Make Your Money Go Further
Buying a property abroad is likely to be the biggest investment most people will make aside from their own home. Getting the financial aspects right from the word go is essential and will even save you money.
Taking the stress and hassle out of the financial side of your purchase is something we specialize in at Casas & Castles and we work with a number of professional partners who all have many years experience in making an overseas property purchase as easy and enjoyable as possible.
Need a Mortgage?
Whatever type of property you choose to buy, you can be sure that our financial partners can come up with a very competitive way for you to finance you purchase. Repayment and interest only mortgages are available and the repayment term can be anything up to 30 years, depending on your status. Non-resident customers can borrow between 60 – 80% of the Bank valuation of their property.
Once you’ve chosen your dream property in Spain, of course, you have to pay for it in Euros. It is a fact, often overlooked, that even the smallest difference in exchange rate can have a massive effect on the real price of your property.
Our currency advisors can keep you abreast of the fluctuations affecting your purchase and can even change your money into euros when the rate reaches a pre-agreed level.
A dedicated dealer will explain everything in plain English and help you achieve the very best exchange rate possible.
Mortgage and pension payments can be made on time and if you are buying an off-plan property, our currency specialists will arrange to make the stage payments on your behalf.
There are other expenses, on top of the advertised price of your property that you need to take into account when doing your sums.
There is a tax on 10% on all properties, and then you have to pay a fee for Notarias, registration of the property and a fee to the solicitor. All in all you have to calculate with additional costs of 13-14% on the purchase price of the property.
Table of Figures
- 10% IVA (Spanish VAT) or, in the case of a resale property ITP (Transmission Tax) at the same rate – Paid on the declared value of your property on the deeds
- Legal Fees – Property searches at the Land Registry and all legal cost associated with completion – €1,000 approximately
- Notary Fees* – Notary costs associated with preparing your title deeds and registering them with the Land Registry – €3,500 approximately
- Conncetion charges – Costa associated with contracting water and electricity services – €500 approximately
* It is worth noting that if you need a mortgage to finance your purchase, some costs may increase. For example, the Bank mortgage will need to be registered at the Land Registry in addition to registering the actual property. Your lender may also charge a set-up fee for granting you the loan