Buying Property in Spain – What is the Real Cost of That Investment in Spain

15% More than the Property price Buying property in Spain is distinct to the UK or Ireland. There are a number of “hidden” costs which could add as much as 15% to the cost of the property you decided to purchase. As a buyer of property in Spain there are a number of costs and taxes over and above the property price you originally negotiated that you will have to pay. These are not necessarily hidden if you know what they are and in what circumstances they are incurred. Buying New Property in Spain If you are buying a new property from a developer, you will have to pay IVA, a form of VAT and Stamp Duty. There will usually be an annual community tax for the development. There is also the local property tax which depends on the local authority. Add to that Spanish income tax and the level of taxes you will have to pay can make your nose bleed and empty your pockets. In addition you have your lawyer fees, your notary fees, your bank fees, your insurance fees and the cost of making a will, as the Spanish intestate law is a nightmare. Buying Existing property in Spain If you are purchasing a resale property from a private individual, you will have to pay IVA and a transfer tax as opposed to IVA and stamp duty with a new development. Non-Financial Costs With a little bit of forward thinking and research before you start you can significantly reduce the risks of stressful problems later on. The whole conveyancing process is a specialist field in the Spanish legal profession, since the property laws are often highly complex. Buying a property in Spain should be a very straightforward affair however in so many cases it turns into a complicated nightmare because buyers aren’t really aware of what they are getting into. Add the specific incidents suffered by individuals to the corruption scandals in Manilva and Marbella on the Costa del Sol and the land grabbing by the Valencian government and the process of buying property in Spain and the real cost is not just monetary but stress and possibly sanity. Add to these issues the unscrupulous agents who have no real interest in the buyers and incompetent lawyers who just don’t do their jobs properly, again the hidden costs soar. What are the real cost of buying property in Spain? About 15-20% extra than anticipated and depending on your experience potentially a loss of sanity. Marbella property