Buying a house in Calpe is not just about paying the purchase price; you also need to consider additional costs that can make up a significant percentage of the total expense. These costs vary depending on whether the property is new or second-hand. This detailed guide breaks down the main expenses so you can accurately calculate your budget.
Also, check out our guide on investing in luxury properties in Spain.
Costs of Buying a Second-Hand Home
If you are purchasing a second-hand home in Calpe, these are the main costs to consider:
1. Property Transfer Tax (ITP)
- 10% of the property value in the Valencian Community.
- 11% if the property exceeds one million euros.
- More information on Idealista.
2. Notary Fees
- Between 0.2% and 0.5% of the property value.
- Additional details on Notarios de España.
3. Property Registry
- Cost for registering the property under the buyer’s name, which varies depending on the property price.
- Learn more on Registro de la Propiedad de España.
4. Agency Fees
- Fees related to the administrative processing of the purchase.
Costs of Buying a New-Build Home
For newly built properties, the main costs include:
1. Value Added Tax (VAT)
- 10% of the property value.
2. Stamp Duty (IAJD)
- 1.5% of the purchase price in the Valencian Community.
- Reduced rate of 0.1% for the purchase of a primary residence (subject to specific requirements).
- More information on Agencia Tributaria.
3. Notary and Registration Fees
- Similar to those for a second-hand home.
Additional Costs to Consider
If financing is required, there are extra costs:
1. Mortgage Costs
- Includes property valuation, feasibility study, and loan origination fee.
- Usually between 1% and 2% of the loan amount.
- Learn more on HelpMyCash.
2. Municipal Capital Gains Tax
- A tax paid by the seller to the Calpe Town Hall, but it is essential to be informed.
- More details on Ayuntamiento de Calpe.
Example Calculation: €300,000 Home in Calpe
For a second-hand property:
- ITP (10%): €30,000
- Notary Fees (0.5%): €1,500
- Registry and Agency Fees (estimated): €1,000
- Total Approximate Cost: €32,500
These values may vary depending on the specific conditions of the transaction.
Check out our selection of villas in Calpe for under one million euros.
Tax Benefits
Some buyers may be eligible for tax reductions on the ITP:
- Young buyers under 35: 8% ITP for a primary residence.
- Large and single-parent families: 4% ITP for a primary residence.
- Disabled persons: 4% tax reduction.
It is crucial to consult with a real estate or tax advisor to ensure you meet the requirements and obtain the best information on the costs of buying a home in Calpe.
If you are thinking of selling your property in Calpe, discover why MP Villas is the ideal choice.