Mistakes you should avoid when buying a house in Spain

1. Not defining your budget realistically:

It is essential to establish a realistic budget that includes not only the price of the home, but also all expenses associated with the purchase, such as taxes, notary and registration fees, mortgage, renovations, etc. Don't forget to also consider monthly maintenance and community expenses. Our team of experts at Engel & Völkers Finance will provide you with comprehensive advice, adapting to your specific needs and objectives.

2. Not investigating the area thoroughly:

Before you fall in love with a house, spend time researching the area in which it is located. Analyzes aspects such as public transport, available services, security, leisure options, schools, etc. Make sure the area suits your lifestyle and needs and seek professional advice from our real estate consultants.

3. Do not compare prices and offers:

Don't settle for the first house you like. Compare prices and offers on our housing portal, since we have more than 13,000 homes in Spain alone. Research the market value of similar properties in the area to ensure you get a good price.

4. Not reading the documentation carefully:

It is crucial to carefully read all the documentation related to the purchase, including the sales contract, the property deeds, the mortgage conditions, etc. Do not hesitate to consult with one of our real estate consultants if you have any questions.

5. Not negotiating the price:

Negotiating the price of the home is a common practice in the Spanish real estate market. Don't be afraid to ask our real estate consultants for advice to propose an offer that is convenient for both parties, always based on solid arguments such as the condition of the property, the market value or the prices of similar homes in the area.

6. Not hiring a professional real estate consultant:

A professional real estate consultant can help you navigate the complex process of buying a home in Spain. He will guide you in the search for properties, help you negotiate the price and will accompany you throughout the process until the final signing.

7. Not getting pre-approved for a mortgage before you start looking for a home.

Pre-approval gives you an accurate estimate of the amount a bank is willing to lend you, allowing you to set a realistic price range for your search.

This will save you time and frustration by preventing you from falling in love with properties that exceed your financial capacity, plus presenting a pre-approval letter positions you as a serious buyer and attractive to sellers.

Increase your chances of having your offer considered, especially if there are several interested parties in the same property.

8. Not taking into account the costs of the reforms that you may need.

Performing a prior inspection of the home by an expert will help you identify possible necessary renovations that you may not have initially anticipated.

This avoids unpleasant surprises and additional costs once the purchase is made.

9. Not informing yourself about the taxes and fees that you must pay when buying a house in Spain.

It is essential to be well informed about the taxes and fees associated with the sale. These liens represent an additional cost that you must include in your budget to undertake the transaction completely and responsibly. Therefore, we leave you below the main taxes and fees to consider:

Value Added Tax (VAT): Value Added Tax (VAT) is levied on the acquisition of new homes in Spain, applying a general rate of 10%. However, this percentage is reduced to 4% in the case of officially protected housing (VPO) and publicly promoted housing, favoring access to housing for these groups.

It is important to highlight that in the Canary Islands, VAT is replaced by the General Indirect Canary Tax (IGIC), whose general rate is 6.5%.

Property Transfer Tax (ITP): The Property Transfer Tax (ITP) is a tax that taxes the acquisition of second-hand homes in Spain. Its tax rate varies between 6% and 10%, depending on the Autonomous Community in which the home is located.

Tax on Documented Legal Acts (IAJD): The Tax on Documented Legal Acts (IAJD) taxes the formalization of notarial and registry documents linked to the sale and purchase of homes. Its general rate is 0.5%, but it may vary depending on the Autonomous Community in which the property is located.

Registration fees: Lien for the registration of the property in the Property Registry.

Notarial fees: Costs for preparing the public deed of sale and other notarial procedures.

Agency fees: Fees for the management of the administrative and legal procedures associated with the sale.

It is important to consider that each Autonomous Community may establish surcharges or bonuses on these taxes and fees. In addition, consult with local authorities or a real estate professional to obtain accurate and up-to-date information about the specific costs in your case.

Including these expenses in your budget will allow you to ensure that you have the necessary funds to pay taxes and fees at the end of the sale.

At Engel & Völkers we have expert and highly qualified real estate consultants who will accompany you in every step of the process of buying your house in Spain. We will help you avoid mistakes, find the perfect property for you and get the best possible price.