Are you going to buy property in Asturias? Then it is best to take into account the purchase costs when making an offer. This article provides an overview of the different costs.
Transfer tax or VAT
If you have a existing housing buy, you will pay the regional transfer tax (Impuesto sobre Transmisiones Patrimoniales Onerosas). In Asturias, this is a progressive tax with brackets between 8 - 10%. Up to 300,000 euros, you pay 8%. On the next bracket up to 500,000 euros, the rate is 9%. Finally, you pay 10% on the piece above 500,000 euros. The tranches are applied to the entire purchase price and not per buyer as in other Spanish regions.
There are reduced rates for specific transactions, such as for listed buildings or properties located in low population density areas.
Read more about the process of buying a property in Spain.
If you are buying a new build, the rate is 10% VAT. In addition, there is a stamp duty (Impuesto Actos Jurídicos Documentados) of 1.2% on top of the purchase price. This rate can be reduced to 0.3% for newly built houses bought for residential rent.
Read more about buying new construction in Spain.
Notary and registration fees
A notary in Spain only does a limited number of searches and has no responsibility over the security of the transaction. A purchase deed can therefore be scheduled a few days in advance in Spain. The notary fees are +/- 1400 - 1800 euros. In addition, the deed of sale needs to be registered at a local registration office. Count around 800 - 1200 euros for this.
A notary also does not give you advice or help you draft the private sale contract / compromise.
Learn more about the role of the notary in Spain here.
Apply for NIE number
An NIE number is tax identification number for non-residents in Spain. You will need a NIE number for quasi all transactions over 3,000 euros, as well as for drawing up contracts for utilities, a telephone subscription and importing a car. Applying for a NIE number by itself costs around €10 per person. Note that an application can take some time.
Read more about how to apply for an NIE number.
Drawing up a notarised power of attorney
Often, prospective buyers work with a notarised power of attorney for practical reasons. With such a power of attorney, our office can carry out all actions for you, without you having to be in Spain. For example, think about applying for the NIE number, signing the purchase deed, arranging contracts for water and energy, applying for a rental licence, etc. You will then not have to worry about the red tape locally.
A power of attorney in Belgium or the Netherlands costs +/- €675 per power of attorney. In Spain, it is around 110 euros.
Find out more about a notarised power of attorney.
Bank charges
A Spanish bank account is no longer required in many situations, but payment of the balance of the purchase price is made by bank cheque. After all, the Spanish notary usually does not receive payments. Therefore, the safest way is to pay with a Spanish bank cheque while taking delivery of the keys. A Spanish bank cheque can be made out through our third-party account, so you do not need to open a Spanish bank account. Expect to pay around 200 to 300 euros for a bank cheque.
Read more about how payments are made when buying a property in Spain.
Legal assistance
To assure yourself that you are buying safely without debts, it is important to appoint a law firm to assist you during the buying process. Consider carrying out all the checks on the property (title, debts, building violations, rentability, etc.), drafting the various agreements and assisting at the notary.
Here you will find more information on how Confianz can assist you with a purchase in Asturias.
Do you have any questions about buying property in Asturias? Then feel free to contact on.
