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Mortgage lenders
in Spain
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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