Cheap property in Spain
Buying cheap property in Spain is different to buying in the UK.
The extra costs involved can suprise you if you don’t know what’s involved in the purchase. Here are the extra costs that you are likely to have to pay:
- IVA (= VAT) for the buyer – 6% on resale properties, 7% on new builds.
- 1 % to 2% for stamp duty
- Registration fee (300 euros )
- Notary fees and legal costs
As a rough guide add 10% to the cost of the property you are buying.
So you have costs of up to 10% of the property value before you have even bought and signed for. If you are planning to invest in property in Spain or find cheap property – then this will be a large sum you have to take into account.
In the early days of the property boom in Spain, Real Estate operators dictated the market prices and commissions and were able to gain from buyers desperate to buy a house in Spain – properties were being snapped up very quickly and builders simply couldn’t keep apace with the demand.
Nowadays things have changed and the market is saturated with many empty resale properties on the market.
So you should expect to see commissions of up to 10 or 15% on new builds with the same for Estate agents dealing in second hand properties.
You want to save money and buy a cheap property in Spain?
Here is what you need to do.
Add the costs and taxes for your property to the commission that the Estate agent asks and you have a large sum.
A valid question for a business person would be :
What if I can cut out the agent?
What you could do is go directly to the owner and deal directly to negotiate the price.
