What expenses does the purchase of a home have?
The price is one of the fundamental factors in the purchase of a home. But, in addition to the amount agreed with the selling party, you have to take into account the expenses involved in buying a flat or a house.
With the help of a financial expert, we have prepared a list of expenses for the purchase of a home without a mortgage or with a mortgage. In addition, we indicate the expenses that the purchasing party no longer has to assume since the recent changes take effect.
Expenses of buying a home (no mortgage)
In all purchases of real estate there are a series of expenses and taxes that the buyer must face. They are the following:
I would notice. The buyer can choose the notary to make the deed of sale, the essential document to register the home in the Public Registry of Property. Notary fees are regulated by the State and the cost of the service depends solely on the price of the property. It is usually around 500 to 1,000 euros.
The Land Registry: The cost of registering the property in the Land Registry varies depending on the price of the property. It usually ranges between 100 and 500 euros.
The Property Transfer Tax (ITP): This tax is applied in the case of buying and selling second-hand properties. It is an autonomous tax and its amount varies depending on where the home is purchased. It is currently between 6% and 10%.
VAT: Only for new construction homes. The amount of VAT in this case is 10%, although there is a reduced tax of up to only 4% for officially protected homes.
Purchase expenses with mortgage
In addition to the previous expenses, applicable in all real estate sales, the expenses derived from the formalization of the mortgage must be taken into account.
Appraisal: This procedure is only necessary in the case of applying for a mortgage, although it can be done voluntarily to know if it is being bought above or below the market price. The price of the appraisal, which the buyer must take over, depends on the company that carries it out, but is usually around 200 to 600 euros.
Notary copies: Of a very low amount, about 20 euros.
The expenses that the buyer no longer pays
Recent changes in regulations have limited the expenses that the buyer requesting a mortgage must face, and which the bank must now assume.
Until November 10, 2018, clients paid the Tax of Documented Legal Acts, but since the entry into force of a new Government Law Decree, the financial entities assume it. This item depends on each autonomous community and was the highest. It could vary between 1,500 and 6,000 euros, depending on the loan and the community in which the house is located.
With the entry into force of the new Mortgage Law on June 16, 2019, there are many other concepts that the buyer stops paying: notary, agency and registration expenses. The only expenses that you must face to formalize a mortgage are the appraisal and the notary copies.
Other expenses: real estate agency, IBI and community
If the purchase has been made through a real estate agency, the buyer must face the payment of this service, which is usually between 5% and 3% of the value of the home. Some real estate companies divide this percentage between the buyer and the seller, and in some regions it is only the seller who faces this expense. It will depend on the cost policy of each agency, since this percentage is not regulated by law.
The Urban Property Tax (IBI) must be paid by the owner of the property on January 1 of the year of the sale. However, in 2016, the Supreme Court passed a ruling (art. 63.2 of the Local Treasury Law) in which it stipulates that the seller can pass on the proportional part of the tax to the buyer for the pending days until the end of the year (unless agree otherwise).
Regarding community expenses, it is customary for the selling party to take over until the day of the sale. From that moment they correspond to the buying party. Sometimes (if there are extraordinary spills, for example) it can be agreed differently, always before the formalization of the deed.