Costs related to purchasing a property in Spain

Perhaps you have thought about it: how wonderful would it be to buy a holiday home in Spain? Many people leave it at this and continue to dream, while others really want to make their dream come true. If you belong to the latter category, we have a useful article for you today.

You may already have some idea of ​​what is involved in buying a house in Spain, but we would still like to list the costs for you.

It is probably one of the biggest investments you will make in your life, so it is important to prepare well. We answer the question: how much does a holiday home in Spain actually cost?

If you have any questions after reading the article or if you are looking for a home within your budget, you can always contact us.

The first step: determining your budget

The first step in the search process for a Spanish property should be determining the budget. It is important to take into account the total costs, and not the costs that you see online.

We'll tell you later in this article what percentages to think about. Keep this in mind when searching, because it would be a shame if you come across your dream home but have not taken the additional costs into account.

When determining your budget, it is also essential to take into account the costs that you will have to pay directly. The process works differently than in other countries such as Belgium, Netherlands or UK.

Where in our own country we can finance a relatively large part with the help of the mortgage, in Spain you will have to take into account an investment of savings of around 30% of the purchase price and about 14% additional costs.

Once you have a clear idea of ​​your budget, it is time to start looking for homes that fit in well with it. We recommend that you list your preferences in advance, with a realistic idea of ​​what you want to spend.

Ultimately, it is entirely up to you how much you want to spend on your holiday home in Spain. At Rayos de Sol we offer options for every budget; for example, prices for a home start around €70,000 and run into the millions. We would be happy to work with you to find a suitable home within your price range.

A villa with sea view or an apartment on a small complex?

One of the main factors determining the price of a holiday home in Spain is its location. You can imagine that a villa with seaviews has a higher price than an apartment on a small complex.

In general, factors such as close proximity to the coast, surface area in square meters and new construction make the house more expensive. The area also has an influence; for example, houses in the north of Spain, such as in San Sebastian, are more expensive than in the south. Higher house prices should also be taken into account in the large cities such as Barcelona and Madrid.

The advantage of houses on the Costa Blanca and the Costa Cálida is that they are relatively low priced compared to other coastal areas such as the Costa del Sol.

If you compare the prices in Spain with other countries on the Mediterranean, you will see that they are lower. It is therefore not surprising that many (holiday) homes are purchased by UK residents every year.

What additional costs are involved?

In addition to the sales price that you can see when you look at the housing offer, there are additional costs on top. You should think of costs such as those for the mortgage, the lawyer and the notary. In general, this percentage is around 14% of the total sales price.

The final costs differ per home and per province. For example, the percentages of transfer tax are between 6.5% and 10%, depending on where you would like to buy a holiday home.

Also, if you have not been a resident in Spain before, you should take into account costs for arranging the practicalities such as opening a bank account and applying for a NIE (Spanish identification number). Your broker can also help you with this.

Costs after purchase

Unfortunately, after purchasing your holiday home, you will also have to take additional costs into account.

If you have purchased a property that is part of a so-called “comunidad”, or an urbanization, there are costs involved, such as the maintenance of common areas. It is essential to be aware of this in advance so that you are not faced with any surprises after your purchase.

In addition, you will have to take into account the basic facilities such as water, electricity, telephone and internet.

The importance of a good real estate agent

Just like when buying a house in your homeland, it is also advisable to use a good real estate agent in Spain. If all goes well, the broker knows the Spanish market like the back of his hand and therefore also thinks of all factors which you probably have not yet taken into account.

Your real estate agent can help you guide your purchase. If you hire an English speaking real estate agent in Spain, you don't have to worry about the language barrier when buying a house in Spain. In addition, the broker will be able to negotiate the best purchase price for you for the property.

The broker also has a network of reliable partners, such as lawyers, who can guide you through the process. So do not underestimate the role of a good broker.

Would you like to know in more detail what costs you can expect when purchasing a holiday home in Spain? We at Rayos de Sol are happy to help you. Please feel free to contact us to discuss the possibilities.

View our current housing offer here.