{"id":10915,"date":"2020-03-05T14:59:27","date_gmt":"2020-03-05T13:59:27","guid":{"rendered":"http:\/\/www.shmadrid.com\/blog\/en\/?p=10915"},"modified":"2020-03-05T11:03:28","modified_gmt":"2020-03-05T10:03:28","slug":"purchasing-costs-property","status":"publish","type":"post","link":"https:\/\/www.shmadrid.com\/blog\/en\/purchasing-costs-property\/","title":{"rendered":"Purchasing Costs When Buying Property in Madrid"},"content":{"rendered":"<p style=\"text-align: justify;\">When you buy a property you are obviously aware that you need to keep up with your mortgage payments, but do you know there are more costs involved in the process of buying a property in Madrid?<\/p>\n<p style=\"text-align: justify;\">Many taxes and other costs have to be paid in order to start and finish the entire purchasing process, before you are finally the owner of your new property. Today\u2019s article by <a href=\"https:\/\/www.shmadrid.com\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>ShMadrid<\/strong><\/a> tells you more.<\/p>\n<p style=\"text-align: center;\"><em>Related article:\u00a0<a href=\"http:\/\/www.shmadrid.com\/blog\/en\/ibi-buyer-seller\/\" target=\"_blank\" rel=\"noopener noreferrer\">Who Pays for the IBI; Buyer or Seller?<\/a><\/em><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_17 counter-hierarchy\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.shmadrid.com\/blog\/en\/purchasing-costs-property\/#what-expenses-are-involved-when-buying-property-in-madrid\" title=\"What expenses are involved when buying property in Madrid?\">What expenses are involved when buying property in Madrid?<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.shmadrid.com\/blog\/en\/purchasing-costs-property\/#purchasing-costs\" title=\"Purchasing costs\">Purchasing costs<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.shmadrid.com\/blog\/en\/purchasing-costs-property\/#mortgage-costs\" title=\"Mortgage costs\">Mortgage costs<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"what-expenses-are-involved-when-buying-property-in-madrid\"><\/span>What expenses are involved when buying property in Madrid?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\">Before we start listing the costs of <a href=\"https:\/\/www.shmadrid.com\/blog\/en\/buy-home-centre-madrid\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>buying property in Madrid<\/strong><\/a>, you should know that these expenses can be divided into two: the costs of <strong>buying a property<\/strong> and the costs of <strong>being granted a mortgage<\/strong>.<\/p>\n<div id=\"attachment_10916\" style=\"width: 650px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/www.shmadrid.com\/blog\/en\/wp-content\/uploads\/2020\/03\/compraventa_opt.jpg\"><img aria-describedby=\"caption-attachment-10916\" loading=\"lazy\" class=\"size-full wp-image-10916\" src=\"http:\/\/www.shmadrid.com\/blog\/en\/wp-content\/uploads\/2020\/03\/compraventa_opt.jpg\" alt=\"blue wall with painting\" width=\"640\" height=\"360\" srcset=\"https:\/\/www.shmadrid.com\/blog\/en\/wp-content\/uploads\/2020\/03\/compraventa_opt.jpg 640w, https:\/\/www.shmadrid.com\/blog\/en\/wp-content\/uploads\/2020\/03\/compraventa_opt-300x169.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><p id=\"caption-attachment-10916\" class=\"wp-caption-text\"><em>Photo via Pixabay<\/em><\/p><\/div>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"purchasing-costs\"><\/span>Purchasing costs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul style=\"text-align: justify;\">\n<li>When you <a href=\"https:\/\/www.shmadrid.com\/blog\/en\/decisions-buying-property\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>buy a property<\/strong><\/a> you have to pay for the notary, whether it concerns a new or second hand house. Notary fees are fixed by regulations, so every notary will charge you at the same price. The price for the public deed of sale can vary between 600 and 1000 euros, but the exact amount depends on the price of the property.<\/li>\n<li>Another fee added by the notary is for signing the registry of the property. The amount is, just as with the previously mentioned fee, regulated by the State and will depend on the price of the property. Mostly the fee will be between 400 and 650 euros.<\/li>\n<li>There are also taxes involved when you purchase a home. If you buy a new property, then the most important tax is VAT, which in the case of Madrid is 10%. In addition to this tax, you will also pay for <em>Impuestos de Actos Juridicos Documentados<\/em> (IAJD or Stamp Duty), which is 0.7% in Madrid. As for second-hand homes, Transfer Taxes or <a href=\"http:\/\/www.shmadrid.com\/blog\/en\/itp-tax\/\"><strong>ITP<\/strong><\/a> are most important. The amount depends on the percentage applied by each Autonomous Community on the price of the property. In Madrid it is 6%, except for large families, because they will pay only 4% Transfer Tax.<\/li>\n<li>If you decide to use the services of a <em>gestoria<\/em> (an administrative agency) to take care of the paperwork and taxes, which is optional, there is an extra cost of around 300 euros.