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.
