Finance information, mortages, property taxes - Costa del Sol, Marbella
PURCHASE COSTS:
In addition to the purchase price, you should allow an additional 10% which covers:
Transfer Tax or VAT (I.V.A), depending on whether it is a new or re-sale property. Notary and Legal Fees These will depend on the value of the property/transaction. Land Registry Fees & Stamp Duty which is 1% of the value of the property/transaction. Municipal Plusvalia Tax A tax on the increase in the rateable value of the property since the last transaction and paid to local authorities.
If you are seeking mortgage finance then you should allow approximately 12% above the purchase price to cover all costs.
Spanish mortgages offer very attractive interest rates over those in the UK The lender will require originals of your passport or driving licence, your last three payslips, your latest P60. If you are self-employed, you will need to produce your last three years audited accounts and tax returns.
ONGOING COSTS:
One you have purchased a property, there are annual costs which you need to take into account:
Community fees
Rubbish collection
Water rates
Electricity charges
Annual property tax
Property income and wealth tax
If you are not permanently in Spain it is usual to enlist the services of a fiscal representative (often your lawyer) to receive correspondence related to tax matters on your behalf. Utility bills and community fees can be set up on direct debit for convenience.
LONG-TERM RENTAL – ADDITIONAL COSTS
The owner of the property pays the community fees and annual taxes on the property with any long-term rental. The tenant is usually responsible for the electricity and water charges.