Once you have decided to buy a property in Spain, it is common that part of it will be financed via a mortgage. It is also important to properly inform yourself what the costs are that you can expect when purchasing the property. The buyer’s costs consist of two parts: the costs for the purchase and the costs for the mortgage.
As a rule, the total cost is around 10% of the purchase price of the property. For example: If you buy a property of 300,000 €, you can assume that the cost will be around 30,000 €.
In this article, we focus on the costs related to the mortgage loan. It is divided into five pieces:
– Notary
– Valuation
– Taxes
– Registration
– Gestor
• Notary: The costs for passing the mortgage deed may vary per notary, but are about 750 €.
• Valuation: This varies between 250 € and 500 €, depending on the value of the property. The valuation has a validity period of 6 months.
• Taxes: Stamp duty (AJD) is levied before passing the mortgage deed. This is a percentage of the mortgage amount and is between 0.50% and 1.50%, depending on the region in which the purchase is made.
• Ownership registration: The registration of the mortgage in the property register is approximately € 300. This is done by the gestor within one month after the deed has passed.
• Gestor: 300 € to 500 €. The deposit is switched on via the bank and takes over the administrative part of the transfer. It ensures that all documents are prepared on the day of transfer and ensures the registration of the mortgage in the Land Registry and the payment of taxes.
Please also note that the cost varies depending on the amount you borrow and the region in which you purchase.
There are also a number of indirect costs related to a mortgage loan. Think of the home insurance (mandatory by the financing bank) and/or a death risk insurance. This is not mandatory with every financier and it is important to inform yourself well in advance about the additional conditions of the financing bank.
And now for the good news! Since 2019, it has been laid down by law that all costs related to taking out a mortgage are borne by the financing bank. This means that you only have to bear the costs for the valuation and the costs for the purchase of the property. This new mortgage law saves you thousands of euros.
Feel free to contact us for more information about financing of your property in Spain.
Robin Christiani is a licensed mortgage advisor in Spain and founder of De Spaanse Hypotheker.
Tel: +34 675 072 836
Mail: info@spaansehypotheker.nl