Costs
What are the costs of getting a mortgage?
Due to recent changes in legislation there have been significant changes regarding the payments of costs.
The banks are now responsible for the payment of the stamp duty and all associated costs of the mortgage deed, this is a significant saving as the mortgage deed tax alone is approximately 2% of the mortgage amount.
The banks however do not need to cover the valuation fee due when the valuer goes on site to visit the property and they apply a bank arrangement fee deducted from the mortgage amount the day the mortgage is signed for at the notary.
What are the purchase costs?
The purchase deed costs are the costs of the buyer, these shall vary according to the property being a new build or resale and also depend on the region in Spain.
If a new build is being purchased IVA and stamp duty shall be applicable, for a resale property transfer tax shall be due.
What does it cost to sign a deed?
When a deed is signed there are four costs that need to be considered: the relevant tax, notary, land registry and deed administration by the bank´s administration office.
The banks will always manage and control the registration of the purchase and mortgage deeds at the land registry to ensure that they are correctly processed.