Determination of your budget.

You may have an idea about your possible budget, however you have to keep in mind that apart from the price indicated for all the properties (and this is not only at VIDA del SOL) there will be extra costs around a maximum of 13% for matters like VAT, notary and legal services, stamp duty and the Land Registry. More detailed information you can find below.

Mostly one chooses to split the financing of a property purchase between private assets and mortgage. We strongly advise you to check the information about the possibilities of getting a mortgage under the Spanish law because it most likely varies from your country. The process of loan attribution always goes easier in your home country. Interest rates in Spain are normally a bit higher than the average. Nevertheless, Spanish banks are keen on having foreign customers because of the low risks.  

Taxes and costs

1. IVA (VAT): 10 % for residential real estate and 21% for plots, separate garages and storage facilities.

2. Stamp duty tax (for Andalusia): 1.5%

3. Notary costs: notary fees are calculated according to the wage-rate agreed by the government and depend on the nature of purchase / sale and the number of pages in the final purchase act. Notaries apply the same fees for the same concepts. The average fee for a purchase of a regular residential house range between € 500 and € 1.800 (excl. 21% VAT).

4. Inscription in the ‘Registro de la Propiedad’, (the Land Registry): the costs for the Land Registry is determined by the regional authorities and is usually between 50% and 80% of the notary fee.

5. Legal services / lawyer: 1% + 21% VAT of an agreed selling price.

In case of purchase of real estate using a new mortgage, there will be extra registration fees and notary costs involved because here we deal with a separate act that has to be officially registered. The stamp duty in this case will also be 1.5% of the total loan.