The purchase of a house has associated expenses known as "notary fees", but what are they really? How much does it cost? We summarize these concepts
What expenses do I have when I buy a house?
When we are encouraged to buy a house we have to take into account the "notary fees".
This expense is an important amount to take into account, it can represent between 10% and 12% of the value of the house purchased, it will depend on the autonomous community in which we are, if we buy a new or used house ...
Although we pay it at the notary, it is not this who originates the expense, it is only an intermediary in the collection of various items:
1.- Notary fees: they are regulated by the State. Depending on the price of the transaction, it will fluctuate. For example, for a € 100,000 apartment, € 850 would be paid, and for € 250,000, about € 1,000
2.- Property Registry: every transaction must be registered in the corresponding Property Registry. This expense will be about € 500 on average
3.- Taxes: undoubtedly the most important item. In this case there is an important difference between a new house and a second hand one.
In the case of a new home, VAT must be paid, in this case 10% of the property's value. In this case there are also peculiarities. In the Canary Islands there is no VAT, the IGIC is paid, which is 6.5%, and in the case of public housing it will be 4%, but it varies depending on the autonomous community in which you are and the type of housing. To this must be added the Tax on Documented Legal Acts (AJD), which ranges from 0% in the Basque Country, Madrid 0.7%, to 1.5% in various communities.
In the case of second-hand housing, the most important tax is that of Patrimonial Transmissions (ITP), and again, it ranges between 6% and 10% depending on the Autonomous Community where you are. There are also reduced rates for VPOs, for example a large family in Madrid will pay 4% ITP, if it is a habitual residence.
4.- Mortgage Expenses: applying for a mortgage involves some additional expenses, which, as we have seen lately, there are judgments that are passing on these expenses to financial institutions. But we detail those that are caused:
Appraisal of the house: An appraiser must value the house, on this appraisal, the bank will set the amount of the mortgage to grant. This cost ranges between € 250 and € 600
The following expenses, according to the Mortgage Law of June 2019, must be assumed by financial entities:
Opening commission, can reach 2% of the mortgage
IAJD: it is the tax that it entails whenever a registrable notarial document is signed
Notary: for the execution of the public deed of the mortgage loan.
Property registration: they are stipulated, and are those corresponding to the registration of this deed
And this is all, without a doubt an amount to take into account when going to buy a house