What is the final cost of buying an apartment for sale in Madrid ?
How much money will you need to complete the purchase of this apartment ? Did you include commissions, legal and administrative fees as well as taxes ?
As a relocation entrepreneur working on the buyer’s side, I will give you the facts simply and clearly:
add minimum 7-10 % on top of the purchase price
There are 2 kinds of costs when buying an apartment in Madrid:
- taxes for the purchase,
- legal and administrative fees,
1. Taxes: 6 – 10 %
6 % for second hand apartment in Madrid, around 10 % in total for a new build apartment,
This is mainly for VAT: 10 % for new build, or ITP, its equivalent for second hand, 6% in Madrid only, the lowest in Spain (7 to 11% in other regions such as Valencia or Barcelona) starting in 2014.
Then there is a stamp tax (IAJD, Impuestos de Actos Juridicos Documentados) to cover the legal work to be done by the local government for the apartment registry: between 0,3 to 0,7 %
2. Legal and Administrative: 2000 to 4500 €,
This covers the work to be done by (decreasing order of budget spent):
- the “gestoría”, or accounting and administrative office: 1000 – 2000 €
- the notary: 800 – 1500 €
- the lawyer: 200 – 800 € (not mandatory but very strongly recommended).
- the surveyor: 300 – 500 € (optional, usually requested by your bank).
- deeds manager: 400 – 600 € (optional, if you do not want to deal with all the tax payments directly)
- architects: 500 – 700 € (optional, to ensure the structural safety and to confirm possible refurbishments)
In a nutshell, the tasks they have to complete are:
- obtaining you the NIE quickly, required Spanish identification to be the owner of an apartment in Madrid,
- checking the legal background and eventually estimating the real value of the apartment for sale,
- reviewing the offer and sales contract for the sale of the apartment,
- conducting the legal and administrative procedures to officialize the purchase of the apartment,
If you need professional help for your purchase Madrid, with specific answers to get the best deal, save 20% in average like our clients, and dodge the legal risks: