What costs are involved in buying a house in Sotogrande?

As one of the most exclusive parts of the Costa del Sol, Sotogrande attracts considerable interest from those interested in buying a property in Spain. However, it is also precisely because of this that it is extremely important to be mindful of the exact fees and charges that apply when purchasing here. This is not least the case given that it is also easy to become confused as to which costs are the obligation of the buyer, and which belong to the seller.

We therefore thought that as a leading portal showcasing the latest property listings from some of the most trusted estate agents in Sotogrande, we would outline these costs that buyers need to be aware of.

Notary fees

The notary fees are the costs for drawing up the deeds in Spain, which are referred to as the ‘Escritura’. While Spanish law actually generally states that the signing parties should split these costs, with the sellers paying the original costs of the deeds ‘escritura’ and the buyer the copies, it has now become customary for these costs to be entirely paid by the buyer.

The selling price stated in the property deeds provides the basis for the notary fees. This means that while you may pay as little as €600 for a relatively cheap property, this could rise to around €1,000 if you buy a property for €1 million.

Property registry costs

These are typically the second greatest of the costs listed in this article, and normally come to around €400 to €650, again based on the selling price in the deeds.

Gestoría

The term gestoría refers to someone akin to a bookkeeper, with responsibility for handling the tax payments and paperwork necessary for the formalisation of the property deeds and mortgages. You can expect to pay about €250 to €500 for this service.

Property transfer tax

Purchasers of second-hand property in Spain must also pay property transfer tax, with the equivalent for newly built homes being VAT or IVA of 10%. In addition, those buying newly built properties in Spain directly from the developer are required to pay a tax on documented legal acts, known as IAJD.

The exact level of property transfer tax differs from one region of Spain to another; in Andalucía, where Sotogrande is, it is between 8% and 10%.

Property valuation costs

Will you need to take out a mortgage in order to purchase a Sotogrande property? In that case, you will also need to factor in the cost of the bank undertaking a valuation of the property, which typically amounts to around €800.

Remember that one of the best ways to reduce your costs as a prospective home buyer in Sotogrande is to clinch the best property purchase deal in the first place! By keeping up to date with the most recent listings from multiple reputable estate agents in Sotogrande here at Property Sotogrande, you can be well-placed to land the perfect property at the perfect price.