Mortgages in Spain - Fees
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Lenders in Spain normally charge approximately 1% of the borrowed amount as a completion fee, although this does vary from lender to lender. However, the maximum you should ever pay is 2%.
Valuation Fees will be charged by the lender and these will be dependent on the property value. An average €200,000 property will cost around €350 euros.
You have two taxes and two fees to pay on the transfer of property. The two fees are for the notarization of the deed and for its registry in the property registry. The two taxes are the transfer tax and a sort of capital gains tax on the increase in value of the land, usually called the plus val’a tax.
The transfer tax, called Impuesto de Transmisiones Patrimoniales in Spanish, is 6 per cent of the value declared in the contract. This ITP is charged on private sales. If you purchase from a property company, this tax will be IVA (value added tax), at 7 per cent because the sale is a business operation, not a private deal between two individuals.
In addition to this, you pay a documents fee, or stamp duty, of one half of one per cent, so buying a new property will draw tax of 7.5 per cent. All fees will generally equate to around 10% of the property value. All these things need to be taken into account when working out the budget for your purchase, as these Fees cannot be added to the loan.
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