Property buying - A Sample Breakdown of Costs
This is an approximate assessment of expenses incurred allowing for the full value of the property to be declared in the title deeds, and with maximum estimates for legal fees and taxes. The example below is for a typical £100,000 purchase.
All Sterling Prices In This Example Are Calculated At 1.45 Euros To The £ for simplification
| PURCHASE PRICE. | 145.000 Euros |
£100,000 |
| DEPOSIT ( 10% ) | 14,500Euros |
£10,000 |
| BALANCE ( Due Usually Within 30 Days ) | 130,500Euros |
£90,000 |
LEGAL AND TAXATION COSTS - To be added to the Purchase Price
| I.V.A. (Tax @ 7% of the Declared Value.) ( Maximum Estimate) | 10,150Euros |
£7000 |
| NOTARY/LAND REGISTRY ( Maximum Estimate ) | 797 Euros |
£550 |
| PLUSVALIA ( Another Spanish Tax) ( Maximum Estimate ) | 290 Euros |
£200 |
| CONVEYANCING | 1450 Euros |
£1000 |
| TOTAL | 12,687 Euros |
£8,750 |
ADDITIONAL EXPENSES - Which may need to be paid on completion
| COMMUNITY FEES ( 1st Year's Payment In Advance) Community fees vary a great deal between developments depending on the facilities, but this figure is an average for a good apartment complex |
1,160 Euros |
£800 |
| INSURANCE 1st Years payment in advance. Again the cost of insurance will vary with the value of the property. |
290Euros |
£200 |
| FISCAL REPRESENTATIVE ( 1st Year's Payment in Advance ) This person makes certain that all the necessary Tax Forms are completed correctly and on time |
290 Euros |
£200 |
| Total of Additional Expenses | 1740 Euros |
£1,200 |
GRAND TOTALS
| PURCHASE PRICE | 145,000 Euros |
£100,000 |
| LEGAL COSTS | 12,687Euros |
£8,750 |
| ADDITIONAL EXPENSES | 1,740 Euros |
£1,200 |
| TOTAL PAID | 159,427 Euros |
£109,950 |
As you can see this total has added 8.95% to the purchase price. This percentage obviously varies but is usually around the 8.5% mark. Another point to bear in mind is if you are taking a mortgage to finance the purchase, then there will be mortgage set up fees and valuation fees to be added, ( Usually around £1500)
Property Maintenance - A Sample Breakdown of Costs
Below is a list of what it costs to keep a property in this price range per annum
| COMMUNITY FEES | 1,160 Euros |
£800 |
| LOCAL RATES | 174 Euros |
£120 |
| INSURANCE | 290 Euros |
£200 |
| ELECTRICITY (Standing charge every 2 months is approx 20 Euros) Obviously plus what is used |
120 Euros |
£82 |
WATER (Standing charge every 3 months is approx 15 Euros) |
90 Euros |
£62 |
| FISCAL REPRESENTATIVE | 290 Euros |
£200 |
WEALTH TAX (0.2% of the DECLARED VALUE) |
290 Euros |
£200 |
| RENTA Renta is a new tax and is calculated at 2% of 25% of the value of the title deeds, this tax is presently under review by the Spanish Government and may be abolished |
362 Euros |
£250 |
| TOTAL OUTGOINGS PER ANNUM | 2776 Euro |
£1,914 |