Posted: Thu Apr 23, 2020 10:45am
As in the UK, the buyer doesn't pay any estate agent fees; although vendors generally pay more (3%) than in the UK (average 1%).
As a non-resident, you need a minimum of 30% deposit for a mortgage, but, as with all banks, they will assess your income & outgoings, so if you still have a mortgage in the UK, they may want more. If you're selling up in the UK or otherwise don't need a mortgage, then that will reduce your costs - see below.
As per PhilTox' response, in general, you need to allow for about 12-13% of the purchase price in addition for various fees. It's considerably more expensive than the UK (assuming that's where you currently live). These are:
1. Purchase Tax (the equivalent of Stamp Duty) - 8% of the purchase price. This varies via region and Murcia is lower than many other regions that apply 9% or 10% tax.
2. With a mortgage, you'll probably need to pay all or most of the following, which are generally pro rata to the purchase price or mortgage sum:
- Mortgage fee (commonly 1.5-2% of the mortgage amount);
- Valuation fee (approx. £300; £1,000 upwards if you want a full survey);
- Arrangement fee (approx. £175);
- Notary fee (the law changed in 2019 and the bank can't charge you for one aspect of the Notary, but they charge you for another aspect! approx. £1000);
- Bank admin fee (approx. £300);
- Banker's draft - You will pay the final balance via banker's draft (Spain doesn't appear to have caught up with other countries on electronic transfers! approx. £250);
3. Registration fee (approx. £300)
4. Lawyer fees - approx. £2000
5. Broker fees (if you use a mortgage broker) - approx. £1,000
6. You will need to attend the Notary office twice in person, so factor in travel costs for that, plus, if you're not fluent in Spanish, you may need to pay for a translator, as the Notary needs to know that you understand the mortgage, etc.
The Purchase Tax is, obviously, the main difference compared to UK Stamp Duty. However, council tax in Spain is much lower and I calculated that I would recover the purchase tax difference within 6 years through lower council tax.
The other element to think about is the exchange rate, which over the past year has varied from 1.06 to just over 1.20, which is a variation of 12% - so buying at a low point could cost that much more. You also need to check charges for moving money between banks as well as the exchange rates they offer, as these can all make a difference.
Hope this helps!