Head of the firm
Buying property in Andalusia can result in a enriching experience, but also involves complexities due to the numerous formalities, tax implications and associated costs. The following are listed below key aspects to take into account to make a successful purchase.
1. Property Search and Selection: The first phase involves identifying the right property according to needs and budget. It is advisable to visit several properties and compare.
2. Offer and Negotiation: Once the property has been selected, an offer is submitted to the seller. Negotiation of the price and conditions of purchase may be required.
3. Deposit Agreement: This contract is a preliminary agreement where the buyer gives a deposit (usually 10% of the price) as a commitment. If either party defaults, it will lose this amount or have to pay back double the amount.
4. Funding: If you need a mortgage loan, now is the time to arrange it. This includes the approval by the bank and the valuation of the property.
5. Public Deed and Registration: Lthe sale is formalised before a notary, who draws up the public deed. It is then registered in the relevant land register.
1. Transfer Tax (ITP): For second-hand properties, this tax is payable and varies between 6% for special circumstances and 7% as the general applicable rate.
2. VAT and Stamp Duty (AJD): In the case of new properties, VAT (10% for dwellings) and AJD (between 0.5% and 1.5%) are paid.
3. Property Tax (IBI): This is a municipal tax payable annually and varies according to the cadastral value of the property.
4. Municipal Capital Gains: This tax is levied on the increase in value of urban land and is paid by the seller. However, it is important to be aware of their existence, as they can influence negotiations.
1. Notary: Notary fees depend on the price of the property and are usually regulated. Typically, the cost is between 600 and 1,500 euros.
2. Property Registry: The costs for registration in the Land Registry are also regulated and depend on the value of the property. They are usually between 400 and 1,000 euros.
3. Management: If an agency is hired to handle all the administrative procedures, the cost can be between 300 and 500 euros.
4. Valuation: If you apply for a mortgage, the bank will require an appraisal of the property, which can cost between 300 and 500 euros.
5. Estate Agency Fees: If an agency is used to find the property, the commission may vary, but it is usually a percentage of the sale price (between 3% and 5%).
In Andalusia, when buying a property, it is essential to understand the associated costs, as is the case with the property tax in Marbella or any other point of interest in real estate purchases. The Professional advice can make the difference between a successful transaction or a transaction with legal complications.
