5 Facts before Buying a House in Spain
Before buying new housing in Spain, you should know that you will need to add 13 to 14% of the property’s value to its initial cost, of which 10% is tax and 3 to 4% is AJD (stamp duty), lawyer and notary services, registration fee, and water and electricity connection works. So, when determining your budget, consider these additional costs.
2. Maintenance Costs
Before buying new housing in Spain, you also need to know everything about the cost of its maintenance. There are 4 types of expenses for the maintenance of any property, such as:
- Ibi (council tax), which is also called the annual property tax.
- Comunidad or the payment for the maintenance of a housing complex if it has common pools, gardens, and the like.
- Garbage Collection fee.
- Utility Payments including payment for water, electricity, and all other .
3. Your Warranty
When buying new housing in Spain, you should know that you will receive a full package of guarantees from the construction company, namely:
- a 10-year construction warranty;
- a 3-year warranty for finishing materials and for all types of repair, finishing, and construction works;
- an up-to-two-years warranty for all electrical appliances in the house;
- a compulsory bank guarantee for all your money transfers.
- Please REMEMBER that you do NOT get any guarantees when purchasing a resale property, so we recommend you start searching for your real estate in Spain from the primary market.
Before buying new housing, it will also be useful for you to know that Spain is one of the few European countries that are very loyal to the issuance of mortgage loans, even to non-residents.
Usually, Spanish banks provide:
- an amount of up to 70% of the property value (excluding taxes).
- the interest rate, is from 3 to 4% per year,
- the maximum term is 30 years,
- the down payment is only 30-40% of the property value.
5. Your Reliable Realtor
We advise you to start a search for your new home in Spain by finding a reputable real estate company whose managers speak not only Spanish but also your native language. Moreover, a reliable realtor will not make you pay for real estate services if you buy a new build because such fees are always paid by the builder in Spain.
- PLUS, a professional real estate company will organize for you:
- remote selection of properties considering all your wishes;
- your arrival in Spain and accommodation;
- a three- or four-day real estate review tour;
- all the work related to the preparation of the necessary documents for the purchase and sale, and so on.
- And all this is completely free for you!