The real costs for buying in Spain?
Hi all
I'm looking at buying a small property in Andalucia. We're down to a shortlist now and we're looking in the region of €50k. Talking to an estate agent, they've said that a nota simple is all we need in order to check that there aren't multiple owners and we're not going to get bitten by nasty hidden bills for back taxes, etc. Basically, that the nota simple means that the property will actually be ours when we've handed over our cash and that it will remain ours without having to pay more. The agent have also said that they will get our NIE and open a bank account for us with a PoA. Essentially, cutting out a Spanish lawyer. I've had a really comprehensive example quote from a Spanish lawyer as well which details costs for a property of €190,000. This is broken down as: Notary fees and land registry fees - 0.5% €250 on €50k Legal costs - 1% (min of €1815) inc IVA Land searches - €200 Transfer of utilities and setting up direct debits - €350 Signing PoA in the UK - €250 Transfer tax - 8% €4000 on €50k 2 x Spanish wills - €600 including notary fees Survey - around €400 depending on the level of survey This would give a pretty comprehensive package by the looks of it at a cost of €7865 on top of the purchase price to go from a standing start to owning the property. I'm not looking at skimping. I tend to err on the cautious side even if it costs me a bit extra. But does this all sound about right? Is there anything in there that anyone would say "You REALLY don't need to bother with 'x'" or anything that you would say "You REALLY need to add on 'y'"? Thanks in advance for your thoughts! Andy |
Re: The real costs for buying in Spain?
Cut to the chase: You definitely need a lawyer!!!.
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Re: The real costs for buying in Spain?
General rule of thumb is 12-14% on top of purchase price.
A more definite rule of common sense is always use an independent professional experienced solicitor. |
Re: The real costs for buying in Spain?
As Chipmonk rightly states you do need a lawyer and not one recommended by the agent.
Rosemary |
Re: The real costs for buying in Spain?
Agreed and as others said before, never trust an estate agent. You don't speak the language, you don't know the law. Some might get away with it/are just lucky and no doubt there are some good people (estate agents) out there, but so many people make the same mistakes.
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Re: The real costs for buying in Spain?
600 euros for 2 wills sounds expensive.
Mine was about 55 euros |
Re: The real costs for buying in Spain?
I bought my first property without a lawyer. I just talked with the seller, agreed a price, date etc. The difference was that my mother-in'law and wife both spoke Spanish and knew the laws. We then just arranged all the official stuff with the Notaria. However that was over 20 years ago and many Spanish simply didnt need lawyers. Since then things have changed and most Spanish now use lawyers.
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Re: The real costs for buying in Spain?
Hi Moses2013
Thanks for such a comprehensive reply. From your links, are you associated with that company? I've had a quote (as above) from one law firm so far. I would be more than happy to talk to you if this is something you can help with. If so, and you're happy, I'll drop you a PM with my email address. Regards Andy |
Re: The real costs for buying in Spain?
Originally Posted by aj2610
(Post 12913804)
Hi Moses2013
Thanks for such a comprehensive reply. From your links, are you associated with that company? I've had a quote (as above) from one law firm so far. I would be more than happy to talk to you if this is something you can help with. If so, and you're happy, I'll drop you a PM with my email address. Regards Andy |
Re: The real costs for buying in Spain?
quote - "Transfer of utilities and setting up direct debits - €350"
Please don't pay anyone that, it is so easy to do yourself save the money |
Re: The real costs for buying in Spain?
Originally Posted by snikpoh
(Post 12913867)
quote - "Transfer of utilities and setting up direct debits - €350"
Please don't pay anyone that, it is so easy to do yourself save the money Our solicitor set all these up including the IBI in their costs. When we purchased Jan 2019 I think our costs to the solicitors was only about 800 euros in total before IVA. And we gave them POA as I couldn't get here to sign the paperwork. But that was on a purchase of 78.000 euros before taxes. I would also add Never use the same company as the seller or even one the agent recommends. We didn't and the estate agent is a friend of ours. :) |
Re: The real costs for buying in Spain?
Originally Posted by snikpoh
(Post 12913867)
quote - "Transfer of utilities and setting up direct debits - €350"
Please don't pay anyone that, it is so easy to do yourself save the money |
Re: The real costs for buying in Spain?
Originally Posted by inbarcelona
(Post 12913762)
600 euros for 2 wills sounds expensive.
Mine was about 55 euros
Originally Posted by snikpoh
(Post 12913867)
quote - "Transfer of utilities and setting up direct debits - €350"
Please don't pay anyone that, it is so easy to do yourself save the money While I would agree that this is expensive and its easy to do yourselves, not speaking spanish, taking an interpreter / per hour and copies of all the relevant paperwork.. €350 will seem like a bargin compared to the time you´ll have to put into this. As well as this - if you really want the elctric bill in your own name, and the house / electrical installation is old... its going to cost another €5000 at least on top of the price to get an electrician in to bring the electrics upto modern code. The electric company will only change the name on the contract if the installation (house) has a "bollatin" of less than 5 years old. If it doesnt have one, it has to get one. To get one it has to be tested. It wont pass, and upgrades have to be made... This is what costs the money. |
Re: The real costs for buying in Spain?
My solicitor included the transfer into my name/bank account of all utilities when I bought last year as part of his overall service.
You cannot buy without an NIE as you are signing for an asset with a tax liability. Yes I agree the wills are expensive. The IVA (new) or transfer tax is now based on the actual purchase price of the property. (Alicante region) |
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