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Buying property,How much do I need to add,spanish taxes etc,?

Posted: Wed Mar 25, 2020 7:39pm
3 replies115 views3 members subscribed
stewart mac 1v

Posts: 12

3 helpful points

Location: Huércal-Overa

Joined: 27 Dec 2019

We like a property priced at 85.000 euros,But how much can I expect to pay on top of this with fees to solicitors,spanish taxes etc,etc,??

Jack

Posted: Wed Mar 25, 2020 11:32pm

Jack

Helpful member

Posts: 141

130 helpful points

Joined: 8 Oct 2016

Posted: Wed Mar 25, 2020 11:32pm

Approx 12%

Haikili1969

Posted: Thu Mar 26, 2020 7:50am

Haikili1969

Helpful member

Posts: 135

87 helpful points

Location: La Alfoquia

Joined: 2 Apr 2018

Posted: Thu Mar 26, 2020 7:50am

Hi,

I've answered this question many, many times...

Don't believe the "place in the sun" 10% costs... you need to comfortably allow up to 20% of the purchase price. (Legal, Transfer Tax, VAT etc)

1. Never, Ever use the Abogado from the Estate Agent or any other legal advice.

2. Always use a local recommended Abogado (Plenty of ref's on here, happy to give detail if req.)

3. You need to make sure your legal fees include, Legal Costs, Notary Costs, POA if Req, Transfer of Utilities, Searches, Registry, Wills, Translator if req etc...

4. Spanish Banks will charge for the Bankers Draft allow 0.5 - 1% of purchase price.

5. IBI (Council Tax) is much less than the UK (Could be a Quarter or less) and is based on the Catastral Value (You'll learn a lot about this!) There is also a Basura Charge, i.e. Bins, which is about €40 a quarter or less.

6. Utilities is much harder, how long is piece of string... But budget for the same as the UK and you'll be OK. Electricity can be really expensive in comparison to the UK, learn about tariffs and potencia.. it will help.

7. Pool costs again depend on size of Pool, heating, salt or chemical etc, how much it's used etc etc.. Allow between 100 - 200 Euros a month. It may be much less, so ask to see recent bills from the previous owner.

8. Research, Research, Research... Did I mention Research! 

9. Some will advocate renting before buying... that is your choice. But if you do enough research and speak to locals you should get an idea of life in the area you have chosen.

10. Remember after your 1st year you will be liable for Income Tax (IRNR) this will be based on your Catastral Value and any income from the property, i.e. Lettings/Rentals Currently 19% but may go to 24% after Brexit.

11. Don't forget in Spain unless you pay a large amount monthly into a Bank, there will be charges, maybe even charges for a Debit Card. 

12. Don't forget Property Insurance, Similar costs to the UK.

That's all I've got for now... Good Luck, Good Hunting and remember... Research, Research, Research, Oh! & trust nobody except your recommended Lawyer, Remember Buyer Beware & you won't go far wrong.

Saludos

Warren.


stewart mac 1v

Posted: Thu Mar 26, 2020 11:44am

stewart mac 1v

Original Poster

Posts: 12

3 helpful points

Location: Huércal-Overa

Joined: 27 Dec 2019

Posted: Thu Mar 26, 2020 11:44am

Haikili1969 wrote on Thu Mar 26, 2020 7:50am:

Hi,

I've answered this question many, many times...

Don't believe the "place in the sun" 10% costs... you need to comfortably allow up to 20% of the purchase price. (Legal, Transfer Tax, VAT etc)

1. Never, Ever use the Abogado from the Estate Agent or any other legal advice.

2. Always use a local recommended Abogado (Plenty of ref's on here, happy to give detail if req.)

3. You need to make sure your legal fees include, Legal Costs, Notary Costs, POA if Req, Transfer of Utilities, Searches, Registry, Wills, Translator if req etc...

4. Spanish Banks will charge for the Bankers Draft allow 0.5 - 1% of purchase price.

5. IBI (Council Tax) is much less than the UK (Could be a Quarter or less) and is based on the Catastral Value (You'll learn a lot about this!) There is also a Basura Charge, i.e. Bins, which is about €40 a quarter or less.

6. Utilities is much harder, how long is piece of string... But budget for the same as the UK and you'll be OK. Electricity can be really expensive in comparison to the UK, learn about tariffs and potencia.. it will help.

7. Pool costs again depend on size of Pool, heating, salt or chemical etc, how much it's used etc etc.. Allow between 100 - 200 Euros a month. It may be much less, so ask to see recent bills from the previous owner.

8. Research, Research, Research... Did I mention Research! 

9. Some will advocate renting before buying... that is your choice. But if you do enough research and speak to locals you should get an idea of life in the area you have chosen.

10. Remember after your 1st year you will be liable for Income Tax (IRNR) this will be based on your Catastral Value and any income from the property, i.e. Lettings/Rentals Currently 19% but may go to 24% after Brexit.

11. Don't forget in Spain unless you pay a large amount monthly into a Bank, there will be charges, maybe even charges for a Debit Card. 

12. Don't forget Property Insurance, Similar costs to the UK.

That's all I've got for now... Good Luck, Good Hunting and remember... Research, Research, Research, Oh! & trust nobody except your recommended Lawyer, Remember Buyer Beware & you won't go far wrong.

Saludos

Warren.


Many thanks for that really informative answer,So Its not so easy or cheap as what we thought, going to have a re-think and maybe go for cheaper property.

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