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The price of the property is set by the builder and is fixed on the day of purchase. A further 10-12% should be allowed for additional costs, payable on completion. These costs are principally made up as follow:
SPANISH VAT (IVA) - TRANSFER TAX:
The rate of VAT for new and transfer tax for re-sale properties is currently set at 7% of the purchase price.
LEGAL FEES:
Approximately 3% for registration of property and raising of title deeds, water and electricity contracts. (The 3% figure is only a guide – the actual charges are fixed and the percentage value will vary depending upon the purchase price of the property).
PAYMENT FORMULA:
3.000 euros on reservation
30% (less reservation fee) of purchase price due one month after reservation.
Final 70% on completion together with additional costs (as described above).
PAYMENT FORMULA WITH SPANISH MORTGAGE:
3.000 euros on reservation
30% (less reservation fee) of purchase price due one month after reservation.
70% of purchase price plus additional costs and mortgage set up costs making it possible to have a mortgage up to 80% of the house purchase price.
Spanish mortgages are annuity loans, and taken out for a period of 10,15 or 20 years providing the clients age will not exceed 75 years within the duration of the loan period. The loan can of course be repaid in full or part at any time. (Additional charges may apply). It is also possible to pay interest only for a max of 5 years.
LAWYER:
An English speaking firm of lawyers (Euro-Abogados Costa Blanca SL) will check your initial Contract from the Builder before forwarding it to you for your signature – this cost is met by SUN-SPAIN. Euro-Abogados Costa Blanca SL are available for all further legal matters regarding your purchase if you wish. Details of their costs for their services will be available during your Inspection Trip. |
