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Advice on buying a house

Posted: Fri Apr 7, 2023 5:12pm
5 replies191 views6 members subscribed
AlanSubo1

Posts: 10

Location: Playa Blanca

Joined: 2 Apr 2023

Can anyone please advise

If I was to buy a house at €300,000 how much extra would this cost roughly with tax, lawyer fees, exchange rates etc etc and anything else I may have missed


a rough idea would be appreciated 


thanks

Alan

Lanzadrums

Posted: Sat Apr 8, 2023 6:29am

Posts: 37

13 helpful points

Location: Mala

Joined: 21 Apr 2022

Posted: Sat Apr 8, 2023 6:29am

Add around 10% thats a fairly normal estimate.

tstevens01

Posted: Sun Apr 9, 2023 4:27pm

Posts: 2

2 helpful points

Location: Playa Blanca

Joined: 29 Oct 2022

Posted: Sun Apr 9, 2023 4:27pm

The taxes and fees would be about €25k+ depending on what you buy and where. Don’t forget there are also costs involved to get your £s into €s. I use Wise.com for small amounts and Key Currency.co.uk who were brilliant. 

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Matty

Posted: Mon Apr 10, 2023 12:25am

Posts: 11

5 helpful points

Location: Playa Blanca

Joined: 7 Jun 2020

Posted: Mon Apr 10, 2023 12:25am

AlanSubo1 wrote on Fri Apr 7, 2023 5:12pm:

Can anyone please advise

If I was to buy a house at €300,000 how much extra would this cost roughly with tax, lawyer fees, exchange rates etc etc and anything else I may have missed


a rough idea would be appreciated 


thanks

Alan

Hi

Exciting prospect. You should allow approximately 10% of the purchase price for fees, taxes and costs. 

Peevey

Posted: Wed Apr 12, 2023 10:37am

Posts: 1

Location: Macher

Joined: 28 Dec 2019

Posted: Wed Apr 12, 2023 10:37am

7-9% 

John

Posted: Fri Apr 14, 2023 12:44pm

Posts: 35

15 helpful points

Location: Punta Mujeres

Joined: 25 Feb 2019

Posted: Fri Apr 14, 2023 12:44pm

Hi, I found this piece which was obviously written by a solicitor looking for business but looks to be useful information for anyone planning to buy property.

Regards

John

On buying property in Spain, you should be mindful the title is clean. It is fairly common the previous owner is in arrears. In Spain, debts follow the property not the debtor. Meaning, when you take over the ownership, you also take on all the existing debts from the previous owner. This is why you should hire a conveyance law firm - like us - to carry out a thorough due diligence on the property ensuring everything is above board.

  1. Tenants. On buying property, the new owner takes on the position of landlord and must respect - by law - the duration of a pre-existing rental agreement. You should know some rental agreements in Spain lock you in for ten years… and you cannot update the rental.
  2. Utility invoices (water, electricity, etc). Outstanding utility invoices are a nuisance as utility companies may shut down the supplies. Reconnecting the electric supply, for example, can set you back 500 euros and you need to wait at least 4 weeks to top it off.
  3. Community of Owners. Properties within a community can be in arrears. The new owner takes on all the debts dating back five years, which can be substantial.
  4. Local taxes. The property can be in arrears with taxes levied by the local town hall. In the worst case, the property can be impounded and sold off in a public auction to recoup the debt. The new owner is held liable for all taxes going back four years.
  5. Title. It is important to acquire a clean title. Mortgages, embargoes, liens, etc can weigh down on a property’s value.
  6. Banned holiday rentals. A new trend is developing in community of owners, whereby they agree to ban holiday rentals outright. There is no point investing in a nice beach pad if you are not allowed to rent it out. It goes without saying that a property which cannot be leased legally has a substantially reduced market values as opposed to other similar properties in the area which can. 

I have only listed the basic six, but you should be aware there are far more points to look out for. Which is why we strongly urge you to contact an experienced law firm like ours on buying property in Spain.


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