Buying property in Spain is always a good investment, especially now. The favourable currency exchange rate and the fact that prices have hit rock-bottom make this moment the perfect opportunity to make that idea prowling around your mind come true. Now it is a great time to benefit from the exchange rate. If you buy in UK Pounds, you will get best value for money.
However, it is important to bear in mind that buying a home where the sun always shines involves certain expenses which are listed below:
- VAT: only for newly-built Properties. 10% out of the value of the property
- ITP: Payment of property transfer tax, for 2nd hand Properties. This percentage varies from community to community ranging from 6% to 10%
- Notary fees (ca. 1% out of the value of the property)
- Registration in the Real Estate Register (ca. 1% out of the value of the property)
- Stamp Duty (it varies from community to community ranging from 0.5% to 1.5%)
Also, financing is now much more attractive and advantageous. If you are thinking about taking out a mortgage, Sonneil recommends hiring the services of a broker. He will do the hard work for you. He will consider all the possibilities offered by the Spanish banks and will look for the best conditions and the maximum possible funding. He will also help you with the paperwork, all that at a small price. Nowadays, non-resident citizens can get up to 80% of the property price. Signing a mortgage implies some extra expenses including valuation of the property (ca. €500, though variable), mortgage deeds (ca. 1%) and notary fees (ca. 1%).
All in all, you will need ca. 15% in addition to the price of the property in order to buy your home in Spain. You need to take into account that you can also:
- Benefit from the currency exchange rate: there are agencies which are responsible for ensuring the value for money by purchasing foreign currency to take advantage of the currency rate and not to miss the opportunity whenever you buy. Sonneil works with reputable professionals. Ask us 🙂
- Apply for a mortgage loan of up to 80%: this means that you will need ca. 35% of your budget cash.
See the best investment opportunities in Spain at Sonneil.com