When buying property, you can feel joy but also a great responsibility. By researching Alicante property for sale and buying an apartment or a house, you get a new quality of life, but at the same time, you spend a significant amount of money. The main thing here is to calculate everything correctly so that in the future some unforeseen costs do not become an unpleasant surprise. Keep in mind that to the value of the property, you must add the amount of mandatory payments in Spain in the form of taxes and fees. Such payments can be both at the state and local levels and may vary depending on the region in which housing is purchased.
If this is your first time buying a property abroad and you are afraid to face unforeseen circumstances, you may need to contact an independent lawyer – a gestor, who is a specialist in this field. In Spain, such services are provided by a large number of professionals who will take care of all the calculations and procedures related to the financial side of the purchase of real estate. This way, you will be confident and calm. The work of a lawyer is paid at an individual rate.
Characteristics of the main taxes and fees
An important component of the purchase of real estate is getting a mortgage. You can count on the fact that the Spanish bank is ready to finance 80% of the cost of the property, provided that this property will be your main residence. Then you must have your own funds in the amount of 20% of the price of the purchased property. You will pay off the mortgage at 5-6% per annum during the period set by the bank. You will also need to pay mortgage fees: for the appraisal of the property, for the registration of the mortgage and the registration fee.
The appraisal of a property for issuing a mortgage can be carried out by a bank or other expert, the cost of the appraisal is from €250 to €600, its validity period is 6 months from the date of issuance. Also, certain banks may charge a fee for opening an account, and this fee can be up to 2% of the amount of the mortgage loan issued. You may also be required to provide life or home insurance.
The main taxes and fees when buying property in Alicante include the following:
- if you buy a new home, then the main tax will be VAT, the rate of which is currently 10% of the property price; there is also the so-called second VAT tax on the purchase of new housing – the tax on documented legal acts (AJD), whose rate in Alicante is 2% of the value of the property;
- for real estate purchased on the secondary market, there is a property transfer tax (ITP), the rate of which is equal to 10% of the price of the purchased housing;
- when buying property for sale, you must use the services of a notary who will accompany the transfer of ownership of the property. The service fee here varies depending on the price of the transaction and the complexity of the procedure, the rates are regulated by the government and can range from €600 to €900. You will also have to pay for property registration at rates that depend on the price of the object of sale and range from €400 to €600;
- the fee for registering property in the land registry is paid after the transfer of property, the rates depend on the value of the transferred property and are in the range of €400-€600.
When choosing a property for sale, you also need to evaluate expenses for maintaining it, in particular, property tax. If you purchase property in a residential complex, then, in addition to paying for your own utilities, you will need to pay a fee for the maintenance of common benefits, such as, for example, the maintenance of a swimming pool, sports and playground, etc. The beautiful province of Alicante has more and more new residents every year due to the unique combination of magnificent nature and climate with modern urban achievements. Alicante property for sale is in high demand due to the variety of offers and decent quality of housing. When buying an apartment or a house, you should calculate all future expenses, also taking into account some amount for unforeseen circumstances, and then the buying process will not cause you unnecessary trouble and will lead to the expected result.