First and foremost, when you are buying property in Spain you will need to place a reservation deposit in order to remove it from the market. Reservation deposits will normally be €3,000 but on larger properties could be as much as 10% or €10,000. In some cases, on exchange of contracts, you will pay 10% of the purchase price minus the reservation deposit you paid when your purchase proposal was accepted.

It is imperative that you have funds available to cover the reservation deposit when you view properties as without it you may be at risk of losing your ideal home in Spain if another buyer is available with funds ready. Worthy of note is that foreign buyers should check with the bank or credit card company prior to traveling if they intend to pay a reservation deposit as most will deny the payment on the basis that it falls outside of the normal spending pattern.

When buying a Spanish property you should allow for around 10% of the sale price to cover purchase related fees. Purchase related fees generally include Transfer Tax on second hand properties or IVA on a new property of 7%, Notary Fees and the Notaries time, Land registry, and your legal fees. These fees are likely to be higher when you require a loan or mortgage as valuation and bank commission fees will be added. This is likely to push purchase costs up to around 12% of the purchase price.

When buying a Spanish property you normally need to register to pay for your water and rates at the local town hall, all of which should be done as soon as you take over your home. Most utility companies will want to take fees directly from your bank account.

When selling your Spanish property, you will not be subject to a great deal of costs. The principle matters you need to be aware of are as follows:

Plus Valia Tax is a municipal tax relating to the increase in value of the property since it was last transferred. It is common practice for sellers to pay the Plus Valia tax in Spain, and under Spanish law the seller is liable.

Agency fees also need to be considered when selling your Spanish property. Acsentra^® properties will either be represented by Acsentra^® and commission charged at a fixed fee; or where a vendor has paid to advertise their home within the Acsentra^® portfolio, but manages the viewings and sales process themselves, commission fees can either be taken from the proceeds of the sale at the legal completion, or added to the sale price before advertising. This again will be paid at completion.

If you would like advice on funding the purchase of a Spanish property, call +34 954 829 231 or click here to complete our online enquiry form.