Allow for extra costs

PROPERTY experts in Spain estimate that when buying a property it is essential to add an extra rough amount of 8 per cent if buying outright, to 15 per cent if using a mortgage, to the purchasing price in order to fully account for the extra costs associated with closing the deal. There are a great deal of intangibles to consider which depend largely on the region and the nature of the property itself.

Whether the building is new or used will determine whether and what level of VAT you will have to pay and also whether stamp duty applies, the amount varying across provinces. New housing is classed in a complex fashion and will require VAT  and stamp duty (AJD), while used housing is not taxed with either, but will incur the transfer tax (ITP). This also varies according to region, from highs of 10 per cent of the value of the sale in Catalonia, to lows of four in the Basque Country. There are different schemes for special circumstances like large families or those with disabilities. 

Land registry and notaries will create extra costs and will be significantly higher for those with mortgages who will incur all kinds of agency fees and demands embedded in the mortgage contract.