CHARGES
Many first-time buyers are not aware of all the charges involved in purchasing a property in Spain. We pride ourselves on being open and honest and therefore are happy to disclose the fees you will need to pay, including those of Mortgage Direct, which we believe you will find extremely competitive. We believe there has to be transparency in this area, as many buyers feel brokers do not explain the charges properly to them. Here we explain these charges to you.
Firstly, you should be aware that the costs of taking out a mortgage in Spain are higher than in the UK. As a general rule of thumb, we suggest allowing around 10-12% of the purchase price to cover all fees and taxes. In some circumstances, you may be asked to pay any estate agent commissions that are not incurred by the vendor. This is something you need to discuss with your estate agent.
To be absolutely clear, we have included an example of a second-hand property worth 250,000 EUR and a mortgage of 200,000 EUR to give you an indication of the charges involved in a typical house purchase. Please note, for the purpose of this example, we have converted the Euro into British Pounds using a conversion rate of 0.80 (note 1) |
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EUROS |
POUNDS
Euro1 = GBP 0.80 |
CHARGES
RELATED TO PURCHASE PRICE
(250,000 EUR) |
|
|
Transfer
Tax @7% (note 2) |
15,750 |
12,600 |
Notary
Fees |
500 |
400 |
Land
Registry Fees |
250 |
200 |
Legal
Fees |
1,750 |
1,400 |
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|
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SUBTOTAL |
18,250 |
14,600 |
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CHARGES
RELATED TO THE MORTGAGE AMOUNT
(200,000 EUR) |
|
|
Stamp
Duty |
3,600 |
2,880 |
Bank
Opening Fee (note 3) |
2,000 |
1,600 |
Land
registry Fees |
250 |
200 |
Notary
Fees |
500 |
400 |
Property
Valuation |
400 |
320 |
Administration
Fee (note 4) |
495 |
396 |
Arrangement
Fee (note 5) |
1,000 |
800 |
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|
|
SUBTOTAL |
8,245 |
6,596 |
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|
TOTAL |
26,495
(note 6) |
21,196 |
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Notes
- The Euro rate changes on a continuous
basis and this figure is provided
as a guide only. Figures are rounded
to the nearest whole EUR or GBP.
- The price shown in the Escritura
(Title Deed) will often be lower than
the actual purchase price and, for
the purpose of this example, we have
assumed the price in the Escritura
(the Deed Price) is 225,000 EUR. Transfer
Tax of 7% of the Deed Price is paid
to the Hacienda (Tax Office).
- Bank Opening Fee:- In this example,
1.0% of the mortgage capital has been
charged. This percentage varies from
bank to bank. Mortgage Direct will
always try to keep this fee to a minimum.
- Administration Fee:- This is a
level fee of 495 EUR, payable at the
point of application to Mortgage Direct,
once you decide to proceed with your
mortgage application. If we fail to
find you a suitable mortgage, this
fee will be refunded to you (Money
Back Guarantee). If you or the vendor
withdraws from the sale, the fee will
not be refunded but you will not be
recharged on any future purchase
- The Arrangement Fee is 0.5% of
the “Mortgage Amount”. This is payable
to Mortgage Direct on completion of
the property purchase or refinancing
(minimum 500 EUR).
- To avoid confusion, we felt it necessary
to mention that, in Spain, the convention
is to use a full stop instead of a
comma to denote thousands, e.g. the
Spanish would use 1.000 instead of
1,000.
The above figures are to be used as
a guide only. |
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