{"id":6922,"date":"2020-03-10T12:32:00","date_gmt":"2020-03-10T11:32:00","guid":{"rendered":"https:\/\/www.chakibpropertyworld.com\/?p=6922"},"modified":"2022-11-07T12:43:24","modified_gmt":"2022-11-07T11:43:24","slug":"expenses-and-taxes-for-the-purchase-of-a-home-in-2020-with-or-without-a-mortgage","status":"publish","type":"post","link":"https:\/\/www.chakibpropertyworld.com\/en\/expenses-and-taxes-for-the-purchase-of-a-home-in-2020-with-or-without-a-mortgage\/","title":{"rendered":"Expenses and taxes for the purchase of a home in 2020, with or without a mortgage"},"content":{"rendered":"

Mortgage is not the only big expense involved in buying a home. In fact, there are many expenses and taxes that must be met to formalize the operation and become the owner of the property.<\/p>\n

1. The costs of buying and selling<\/span><\/strong>
\n2. Mortgage expenses<\/span><\/strong><\/p>\n

Between the appraisal of the house, the notary, the registration and the corresponding taxes (VAT, ITP…), the experts recommend having savings of between 10% and 12%, depending on the CCAA, the price of the house. All of them are mandatory expenses that revolve around the sale of a home, although the ‘invoice’ to be paid will depend on whether it is a new or used house and the amount of it. We summarize what each one consists of and what its approximate price is in 2020:<\/p>\n

1. The costs of buying and selling<\/span><\/strong><\/p>\n

The notary<\/span><\/strong><\/p>\n

An expense to consider when buying a house, both new and used, is the notary. Notaries’ fees, known as tariffs, are regulated by the State and all charge the same for identical services. In the case of the granting of the public deed of sale, the prices are between 600 and 875 euros, depending on the price of the property. For example, for a flat of 100,000 euros approximately 850 euros would be paid, while for one of 250,000 euros some 1,000 euros should be paid.<\/p>\n

The Land Registry<\/span><\/strong><\/p>\n

It also costs money to register the deeds signed by the notary. Again, the fees are set by regulations and depend directly on the price of the property, although they usually stand between 400 and 650 euros.<\/p>\n

Taxes linked to the sale<\/span><\/strong><\/p>\n

The buyer of a home must also have an extra mattress to pay taxes, although the amount will depend on the price of the house and whether it is new or second-hand.
\nAs for the expenses and tax on the purchase of a new home<\/strong>, the most important tax is VAT<\/strong>, which in 2020 amounts to 10%. That is to say, it would mean EUR 10,000 for a dwelling of EUR 100,000 and 25,000 euros in one of 250,000 euros. But in the Canary Islands, it is 6.5% (it is the IGIC-General Indirect Tax Canary). In the case of a public housing the VAT may be 4%, but it varies depending on the CCAA and the type of social housing in question.<\/p>\n

A second tax must be added to VAT: Documented Legal Acts (IAJD)<\/strong>. This tax is still paid by the buyer and will depend on each autonomous Community.<\/p>\n

TAXES OF THE PURCHASE OF A NEW HOUSING<\/span><\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Autonomous Community<\/strong><\/td>\nJURIDICAL ACTS DOCUMENTED (JAD) NEW WORK (%)<\/strong><\/td>\nVAT (%)<\/strong><\/td>\nJAD TO THE MORTGAGE (%)<\/strong><\/td>\n<\/tr>\n
ANDALUC\u00cdA<\/td>\n1,5%<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
ARAG\u00d3N<\/td>\n1,5%<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
ASTURIAS<\/td>\n1,2%<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
BALEARES<\/td>\n1,2%<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
CANARIAS<\/td>\n0,4%<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
CANTABRIA<\/td>\n1,5%<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
CASTILLA LA MANCHA<\/td>\n1,5%<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
CASTILLA LE\u00d3N<\/td>\n1,5%<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
CATALU\u00d1A<\/td>\n1,5%<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
CEUTA<\/td>\n0,5%<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
COMUNIDAD DE MADRID<\/td>\n0,7%<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
COMUNIDAD VALENCIANA<\/td>\n1,5%<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
EXTREMADURA<\/td>\n1,5%<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
GALICIA<\/td>\n1,5%<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
LA RIOJA<\/td>\n1,0%<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
MELILLA<\/td>\n0,5%<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
MURCIA<\/td>\n1,5%<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
NAVARRA<\/td>\n0,5%<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
PA\u00cdS VASCO<\/td>\n0,0%<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

On the other hand, for the homes used<\/strong> the most important tax is the Property Transfer Tax (ITP)<\/strong>. In this case, the amount depends on the percentage that is applied on the deed price and the autonomous community in which the house is located, although as a rule a rate of between 6% and 10% applies. However, for VPO<\/strong>, large families and young people often have reduced rates. For example, in Madrid, large families who buy a free home will pay 4% OF THE RTI on the deed price provided that the home purchased is the usual one. Currently these types apply:<\/p>\n

