, simple copies of deeds and cadastral certifications.
Major expenses of buying a house.
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Expenses of constitution of the deed.
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Notary fees.
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Expenses Registration in the property registry.
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How much does the land registry cost??
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The property registry has variable fees and an approximate cost between 600 and the 1000 euros depending on the value of the property. You can check the rates online.
And what role does the agency play?? La función principal de la gestoría sería la inscripción de esa escritura notarial en el registro de la propiedad. For which we have to advance a provision of funds.
The provision is money that we give in advance so that they can process the registration in the property registry, plus other procedures that we have entrusted to the agency.
In the event that the final expenses are less than the provision, they will refund us the amount that was left over.
Services offered by the agency.
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Fundamentally the change of ownership of ibi, real estate tax and change of supplies.
Yes, and it is that as you buy a house, the different administrations are already waiting for you to charge you the different rates or corresponding taxes. So in the face of the town halls you have to inform that the house is yours so that they pay you the ibi tax.
As I was saying, some agencies also offer the service of change of ownership of supplies, as well as the change of ownership report to the community of owners of your new house.
Regarding supplies, will mainly be water, light and gas.
Regarding the community of owners, we must inform you that we are the new owners. To charge the community of owners fees to your bank account.
You can do almost all of this, but I think it is worth delegating it to a good real estate agency.
Among the main functions of the agency is the management of what will be the highest cost associated with the purchase of your home.
The liquidation of the property transfer tax.
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Transmission taxes.
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The Treasury loves that we buy and sell houses, so they are waiting for our beloved bricks to change owners so they can relate to us.
We have to differentiate between the house being new or second-hand work.
In the case of second hand, the tax that we will have to settle will be the property transfer tax.
the ITP, or property transfer tax and documented legal acts, It is the tax that records onerous patrimony transmissions, in addition to corporate operations and documented legal acts.
In our case, and although our only patrimony is our house, Well, we will have to pay for the purchase of our second-hand home.
If the house that you are going to buy it's new, newly built, in that case you will have to pay the VAT and the documented legal acts tax.
We speak in the case of buying homes in Spain.
And it is that in the event that you buy a newly built home, you will not pay ITP.
But do not think that you escape.
instead of ITP, you will pay VAT, Value Added Tax.
Because the Treasury differentiates between the added value of a new house and the second-hand transmission, which apparently does not add value.
VAT is not paid for a new house, the VAT of a new house is in the 10% of the value of the house.
Además, You will have to pay tax on documented legal acts, which oscillates between the 0,5 and the 1,5%, depending on the autonomous community.
In second-hand homes, he puts a hand in us for transmitting them, but not because there is more theoretical value.
We do not forget that when we buy a house 25 años, there will always be a more worn out asset than a new one.
What makes us pay the difference is the illusion of land value.
But that's another topic, We'll talk about the value of the houses.
How much do you pay for the ITP?
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for keeping it simple, the ITP is between 5 and the 10% on the purchase price of the house, and it will depend on the autonomous communities, in the case of Spain, where is the good.
ITP, second hand houses, Vat, new houses.
We have to settle the ITP before the Treasury of the autonomous community where the house is located.
While VAT is paid to the builder of the house, and he will liquidate it to the Treasury.
The difference between the ITP from some communities to others, We are going to expand a little more with the ITP, since the purchase and sale of second-hand homes represents more than one 85% of the
transactions.
as we said, the percentage of ITP to pay depends on the autonomous community in which the property to be purchased is located.
And because you get a simple idea, in Madrid amounts to a 6%, un 4% in the case of large families, while in Catalonia it is a 10%, un 5% in the case of large families.
And up to here all the main expenses of buying a house, let's see next.
The expenses linked to the constitution of a mortgage.
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Since the entry into force of the Law on Real Estate Credit Contracts of the 17 June 2019 the intervention of a notary is mandatory to protect the person who contracts the mortgage.
Mortgage expenses that the bank must assume.
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The mortgage has some additional costs, in addition to the banking, What should the bank assume?.
Mainly notary fees for the mortgage, the amount of the mortgage registration fee, the expenses of the agency and the legal data tax documented by this mortgage.
Expenses associated with the mortgage that the buyer must assume.
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The appraisal will be made by an independent professional entity that the buyer chooses.
Some entities may assume the costs of this appraisal voluntarily. But it is not usual .
– The second will be the copies of the mortgage deed, apart from the simple copy that the notary sends us.
