Cost of Purchase and operating costs of Property
The cost of buying real estate in Spain is considerably higher than Icelanders are used to.
When buying a new real estate, you can estimate the cost of 13-14%, but 12-13% when buying a resale property. There of, 10% value added tax is calculated from the stated purchase price and is paid to the Spanish government upon signing the deed at the Notary Public.
The purchase cost of property: More information
- Value added tax: Fixed 10% tax of the stated purchase price to the Spanish government, paid at the Notary Public.
- Notary costs, estimated: About 0,5% document and administration costs, depends on the purchase price.
- Registration fee: 1,5% of the purchase price.
- Borrowing fee, if a loan is taken: 0-1% of the loan amount.
- Valuation, if a loan is taken: 250-550€, depending on the size of the property.
- Energy contracts: 300-500€ (for new buildings only).
- NIE number: 150€ per person.
Real estate operating costs and taxes: Examples
- Community costs: 450-1.100€ per year – estimated cost to housing association, depends on whether; lift, common green areas and swimming pool belongs to the property.
- Electricity consumption: 60-100€ per month.
- Water consumption: 20-40€ per month.
- Internet and connection: About 49€ for installation and connection and from approx 30€ for monthly use.
- Home insurance: 250-500€ per year.
- Property taxes: 120-300€ per year.
- Property tax (IBI): 50€ and up per year, calculated based on the cadastral value of the land (plot) and the ownership share. We calculate these cost for you, based on the correct available data.
All details about the cost of your property will be provided by us at Zalt Properties and we will also gladly answer all other questions you might have.
Cost of running a Spanish property; leisure center or long-term stay, varies according to consumption patterns at any given time. During the hottest time, there is a further possibility of more energy-intensive use for air conditioning and more water consumption due to more frequent trips under the cooling pods, or due to air heating over colder times of year.
In addition to assisting with obtaining a Spanish National Identification Number (NIE), Zalt also assists with opening a Spanish bank account, where all direct payments and general charges related to the property are charged; such as electricity and water usage, internet, property taxes, housing association fees and insurance.
Automatic payments are a great comfort and safety.
