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Cost of Purchase example

Note if purchased with the property a garage would be taxed at 8% . If purchased separately the charge would be 18%.

In some contracts the buyer is required to pay the “plusvalia” which is the capital gain on the property.

Case 1 – New building of 150,000€

New building in Euros Purchase Price Mortgage
150,000.00 Costs
60%: 90k
Taxes:
on property:
VAT (IVA) 8% 12,000.00
“Stamp Duty” (AJD) 1% 1,500.00
on mortgage:
Stamp duty on capital and interest 1% 1,278.00
Expenses:
on property:
Notary 468.00
Land Register 361.00
Purchasers’ Lawyer 1% + IVA 18% 1,770.00
on mortgage:
Notary 463.00
Land Register 301.00
Bank arrangement fee 1.350.00
Appraisal 200.00
Valuation
Information from the land register 12.00
Gestor for Bank 205.00
Surveyor for Bank 178.00
Building insurance
TOTAL Taxes and expenses 16,099.00 2,637.00
Mortgage is 60% Fixed rate over 20yrs.
monthly repayment 589,00
APR Euribor+1.5%

Case 2 – New building of 250,000€

New building in Euros Purchase Price Mortgage
250,000.00 Costs
60% :150k
Taxes:
on property:
VAT (IVA) 8% 20,000.00
“Stamp Duty” (AJD) 1% 2,500.00
on mortgage:
Stamp duty on capital & interest 1% 2,280.00
Expenses:
on property:
Notary 511.00
Land Register 421.00
Purchasers’ Lawyer 1% + IVA 18% 2,950.00
on mortgage:
Notary 469.00
Land Register 361.00
Bank arrangement fee 2,250.00
Valuation:
Appraisal 260.00
Information from the land register 12.00
Gestor for Bank 205.00
Surveyor for Bank 400.00
Building insurance
TOTAL Taxes and expenses 26,382.00 6,237.00
Mortgage is 60% Fixed rate over 20yrs.
monthly repayment 981.66
APR Euribor+1.5%

Case 3 -Resale Building of 150,000€

Resale building in Euros Purchase Price Mortgage
150,000.00 Costs
60%: 90k
Taxes:
on property:
Transfer Tax (ITP) 7% 10,500.00
on mortgage:
Stamp duty on capital & interest 1%
Expenses:
on property:
Notary 468.00
Land Register 361.00
Purchasers’ Lawyer 1% + IVA 18% 1,770.00
on mortgage:
Notary 463.00
Land Register 301.00
Bank arrangement fee 1.350.00
Appraisal 200.00
Valuation
Information from the land register 12.00
Gestor for Bank 205.00
Surveyor for Bank 178.00
Building insurance
TOTAL Taxes and expenses 13,099.00 1,359.00
Mortgage is 60% Fixed rate over 20yrs.
monthly repayment 589,00
APR Euribor+1.5%

Case 4 – resale building of 250,000€

Resale building in Euros Purchase Price Mortgage
250,000.00 Costs
60% :150k
Taxes:
on property:
Transfer Tax (ITP) 7% 17,500.00
on mortgage:
Stamp duty on capital & interest1% 2,280.00
Expenses:
on property:
Notary 511.00
Land Register 421.00
Purchasers’ Lawyer 1% + IVA 16% 2,950.00
on mortgage:
Notary 469.00
Land Register 361.00
Bank arrangement fee 2,250.00
Valuation:
Appraisal 260.00
Information from the land register 12.00
Gestor for Bank 205.00
Surveyor for Bank 400.00
Building insurance
TOTAL Taxes and expenses 21,382.00 6,237.00
Mortgage is 60% Fixed rate over 20yrs.
monthly repayment 981.66
APR Euribor+1.5%