Cost of Purchase and Ownership of Property
The cost of buying real estate is considerably higher than Icelanders have gotten 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.
More Information On The Costs Of Purchasing And Operating a Property:
- Value added tax: Fixed 10% tax of the Spanish government upon purchase.
- Notary costs, estimated: 0.5% fixed document and administration costs, depends on the price of the property.
- Registration fee: 1.5% of the stated 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.
Examples of real estate operating costs and taxes:
- Community costs: 450-1.100€ – estimated cost to housing association, depends on whether lift, common green areas and swimming pool belongs to the property.
- Property taxes: 120-300€ per year.
- Home insurance: 250-500€ per year.
- Water consumption: 20-40€ per month.
- Electricity consumption: 60-100€ per month.
- Internet and connection: 49€ for installation and connection and from approx 30€ for monthly use.
- Property tax: 50€ and up, calculated based on the value of the plot and ownership share real estate. We calculate these costs 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.
It should be noted that the cost of running a Spanish property; leisure center or long-term stay, varies according to consumption patterns at any given time. Over 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 water and electricity usage, internet, property taxes, housing association fees and insurance.
Automatic payments are a great comfort and safety.
