Additional Costs of Buying Tenerife Property
When buying any real estate from our company, you are guaranteed to avoid any additional fees and overpayments. Our agency cooperates with major companies, developers, businesses, banks and receives fee included in every real estate asset.
We cooperate with our partners directly and have NO intermediaries and hidden fees. In other words, you will not find the same property on the Tenerife property market cheaper than one offered by our company. But there are additional costs of buying a property:
In addition to the specified value for a given property, the buyer pays for the lawyer’s services and makes tax payments. The total sum of additional costs is about 8% of the final value declared in the deed, and if you take on a mortgage loan, then it is about 10%.
Let us examine these additional costs on the example of buying apartments / flats / studio of a value of about 150 000 Euros:
- The tax IGIC (the prototype of VAT): 7% that are payable when buying from the developer, i.e. “the first market”.
- Tax Actos Juridicos (fees charged for notarial acts): 1% that are payable only when purchasing from a developer.
- Tax Transmisiones Patrimoniales (a transfer tax): 6.5% that are payable when purchasing from a private individual or a company, i.e. “the secondary market”.
- Notary fees for the deed issuing that sum 800 Euros on the average. The sum depends on the number of pages of the deed and the number of owners specified in it.
- Registering of the deed in the Registro de la Propiedad (the public register for properties in Spain) – 400 Euros on the average.
- Gestoria Juridica Services (a law firm recommended by a notary) – 700 Euros.
When taking on a mortgage loan, the following expenses are added to the sums mentioned above:
- Origination fee – 1% of the loan amount.
- Estimation of the property value – 200 – 600 Euros, depending on the property sizes.
- Notary fees for the second deed (which regulates the relationship between the buyer and the bank-borrower) – 600 Euros.
- All risk property insurance (required by the bank-borrower) – 150 – 400 Euros per year, depending on the property characteristics.