<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><em>Related article:\u00a0<a href=\"http:\/\/www.shmadrid.com\/blog\/en\/advantages-renovated-apartment-madrid\/\">Advantages of Buying a Renovated Apartment in Madrid<\/a><\/em><\/p>\n<div id=\"attachment_10917\" style=\"width: 650px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/www.shmadrid.com\/blog\/en\/wp-content\/uploads\/2020\/03\/compraventa-I_opt.jpg\"><img aria-describedby=\"caption-attachment-10917\" loading=\"lazy\" class=\"size-full wp-image-10917\" src=\"http:\/\/www.shmadrid.com\/blog\/en\/wp-content\/uploads\/2020\/03\/compraventa-I_opt.jpg\" alt=\"bedrooms with three lights on\" width=\"640\" height=\"360\" srcset=\"https:\/\/www.shmadrid.com\/blog\/en\/wp-content\/uploads\/2020\/03\/compraventa-I_opt.jpg 640w, https:\/\/www.shmadrid.com\/blog\/en\/wp-content\/uploads\/2020\/03\/compraventa-I_opt-300x169.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><p id=\"caption-attachment-10917\" class=\"wp-caption-text\"><em>Photo via Pixabay<\/em><\/p><\/div>\n<h3 style=\"text-align: justify;\"><span class=\"ez-toc-section\" id=\"mortgage-costs\"><\/span>Mortgage costs<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"text-align: justify;\">If the buyer needs a mortgage to be able to purchase the <a href=\"http:\/\/www.shmadrid.com\/blog\/en\/prevent-squatters-property\/\"><strong>property<\/strong><\/a>, additional expenses should be taken into account.<\/p>\n<ul style=\"text-align: justify;\">\n<li>The valuation of the property has to be taken care of, so the bank will know what percentage is needed to finance the property. It is normal for mortgage companies or banks to allow up to 80% of the <a href=\"http:\/\/www.shmadrid.com\/blog\/en\/house-valuations\/\"><strong>valuation<\/strong><\/a> or purchasing price, although in some cases they have agreed to finance the full 100%. The cost of signing a mortgage varies. It can be 250 to 600 euros.<\/li>\n<li>Depending on what you have agreed upon with the bank, the opening commission could be up to 2% of the total amount of the mortgage. Check this before signing anything, because some banks do not charge you for this.<\/li>\n<li>Previously you had to pay for Stamp Duty on the mortgage contract, but as of November 2018, a decree law determined that banks must now pay for this tax.<\/li>\n<li>Notary fees for registering the <a href=\"http:\/\/www.shmadrid.com\/blog\/en\/requirements-mortgages-2020\/\"><strong>mortgage<\/strong><\/a> contract originally had to be paid, but since June 2019, this expense is paid by the loan company.<\/li>\n<li>The Property Registry that is signed by the notary used to be an extra expense, but this amount is the responsibility of the bank since June 2019.<\/li>\n<li>The expenses of a <em>gestoria<\/em> (chosen by the bank to carry out administrative procedures) had to be paid for previously, but as of June 2019, this amount will also be paid by the bank.<\/li>\n<\/ul>\n<p style=\"text-align: center;\"><strong>Did you recently buy a home in Madrid? Are there other important details to be aware of?<\/strong><\/p>\n<div style=\"display: none;\"\n    class=\"kk-star-ratings kksr-valign-bottom kksr-align-center kksr-disabled\"\n    data-id=\"10915\"\n    data-slug=\"\">\n    <div class=\"kksr-stars\">\n    <div class=\"kksr-stars-inactive\">\n            <div class=\"kksr-star\" data-star=\"1\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"2\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"3\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"4\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"5\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n    <\/div>\n    <div class=\"kksr-stars-active\" style=\"width: 0px;\">\n            <div class=\"kksr-star\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\">\n            <div class=\"kksr-icon\" style=\"width: 20px; height: 20px;\"><\/div>\n        <\/div>\n    <\/div>\n<\/div>\n    <div class=\"kksr-legend\">\n            <span class=\"kksr-muted\"><\/span>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>When you buy a property you are obviously aware that you need to keep up with your mortgage payments, but do you know there are more costs involved in the process of buying a property in Madrid? Many taxes and other costs have to be paid in order to start and finish the entire purchasing [&hellip;]<\/p>\n","protected":false},"author":318,"featured_media":10918,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1565],"tags":[2360,2359,2361],"_links":{"self":[{"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/posts\/10915"}],"collection":[{"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/users\/318"}],"replies":[{"embeddable":true,"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/comments?post=10915"}],"version-history":[{"count":6,"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/posts\/10915\/revisions"}],"predecessor-version":[{"id":10934,"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/posts\/10915\/revisions\/10934"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/media\/10918"}],"wp:attachment":[{"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/media?parent=10915"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/categories?post=10915"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.shmadrid.com\/blog\/en\/wp-json\/wp\/v2\/tags?post=10915"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}