Buying property in Spain : Fees
 

Hi,
We are buying an apartment for £47,000 and have been told that we will need an additional £8700 This is £4000 for legal fees and 10% of the property value which comes to £4700. It seems a lot of extra money to pay , does this sound about right? I would just hate to be ripped off on fees. The property is a resale and not new.

Thanks in advance,

Emelia

Re: Buying property in Spain : Fees
 

Depending where you are buying, we normally suggest an extra 10-15% for legal fees, taxes etc. (£4700 - £7050)

£4000 for legal fees does sound like an awful lot. A lawyer would usually be 1-1.5% (£470 - £700) although sometimes they have a minimum of 1000€ . The other costs are for land registry, notary etc.

NOTE - there should NOT be any agent fees for the buyer but best to ask. Have you asked for a breakdown of these legal fees

ALSO, make sure the purchase price is above the cadastral value

Re: Buying property in Spain : Fees
 

Hi,

Thanks for replying. Basically, the estate agents are providing what they call an after sales service. They said it will be all fees associated with the property, they are opening a bank account for us etc... I think i was just surprised because I thought the property being a resale would be around 7.5% purchase tax and legal fees and notary less than what was quoted.

Emelia

Re: Buying property in Spain : Fees
 

Snikpoh's figures seem about right to me.
My advice would be to use an independent lawyer rather than the Agent's services. When we purchased our lawyer did everything for us including opening a bank account, DD's etc. The Agent did nothing except sell us the property. This sounds like a bit of a profit centre for the agents

Re: Buying property in Spain : Fees
 

Hi emeliagrey

Sounds like the agents are being greedy at your expense. 1000e should cover legal expenses. So a total of about 5k.

Re: Buying property in Spain : Fees
 

The sales tax is 10% so that comes to €4700 alone!
The notary will cost in the region of €400-700
A decent lawer will want something in the region of €1300. I have never heard of a lawyer changing 1.5% on an €47000 property and actually doing any work lol... possibly on a €200K villa!
The lawer will be able to sort out your NIE and bank accounts for the above money. You will either go with the lawyer in person or give them power of attorney to do this for you.
Don´t forget the Spanish bank will charge you €500 for the bankers draft for the purchase - they will reduce this to around €50 if you take their home insurance usually. Do not be tempted to pay for the property by bank transfer as the legal system here is not set up for this. Having the cheque in your hand right up to the signing is your protection! And NEVER EVER use a lawyer recommended by the property agency!!!

Re: Buying property in Spain : Fees
 

Not sure how this works when the tax is €4700 alone!!!

Re: Buying property in Spain : Fees
 

Ok, so I lost the odd 700e plus forgot all about the Notary:o. Still the agent is being hopeful.