Fees when Buying a Property in Marbella, Spain
Buying a property in Marbella can be an exciting decision, but it also comes with fees and certain additional costs that not all buyers anticipate. What are these costs? Understanding the different types of associated expenses, from taxes to legal fees, is key to avoiding unpleasant surprises. However, despite these costs, the real estate market in Marbella remains quite attractive.
Taxes when buying a property in Marbella
Taxes are an important cost to consider when buying a property in Marbella. The applicable taxes vary depending on whether you buy a new or second-hand property. For new properties, you will need to pay VAT (Value Added Tax), which in Spain is 10% of the purchase price. On the other hand, if you opt for a resale property, you will be subject to the ITP (Impuesto sobre Transmisiones Patrimoniales), which is 7% in Andalusia.
Although these percentages may seem high, in the global context, Marbella is still an affordable option.
Legal expenses: Lawyers, Notaries and Registry
Hiring a lawyer is almost indispensable when buying a property in Marbella, especially if you are a foreigner. The cost of legal services is usually up to 1% of the purchase price, but this expense is necessary to ensure that the entire process goes smoothly. In addition, you will have to cover notary fees, which range from 0.5% to 1%, and registration costs AJD (Actos Jurídicos Documentados), which represent 1.2% of the property price.
Additional fees when buying a property in Marbella
Apart from taxes and legal fees, there are other costs that buyers need to consider. These include costs associated with the mortgage (if you decide to finance your purchase).
Property appraisal: This is an essential step if you plan to finance the purchase with a mortgage, and the cost of the appraisal is usually around 300 to 600 euros, depending on the size and value of the property.
Mortgage costs: If you decide to apply for a mortgage, you should be prepared to cover the opening costs and possible commissions, which can vary between 0.5% and 1% of the value of the loan. In addition, many international buyers choose to take out currency exchange insurance to avoid unexpected fluctuations in the exchange rate if the purchase is made in a currency other than the euro.
Home insurance: Although not mandatory in all circumstances, many financial institutions will require you to take out home insurance if you finance the purchase with a mortgage. The cost of this insurance can vary considerably depending on the size and location of the property.
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