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)
Water is usually on a meter unless it is in with the community charges
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