When purchasing a Spanish property one has to take into account the additional costs involved. These costs are attributed various names but the name we have used is the on costs. When we calculate the additional costs for a client it is often difficult to arrive at an exact figure due the variables in some of the items. We have, below, outlined the additional costs and explained how we arrive at the figure quoted. It should be noted that the figures below appertain to clients who are not intending to finance the purchase by means of a Spanish mortgage. (See section below headed Spanish Mortgages)

Notary Fees

This is the figure paid to the Notary for the preparation of the title deeds for the property you are purchasing. The exact amount is not known until the day of signing and this is determined by the value of the property and the number of pages in the document. In our experience the average cost is in the region of 400-450 euros. However we did once encounter a figure close to 600 euros and therefore we use this amount for calculation purposes.

Land Registry

Once the title deeds have been signed the property needs to be registered and this, naturally, involves a fee. Again the average is approximately 200 euros although one did reach 300 euros and again we use the higher amount for calculation purposes. Using this method the client does not have any nasty shocks.

Legal Fees and Translation

We do make a charge for using our legal services which takes you through the process from start to finish and beyond. This includes accompanying you to the Notary and translating the title deeds and any other paperwork necessary to successfully complete the purchase of your property. For this we charge a total of 820 euros.

Electricity & Water Contracts

These do vary from builder to builder and again it is difficult to predict the exact amount. Erring on the side of caution we quote a figure of 800 euros to cover the costs involved. In the event you purchase a resale property the cost is a mere 50 euros and we ensure that all the utilities are transferred into your name.

N.I.E Numbers

Every person purchasing a Spanish property requires, by law, an N.I.E number which is basically an identification number. These can be obtained free of charge from the local Ayuntamiento (Town Hall) however the application and waiting process can be long and drawn out. Due to the fact that the number is required to pay all the relevant taxes and these have to be paid within 30 days of signing it is vital the number is issued. Should they not be paid within the required time then a penalty is imposed. To alleviate this problem we have a system in place whereby the number can be obtained on one day in Alicante. For this service the cost is 75 euros per person. It is our opinion this is money well spent and the vast majority of our clients fully agree.

Non-residency Certificates

The Bank of Spain imposes an annual charge on non-residents who hold a Spanish bank account. Again the figure can vary but we allow 20 euros per person for calculation purposes. Having said that our bank, Bancaja, agree to waive the charge for Sunline clients for one year.

I.V.A & I.T.P

When purchasing a Spanish property you are required to pay a tax based on the amount which appears on the title deeds at the time of signing. In the case of a new property it is called I.V.A (VAT) and for a resale property it is called I.T.P (Transfer Tax). In both cases it is 7% of the amount shown on the deeds. This is by far the largest of the On Costs and can be calculated at an early stage of the proceedings.

A.J.D Tax

This is basically the equivalent of stamp duty and it applies to new properties only. In the Province of Alicante it is calculated at 0.1% of the deeds value if the property is to be a permanent residence. If the property is not a permanent residence then the figure rises to 1% of the deeds value. In the province of Murcia the figure is 1% in both cases. Again this can be calculated for the client in advance.