Dreaming of your own home on the Mediterranean coast? Buying a second home in Spain is a great opportunity to make your dream a reality. However, it’s important to understand that in addition to the property’s cost, you’ll have to pay a number of expenses and taxes. In this article, we’ll tell you how much it costs to buy a second home in Spain, taking into account all additional expenses.
Cost
The cost of property in Spain depends on many factors, such as: Region: property prices in Barcelona and Madrid will be significantly higher than in small coastal towns. Type of property: luxury villas and apartments cost more than flats and townhouses. Property size: the larger the property, the higher its cost. Property condition: new builds generally cost more than properties on the secondary market. On average, the price per square meter of residential property in Spain is approximately €1,922.
Expenses
In addition to the property’s cost itself, you’ll have to pay a number of expenses related to the purchase: Property transfer tax (ITP): this tax is paid by the buyer and amounts to 6-10% of the cadastral value. VAT (IVA): this tax is paid when buying a new home and amounts to 10% of the cost. Stamp duty (AJD): this tax amounts to 0.5-1.5% of the property’s cost. Notary fees: notary fees amount to 0.5-1% of the property’s cost. Registration fees: fees for registering a new home in the Property Registry amount to 0.5-1% of its cost. Mortgage expenses: if you’re buying property with a mortgage, you’ll have to pay mortgage arrangement fees, which can amount to 2-3% of the mortgage amount. The total expenses for buying a second home in Spain can amount to 10-15% of the property’s cost.
Taxes
In addition to the expenses related to the purchase, you’ll also have to annually pay a number of property taxes: Property tax (IBI): this tax amounts to 0.4-1.1% of its cadastral value. Waste tax (Basura): this tax depends on the area and amounts to 30-50 euros per year. Water tax (Agua): this tax depends on the amount of water consumed and amounts to 10-20 euros per month. The total expenses for maintaining a second home in Spain can amount to 1-2% of its cost per year.
How to optimize expenses
To optimize expenses for buying and maintaining a second home in Spain, you need to: Compare offers from different sellers and real estate agents. Choose property with a low cadastral value. Arrange a mortgage with a Spanish bank. Timely pay all taxes and fees. Buying a second home in Spain is a profitable investment that can be your key to a carefree life on the Mediterranean coast. However, it’s important to carefully calculate all the expenses associated with buying and maintaining the home to make an informed choice.
If you are interested in real estate in Spain, take a look at our offers of villas, apartments and houses. We have a variety of options, for example in Tenerife.