\nTAXES OF THE PURCHASE OF A USED HOUSING<\/strong><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
AUTONOMOUS COMMUNITY<\/strong><\/td>\nTAX ON PROPERTY TRANSFERS<\/strong><\/td>\nJURIDICAL ACTS DOCUMENTED TO THE MORTGAGE<\/strong><\/td>\n<\/tr>\n
ANDALUC\u00cdA<\/td>\n8,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
ARAG\u00d3N<\/td>\n8,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
ASTURIAS<\/td>\n8,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
BALEARES<\/td>\n8,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
CANARIAS<\/td>\n6,5%<\/td>\n0,0%<\/td>\n<\/tr>\n
CANTABRIA<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
CASTILLA LA MANCHA<\/td>\n9,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
CASTILLA LE\u00d3N<\/td>\n8,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
CATALU\u00d1A<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
CEUTA<\/td>\n6,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
COMUNIDAD DE MADRID<\/td>\n6,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
COMUNIDAD VALENCIANA<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
EXTREMADURA<\/td>\n8,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
GALICIA<\/td>\n10,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
LA RIOJA<\/td>\n7,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
MELILLA<\/td>\n6,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
MURCIA<\/td>\n8,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
NAVARRA<\/td>\n6,0%<\/td>\n0,0%<\/td>\n<\/tr>\n
PA\u00cdS VASCO<\/td>\n4,0%<\/td>\n0,0%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

It should be noted that for VPO, large families, people with disabilities and young people tend to have smaller types. For example, in Madrid large families who buy a free home will pay 4% OF THE RTI on the deed price, provided that the home purchased is the usual one.<\/p>\n

The management, an optional expense<\/span><\/strong><\/p>\n

The only optional expense for the sale of a home is that of the management company, the entity that the client can hire to process the settlement of taxes and carry out other paperwork. They are free professionals, so in this case there are no specific fees, and they are usually hired only when a mortgage is opened to acquire the property. Its approximate cost is 300 euros.<\/p>\n

2. Mortgage expenses<\/span><\/strong><\/p>\n

If the buyer is going to purchase the new or used home through a mortgage loan, some additional expenses would have to be added to those associated with the sale.<\/p>\n

The appraisal of the house<\/span><\/strong><\/p>\n

If the buyer is applying for a mortgage, they will have to pay a taxer to value the property and the bank knows what percentage of financing it can grant. In general, entities are lending an amount equivalent to 80% of the purchase price or the appraisal value, although some are financing 90-100% of the purchase price, usually looking at the lowest. In 2020, the appraisal costs between 250 and 600 euros, depending on the entity that performs the appraisal, the type of property and its valuation.<\/p>\n

The appraisal is valid for 6 months from the date of issue<\/p>\n

Since the entry into force of the new Mortgage Law in June 2019, the other expenses are borne by the bank: such as notary, registration and AJD.<\/p>\n

Opening fee<\/strong><\/span><\/p>\n

This commission can reach up to 2% of the capital borrowed, as agreed with the financial institution. And this amount is deducted directly from the money you deliver to the mortgage. However, there are many banks that do not apply this penalty.<\/p>\n

IAJD (Documented Legal Acts Tax)<\/span> <\/strong><\/p>\n

This tax is paid whenever you subscribe a notarized document which must then be registered and financially. Since November 2018, a law decree came into force requiring banks to pay this tax thereafter.<\/p>\n

Notary<\/strong><\/span><\/p>\n

Notary expenses are those incurred by the granting of the public deed of the mortgage loan. This expense has been borne by the entity since June 2019.<\/p>\n

The Land Registry<\/span><\/strong><\/p>\n

It also costs money to register the deeds signed by the notary. Again, the fees are set by regulations. This expense has been borne by the entity since June 2019.<\/p>\n

The management<\/strong><\/span><\/p>\n

The bank that grants us the mortgage is the one that selects a management company to carry out the administrative work and carry out all the formalities. This expense has been borne by the entity since June 2019. The company must return the leftover money to the mortgager and hand over the invoices and deeds after paying the notary and registration costs that its financial institution does not assume. We remember again that the AJD is paid by the bank.<\/p>\n","protected":false},"excerpt":{"rendered":"

Mortgage is not the only big expense involved in buying a home. In fact, there are many expenses and taxes that must be met to formalize the operation and become the owner of the property. 1. The costs of buying and selling 2. Mortgage expenses Between the appraisal of the house, the notary, the registration […]<\/p>\n","protected":false},"author":2,"featured_media":12940,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[220,256,207],"tags":[],"class_list":["post-6922","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-actualidad-inmobiliaria-en","category-mundo-inmobiliario-en","category-real-estates-en"],"_links":{"self":[{"href":"https:\/\/www.chakibpropertyworld.com\/en\/wp-json\/wp\/v2\/posts\/6922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.chakibpropertyworld.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.chakibpropertyworld.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.chakibpropertyworld.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.chakibpropertyworld.com\/en\/wp-json\/wp\/v2\/comments?post=6922"}],"version-history":[{"count":1,"href":"https:\/\/www.chakibpropertyworld.com\/en\/wp-json\/wp\/v2\/posts\/6922\/revisions"}],"predecessor-version":[{"id":6923,"href":"https:\/\/www.chakibpropertyworld.com\/en\/wp-json\/wp\/v2\/posts\/6922\/revisions\/6923"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.chakibpropertyworld.com\/en\/wp-json\/wp\/v2\/media\/12940"}],"wp:attachment":[{"href":"https:\/\/www.chakibpropertyworld.com\/en\/wp-json\/wp\/v2\/media?parent=6922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.chakibpropertyworld.com\/en\/wp-json\/wp\/v2\/categories?post=6922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.chakibpropertyworld.com\/en\/wp-json\/wp\/v2\/tags?post=6922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}