Buying a Property

Make Your Money Go Further

Buying a property abroad is likely to be the biggest investment most people will make aside from their own home. 

Getting the financial aspects right from the word go is essential and will even save you money.

Taking the stress and hassle out of the financial side of your purchase is something we specialize in at Casas & Castles and we work with a number of professional partners who all have many years experience in making an overseas property purchase as easy and enjoyable as possible.


Need a Mortgage?

Financing your home in Spain has never been easier with Euro mortgages available from Spanish Banks and UK lenders alike.

With Euro interest rates lower than those in the UK, it’s often better to get your mortgage in Spain from a lender who really knows the market.

Whatever type of property you choose to buy, you can be sure that our financial partners can come up with a very competitive way for you to finance you purchase. Repayment and interest only mortgages are available and the repayment term can be anything up to 30 years, depending on your status. Non-resident customers can borrow between 60 - 80% of the Bank valuation of their property.

Changing Currency

Once you’ve chosen your dream property in Spain, of course, you have to pay for it in Euros. It is a fact, often overlooked, that even the smallest difference in exchange rate can have a massive effect on the real price of your property.

For example, a property costing 100,000 euros at an exchange rate of 1.15 euros to the pound will cost you 86,956.52 pounds. At a rate of 1.10, the same property would cost 90,909.09 pounds. A difference of 3,952.57 pounds.

Our currency advisors can keep you abreast of the fluctuations affecting your purchase and can even change your money into euros when the rate reaches a pre-agreed level.

A dedicated dealer will explain everything in plain English and help you achieve the very best exchange rate possible.

Mortgage and pension payments can be made on time and if you are buying an off-plan property, our currency specialists will arrange to make the stage payments on your behalf.

Additional Expenses

There are other expenses, on top of the advertised price of your property that you need to take into account when doing your sums.

Local taxes vary slightly from region to region, but what follows is a typical example of the additional expenses you might expect to pay.

All amounts are calculated or estimated on a property advertised for sale at 200,000 euros.

Table of Figures

7% IVA (Spanish VAT) or, in the case of a resale property ITP (Transmission Tax) at the same rate	Paid on the declared value of your property on your deeds.	14,000 euros
Legal fees	Property searches at the Land Registry and all legal costs associated with completion	1,000 euros approx
Notary Fees*	Notary costs associated with preparing your title deeds and registering them with the Land Registry	3,500 euros approx
Connection charges	Costs associated with contracting water and electricity services	500 euros approx
Total additional costs		19,000 euros approx.

* It is worth noting that if you need a mortgage to finance your purchase, some costs may increase. For example, the Bank mortgage will need to be registered at the Land Registry in addition to registering the actual property. Your lender may also charge a set-up fee for granting you the loan

After You’ve Bought

Although the running costs of property ownership are a fraction of what you would pay in the UK or Ireland, they still need to be factored into your calculations.

Again, calculations are made or estimated on a property advertised for 200,000 euros.

If your property is located on an Urbanization, it is common to pay fees for the annual upkeep of the communal areas and swimming pools etc.	Payable to the community, usually quarterly, direct from your Spanish Bank account	500 euros approx
Real Estate Taxes (IBI)	Set and payable to your local townhall and similar to local rates.	250 euros approx
Property Insurance	Contents and buildings Insurance	300 euros approx.
Financial representative	Non resident property owners should employ a fiscal representative to make sure their taxes are paid on time.	200 euros approx
Service charges	Annual standing charges for water and electricity services. Consumption costs are similar to the UK or Ireland	150 euros approx
Total annual running costs		1,750 euros approx