In previous articles on www.spaincostatropical.com I have mentioned the costs the buyer of any Spanish property should be aware of prior to making the offer and it being accepted. So here now is a break down of the costs to expect; some are obligatory charges such as transmission costs or purchase tax; and others are tax related fees. They are as follows and hence account for 8-10% on top of the sale price:

Notary fees for the preparation and notarising the escritura title deed –
The Notary, Notario – is popularly referred to as a “super lawyer” in the sense that they are an officer acting on behalf of the government to ensure that any document witnessed and approved by them complies with the very latest legal rights and codes. It is a legal office that has its roots in the times of ancient Rome; and as such has a long and established history as an officer of the law and legal system. This office has the power to authorize testaments, wills, and any other contract involving the exchange or movement of an estate or property. Among the duties involved in the sale and purchase they will ensure that the vendor is who they say they area and has the authority to act for the sale without recall to relatives or heirs; that the property is free of charges or debts on the day of the exchange (this is ensured by direct contact with the land registry office at the time of completion); where applicable that the full terms and conditions of a mortgage are content within the deed; and that all parties fully understand the contract that they are signing. The cost of this will depend on the extent of the document, the type and size of the property and the mortgage conditions. Generally speaking the average apartment costs would be say 400 Euros; and if a mortgage deed is to be included then the costs be twice this amount. Iva (vat) will be added at 16%.

7% IVA purchase tax (equivalent to VAT or transmission taxes) in Andalucia
If you are purchasing a property in Spain then these taxes are due within 30 days of property exchange. However for garages or storerooms purchased independently of habitable property, and also for commercial units then the taxes raise to 16%. Note that the there are variations in the purchase tax between different regions in Spain – ie Canaries 6%.

Impuesto Sobre Actos Jurídicos Documentados (AJD)
Where applicable, this is a 1% tax on 'documented legal acts' most probably a near equivalent to the stamp duty charged in some countries. It is charged for all new properties, and also for obra nueva transcriptions. It is not due on standard re-sale properties.

Property Land Register
Registro – is the department responsible for publicly registering the title deed to your property. Registering your deed with the Registrar of Deeds in Granada will cost approximately 300 Euros; and must be paid no more than 30 days from when you have taken title or fines will be charged.
 
Electricity - luz
Generally speaking you should allow 120 Euros for the standard contract of 3.500 Watts to transfer the title to your name. Thereafter you receive bi-monthly fees based on consumption and power rating (wattage) – approximately 25 to 80 Euros per month. The connection to all utilities is bonded from assurance of your Spanish bank account; and all monies are taken by direct debit. Note that in older properties, and prior to exchange of title, the utility company may demand an installation inspection and/or modifications and re-certification. This can cost up to 800 Euros or more depending on the size of property and the work involved.

Water - agua
Again the cost of the contract title change is approximately 120 Euros; with quarterly bills thereafter. Depending on consumption allow 20 to 40 Euros per month. Direct debit bonded the billing may also include, in some areas and villages, costs for basura rubbish collection and alcantarillas mains sewage and drainage.

Gas - gaz o butano
Outside of major cities, gas infrastructure is rare in southern Spain. As a consequence the most common form of provision is by bottled gas. Butano, gas bottles cost around 12 Euros for refill and delivery; while the contract per bottle costs 30 Euros the cost of the installation certificate is approximately 100 Euros and is again dependent on the extent of the installation and appliances connected.

Legal fees
A lawyer generally charges between 1-1.5% of the sales value; and thereafter for additional documents like power of attorney, cadastre applications, etc. It may be wise to consult with your lawyer in advance and agree a set fee for the work. A gestor (solicitor) will often charge much less for the same work.

Community fees
Where they apply, in urban developments or complexes with communal areas, there is no standard fee. Much depends on the areas and facilities provided (ie pool, communal gardens/terraces, lifts, cleaning, insurance, etc) and the range can be anything from 50 to 100 Euros per month. These charges will be due either monthly, quarterly or in some cases annually. It is important that prior to exchange of the property that your legal representative obtains a certificate from the community of owners that there are no debts, missed payments or additional costs due on the property.
 
Contribucion Urbana IBI
That is the local land tax for an urban property and or urban land, due annually and generally paid in 2 amounts though not necessarily half yearly to the local authority or municipality. In Almunecar an average 2 bed apartment will pay annually pay around 150 Euros or more.

Contribucion Rústica IBI
Is the local land tax for rural land rather than property, and is also due annually for payment to the local authority or municipality. In Almunecar this will depend on the size of the land, and its use and can range from a few cents to less the 30 Euros per anum.
 
This is a general list for the costs that the buyer should expect to pay for a typical exchange of property title in Spain. However to this may need to be included mortgage deed costs, valuations, independent structural surveys, and technical inspections. Note: some real estate agents in Spain can also charge the buyer for part or all costs involved in the property sale transaction. Please be certain in advance that the estate agent with whom you are dealing makes you aware of these hidden charges in advance. Here at spaincostatropical.com the prices advertised includes all sale commissions and charges – there are no hidden costs to you.