Plan your budget: expenses and taxes to take into account when buy a house in Spain in 2024

Can you imagine yourself enjoying the warm Spanish beaches and living in your own Mediterranean paradise? Buy a house in Spain is a dream for many, but before taking the big step, it is essential to know all the associated expenses to properly plan your budget. In this article, we break down all the taxes and fees for buying a property in Spain in 2024.

Taxes when buy a house in Spain: new or second-hand

· Value Added Tax (VAT): If you buy a new home, you will have to pay a VAT of 10% on the purchase price.

• Stamp Duty: This tax only applies to new-build homes and ranges from 0.5% to 1.5% of the value of the property.

· Property Transfer Tax (ITP): This tax applies to the purchase of second-hand homes and varies between 6% and 10% of the value of the property, depending on the Autonomous Community where you buy your new home.

Additional costs: notary, land registry, mortgage and insurance

· Notary: Notary fees are mandatory and usually represent between 0.2% and 0.5% of the price of the home.

• Land Registry: Registering the property in your name has an additional cost that varies between 0.1% and 0.25% of the value of the home.
• Mortgage: If you need to finance the purchase with a mortgage, consider the loan origination fees, which are typically between 1% and 2% of the loan value.

· Home Insurance: Although it is not mandatory, it is highly recommended to take out home insurance to protect your investment. The costs vary depending on the coverage, but can be around 300 euros per year.

Total expenses to buy a house in Spain: between 10% and 12% of the value of the property

To get a rough idea, consider that the additional expenses to buy a house in Spain can range between 10% and 12% of the value of the property. This percentage can vary depending on whether the property is new or second-hand and the Autonomous Community.

If you want peace of mind to buy a house in Spain, you can count on the advice of experts in the real estate sector

Buy a house in Spain may seem like a straightforward process, but it's crucial to be well-informed and prepared for these costs to avoid surprises. At Orange Villas, we understand the importance of every detail in the home buying process. Our team of experts is here to advise and accompany you every step of the way, ensuring that your experience is as smooth and satisfying as possible. Contact us today and find out how we can help you buy a house in Spain hassle-free:

· Email to info@orangevillas.com

• Call our phone now: (+34) 966 491 163

· Physical office address: Ctra. Moraira – Calpe, 19 Bajo – 03724 Moraira (Alicante).