Financial Considerations

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Financial Considerations

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New Property Purchase Costs

For off-plan purchases a fixed rate of 10% applies but is referred to as IVA (VAT). In addition A.J.D (Stamp Duties) are payable which is calculated at a rate of 1.5% in Andalucian Communities.

Notary Fees, Land Registry, Stamp Duty

Notary fees can cost up to approximately €1.750 although the cost increases according to the number of pages or complexity of the title deed (e.g. transcription of statutes, payment in stages, property partially finished, etc.). As an example, an apartment costing €300,000 will cost around €546 in notary fees, whilst a property costing €600,000 will cost around €678 in notary fees. Any higher than this amount, the fees go up marginally.

The property registry inscription fees also depend on the complexity of the transaction. For example, fees for an apartment costing €600.000 to be registered in the name of one person and purchased without a mortgage loan, will cost around €300. For an apartment with the same sales price to be registered in the name of 2 persons and purchased with a mortgage loan, will cost around €800.

Lawyer's fees are in the region of 1% of the selling price+ 21% VAT. This will vary dependent on the price of the property and the level of service provided by your appointed lawyer.

Opening fees on a mortgage are normally between 1.25% – 1.75% on the capital + fees for registering of the mortgage at the Land Registry.

Currency Exchange

Exchange rates fluctuate constantly, so whether you are buying your dream home in the sun or repatriating your funds back to your home country, a currency exchange company will give you a better rate of exchange then any high street bank and will also help you avoid significant bank transfer fees of approximately 1% when sending funds home, saving you money.

As part of our continued support to help our clients past and present, we have partnered with the world’s largest privately owned foreign exchange specialist – Cambridge Global Payments.

Mortgage

When purchasing an off plan property the developer will provide a payment schedule normally in line with the projected construction time 1 – 2 years.

A buyer will need to self fund the initial deposit and some of the stage payments until the property is completed. The remaining balance can usually be financed.

The mortgage advisor will aim to obtain the bank’s pre-approval for a loan 3-6 months prior to completion and will keep in touch with the buyer during the development of the project to ensure their profiles remain suitable for mortgage finance when the time comes.

We can recommend independent mortgage advisers offering a wide range of mortgage products for clients purchasing off-plan properties, providing impartial advice to non residents and ex pats and who will be happy to discuss your mortgage requirements.

For non residents they can achieve rates as low as 2% fixed for 20 years and Euribor + 1.35%, with 70% borrowing and products without life cover.

A professional mortgage advisor will research the whole market to ensure that they offer access to the most competitive and best Spanish mortgage products available to suit your needs. They will provide a clear and transparent guide to all costs involved in purchasing a property and obtaining a mortgage, so that a fully informed decision can be made prior to making a formal mortgage application.

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