– And the third thing will be the home or life insurance that the bank can invite us to set up..
These insurances will cover the risk that our house will disappear or that we will not be able to face the amortization and payment of the mortgage installments for different reasons..
Unemployment, For example, or let's hope not, death.
Calculate how much your mortgage can cost with a simulator.
If you are interested in knowing how much a mortgage can cost, I advise you to use this mortgage simulator.
We recommend that you consult it to find out what capital you can finance.
These simulators will give you an approximate offer for your best mortgage and a very accurate idea of the monthly fee you can pay., if they grant it to you, Of course.
Did you know that less than half of the people looking for a mortgage compare between more than two banks?
Our advice is that you do not stay with a single offer.
If you think you are going to be paying a mortgage… by 20, 30, 35 years or the rest of your life at this rate.
If we live that long, pay attention to the interest rate and a good mortgage study.
And I tell you to pay attention because having good advice when taking out your mortgage can save you a lot of money over time.
I give you an example, million euro house, contributing 300.000 euros and the rest with a variable rate mortgage at 30 años. The difference over time between a Uribor variable mortgage plus 0.50%
are 58.758 euro interest and that of Uribor more 1% 120.378 euros. The difference is 61.000 euros, more than 61.000 euros difference in interest.
That is why many people decide to buy their house with Planetacasa. At Planetacasa we help our clients to buy their home by offering them the best advice to find the home of their dreams, saving them time and money..
In the example above you see a saving of 61.000 euros in a house of a million.
That's a 6,1% on the purchase value.
If you add to this the search time and the security of going with an expert plus the discount in the final price negotiation, the price of life.
At Planetacasa, thanks to Maxicredit, we always offer our clients a personalized mortgage study in which you will obtain the best mortgages on the market and all for being our client..
Other expenses when buying a house.
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Some people do not take into account some extra expenses or commissions that arise during the purchase of a house.
For example, the bank commissions for transfers in the Arras contract.
The initial deposit as a reservation of the house is not an expense associated with the purchase, but the transfer associated with said deposit is..
The initial deposit indicated in the Arras contract is usually a transfer in most cases, which has financial costs when making a transfer.
The Arras
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They are usually around 10% of the price that we have offered to close the house and the cost of that transfer will depend on what you have agreed with your bank.
Talk to them before formalizing that transfer so you are not surprised.
Expenses of the first month of the purchase of the house.
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And it is that the first month of having your house can come a surprise in the form of unexpected instant receipts in your account.
Many things are coming together and very soon, so I advise you that when doing your numbers, reserve a small amount so you don't get caught off guard.
And what will come to you at the end of the month??
The first installment of the mortgage, home insurance and life insurance if you have it.
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From the precise moment you receive the mortgage money to buy your house, the time begins to run for which you pay interest and installments for what you owe.
You may find yourself signed one day 25 and the day 30 have the first part of the proportional installment of your loan.
Don't be surprised!
and summarizing, to synthesize all the steps I would tell you, any home purchase, in our case in Spain, carries a major cost.
I mean,
– First, the agreed purchase price for the home.
– Second, the property transfer tax if the house is second-hand.
or VAT, more documented legal acts in the case of a new construction home.
– Third, notary and property registry fees.
– Room, agency expenses for processing the Ibi and added services.
– Fifth, in case of resorting to external financing, the appraisal and commissions and insurance added by the bank.
– Last and Sixth, pay attention to expenses from the first month and transfers.
Example:
We are going to put the case of a second-hand home purchased in Spain.
And to round off, and as we like Planetacasa, we see our beautiful home again whose purchase price is one million euros..
This house, if we buy it in Madrid, would have to settle a property transfer tax of a 6%, what would they mean 60.000 euros.
Por otro lado, we would have the notary and property registry expenses that are around the 1000 euros.
And finally, add the agency fees for tax procedures, licenses and receipts that would be around about 350-500 euros.
Which would give us total expenses of around 61.500 euros. rounding off, expenses have been 6,1% more about the amount of the purchase price.
In places other than Madrid, costs can be around 10%, which in our example would be 100.000 euro instead of 61.000.
Do you have any doubts?
I hope this article has clarified all the expenses that there are when buying a house, specifically in Spain and in particular to all those people who are going to buy a house for the first time.
We hope we have resolved all the doubts you had about the costs of buying and selling a home in Spain., if you have something to clarify, Do not hesitate to write us through this form.
Have a nice shopping!
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