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,
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