Expenses in the purchase of a property

Apr 20, 2022 |

Expenses in the purchase of a property

Plan your purchase to avoid surprises

When making a purchase, you must consider the costs involved. Below, we break down all the items that make up these "purchase costs":

Property Price:

Agreed transaction price that the selling party will receive and that will be recorded in the deed of sale.

Purchase taxes (VAT or ITP):

The general purchase tax is 10% (ITP) for the purchase of second-hand homes and 10% (VAT) for new construction. There are some discounts for businesses and those under 32 years of age, so please inquire as these may vary.

Notary fees:

Amount received by the notary for making the purchase agreement public.

Management Expenses:

Along with the costs of the deed, the notary usually instructs his or her agency to handle the formalities of submitting the documentation to the Registry.

Property Registry:

Fees charged for registering a sale in the Property Registry, so that it becomes effective for third parties.

Fees to buyer@s or SEC (Exclusive Service to the Buyer):

In some cases, this amount may apply, and the real estate agency receives it for management, advice, and support during the sales process. More information can be found in our blog post.

Mortgage Constitution:

Following a change in the Mortgage Law, the bank assumes the set-up costs, but the buyer is responsible for: i) the property appraisal; ii) home insurance, which is mandatory when a mortgage is held; and iii) the cost of maintaining a bank account with the mortgage lender if the lender requires you to maintain direct debit for the mortgage.

Property Renovation:

If the property you've purchased requires minor or major renovations, this will need to be taken into account, especially if its habitability depends on it.

Change of supplies (electricity, water, gas):

It's a good idea to complete this process immediately with your utility company to ensure your service is not interrupted. Some companies charge a fee for changing the name, which is included in the first bill for the new service.

Other Expenses:

This includes items to consider such as moving, insurance for the new home , and alarm installation .

At Albium, we have a tool to calculate all the costs associated with the purchase, to determine the total amount and guarantee a smooth, surprise-free process.

In case you are thinking of buying your property in Barcelona , at Albium – Properties in Barcelona we can help you with all the procedures. If you need more information, you'll find other interesting articles on our blog . You can write to us at info@albium.net or call us at +34 93 317 17 27.