Author Topic: First time buyer  (Read 930 times)

Offline Irish paddy

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First time buyer
« on: March 16, 2018, 02:42:58 am »
Hi I’m just wondering would anyone have rough idea of how much I wound have to pay in legal fees and such to get a property I’m renovating into my name with all sales taxes property cost around €30,000

Offline Logitechtom

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Re: First time buyer
« Reply #1 on: March 16, 2018, 07:11:19 am »
You would need to ask a local solicitor, but I would guess around e500 - assuming no major issues with the documents.

Tom.
« Last Edit: March 16, 2018, 07:13:17 am by Logitechtom »

Offline Johnrgby2

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Re: First time buyer
« Reply #2 on: March 16, 2018, 07:37:47 am »
You would need to ask a local solicitor, but I would guess around e500 - assuming no major issues with the documents.

Tom.

Tom, I believe that to be a little conservative, I would suggest nearer to €2K would be more realistic, but certainly agree get professional advice.

Offline spitfire58

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Re: First time buyer
« Reply #3 on: March 16, 2018, 10:35:55 am »
You would need to ask a local solicitor, but I would guess around e500 - assuming no major issues with the documents.

Tom.

Tom, I believe that to be a little conservative, I would suggest nearer to €2K would be more realistic, but certainly agree get professional advice.

I would agree with John R. We we something over 3k for a purchase in the region of 47k so 2k for 30k sounds more reasonable. You also have to remember that some things will be a set charge so even with a cheaper purchase you will have a bottom level of fees that it won’t go below

Offline Logitechtom

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Re: First time buyer
« Reply #4 on: March 16, 2018, 18:20:14 pm »
I paid e500 for a purchase in October 2016, additional services (NIE applications, 2 Wills and various advice on other matters) were charged extra and they came to around e500 as well.  We didn't negotiate a special price, so I assume we were charged standard rates.

Tom.

Offline Johnrgby2

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Re: First time buyer
« Reply #5 on: March 16, 2018, 18:44:34 pm »
I paid e500 for a purchase in October 2016, additional services (NIE applications, 2 Wills and various advice on other matters) were charged extra and they came to around e500 as well.  We didn't negotiate a special price, so I assume we were charged standard rates.

Tom.

Tom if that is what you paid good luck to you, but it sounds remarkably cheap, but I stand by my original guesstimate.

Offline spitfire58

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Re: First time buyer
« Reply #6 on: March 16, 2018, 23:39:21 pm »
I paid e500 for a purchase in October 2016, additional services (NIE applications, 2 Wills and various advice on other matters) were charged extra and they came to around e500 as well.  We didn't negotiate a special price, so I assume we were charged standard rates.

Tom.

As I said, ours was in November 2016 & we were over 3k in total. That included everything, NIE’s, purchase, POA etc so you got a great deal Tom. I worked out that ours was approx 10.5% of property price which is in the ballpark of what is usually estimated.

Offline Irish paddy

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Re: First time buyer
« Reply #7 on: March 17, 2018, 01:14:09 am »
Thanks for all your help I appreciate it would any of you know a English speaking local solicitor? TIA

Offline Johnrgby2

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Re: First time buyer
« Reply #8 on: March 17, 2018, 09:04:48 am »
Thanks for all your help I appreciate it would any of you know a English speaking local solicitor? TIA

We need some Idea as to where on The Island you are located to answer that one.

Offline Logitechtom

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Re: First time buyer
« Reply #9 on: March 17, 2018, 09:11:20 am »
I'd guess the reason for the big difference is down to what you class as legal fees.

The costs I quoted were the fees I paid my solicitor to undertake the work NOT the various other fees that you end up paying as part of the process (taxes, notary fees, land registry fees etc).  If you include all those costs, you do end up close to 10% (or a little over).

Due to the low cost of this property, the standard 10% may rise to 15 or 20%.

Raquel Reguera Hernandez is a partner at ADR.

DAMSELL@interbook.net. 34 928 86 74 67. Claire usually answers the phone and is English. Offices are in Corralejo.

Offline Johnrgby2

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Re: First time buyer
« Reply #10 on: March 17, 2018, 10:16:39 am »
I'd guess the reason for the big difference is down to what you class as legal fees.

The costs I quoted were the fees I paid my solicitor to undertake the work NOT the various other fees that you end up paying as part of the process (taxes, notary fees, land registry fees etc).  If you include all those costs, you do end up close to 10% (or a little over).

Due to the low cost of this property, the standard 10% may rise to 15 or 20%.

Raquel Reguera Hernandez is a partner at ADR.

OK Tom an obvious misunderstanding, but now we are on the same page, percentage-wise you may be right about the increase, as some fees are fixed as Ron pointed out earlier and while they are fixed will increase the % costs on lower-cost properties.

DAMSELL@interbook.net. 34 928 86 74 67. Claire usually answers the phone and is English. Offices are in Corralejo.

Offline Lexeus

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Re: First time buyer
« Reply #11 on: April 19, 2018, 13:38:37 pm »
It may be of interest to you that if you are a first time buyer in the EU and you are spanish resident and under 35 years old, you pay a reduced rate of 4% ITP on a 2nd hand property transfer..... or if it was a new build 3% IGIC

With regards to the land registry and notario there are government authorised charges which are on a sliding scale where the charge works out as a greater percentage the lower the value of the sale.

This is 1989 but I think it is uptodate for land registry charges :) https://www.boe.es/buscar/act.php?id=BOE-A-1989-28112

The relevant part for you would be:
Número 2. Inscripciones.

1. Por la inscripción, anotación o cancelación de cada finca o derecho, se percibirán las cantidades que fijan las siguientes escalas:

a) Si el valor de la finca o derecho no excede de 6.010,12 euros, 24,040484 euros.

b) Por el exceso comprendido entre 6.010,13 y 30.050,61 euros, 1,75 por 1.000.

c) Por el exceso comprendido entre 30.050,62 y 60.101,21 euros, 1,25 por 1.000.

d) Por el exceso comprendido entre 60.101,22 y 150.253,03 euros, 0,75 por 1.000.

e) Por el exceso comprendido entre 150.253,04 y 601.012,10 euros, 0,30 por 1.000.

f) Por el valor que exceda de 601.012,10 euros 0,20 por 1.000.

that means €24 + (€1.75 x 24) = €66 for the land registry


For the notario I have this link: https://www.boe.es/buscar/act.php?id=BOE-A-1989-28111

The relevant part for you would be:
Número 2. Documentos de cuantía.-1. Por los instrumentos de cuantía se percibirán los derechos que resulten de aplicar al valor de los bienes objeto del negocio documentado la siguiente escala:

a) Cuando el valor no exceda de 6.010,12 euros: 90,151816 euros.

b) Por el exceso comprendido entre 6.010,13 y 30.050,61 euros: 4,5 por mil.

c) Por el exceso comprendido entre 30.050,62 y 60.101,21 euros: 1,50 por mil.

d) Por el exceso comprendido entre 60.101,22 y 150.253,03 euros: 1 por mil.

e) Por el exceso comprendido entre 150.253,04 y 601.012,10 euros: 0,5 por mil.

f) Por lo que excede de 601.012,10 euros hasta 6.010.121,04 euros: 0,3 por mil.

that means €90 + (€4.5 x 24) = €198 for the Notario

Disclaimer, I haven't actually done this my self and I would use these figures as a guide because I believe there must be some adjustment for inflation
« Last Edit: April 19, 2018, 13:49:59 pm by Lexeus »