Other than the property price, are there any other costs to consider?
You need to bear in mind that buying a house generates a series of costs during the purchase process. These may include taxes, solicitor’s fees, property registration, bank fees, valuation costs and insurance.

What taxes need to be paid when you buy a house?
This depends on the type of property:
- Value Added Tax (IVA): This is only applicable in the first stage (buying directly from the property developer). The amount to pay is calculated on a percentage of the deed price (7% for unoccupied property and 4% for subsidised housing).
- Tax on Property Transfers (ITP): This is applicable to pre-owned properties. Normally it is 7% of the deed price, although it depends on each autonomous community.
- Tax on Documented Legal Acts (AJD): When the operation is subject to IVA and not ITP, you also have to pay tax on documented legal acts. The percentage depends on the atonomous community the property is located in.
- Tax on the increase in the Value of Urban Land: This depends on the registered land value, on how many years has past since you bought the property and on the town where the property is registered.

What are the solicitor’s fees?
The solicitor undertakes various tasks depending on what the client wishes to do personally. This includes consulting and warning clients about legal arrangements, whether administrative or fiscal. When buying a house there are also costs that you must pay the solicitor regarding deeds to be drawn up, the contract of sale, the provision of funds for registering the property and for the mortgage (where necessary). When signing deeds you must put aside some funds for the agencies which liaise with the government regarding administrative procedures. If, after you have paidv all necessary costs there is some remaining money, which is normal, the agency will credit your account. If, on the other hand, there is not enough money left, you will be given an additional bill.

What are the costs of registering a property?
Before you buy a property you may want to verify its state or its situation regarding taxes or whether the owner is really the owner of the house. In this case you must go to the property register and ask for details to check the title deeds and taxes involved with the property. Your ownership of the property, as well as your mortgage is later added to the register.

What are the costs vis-a-vis the agency which liaises with the government?
On some occasions you may use an agency which will handle documentation. In such cases you must anticipate costs arising from this document negotiation: tax, property registration etc.

WhatWhat are the valuation costs?
When applying for a mortgage, you may use valuation services to determine the true value of the property.

Is building insurance necessary?
Law 2/1981 states that a mortgage holder must have building insurance for a mortgaged property. It is also recommended, although not obligatory, to have mortgage insurance on the loan which covers the remaining payments should the mortgage holder(s) die. Bancajaoffers you the possibility to sign up for house insurance covering both the building and its contents.

Do you need to carry out checks before buying the property?
If you like the property, some checks can be carried out.
Run a check or obtain proof from the property register regarding the existence of certain conditions that may disvalue the property (whether the seller is really the owner, if there are any fees to be paid or rent contracts, etc.). If any of these circumstances exist, it is advisable to make sure that the purchase is not subject to any kind of fees. If this is not possible, you should ensure that you are completely aware of the extent of such fees.
At the town hall, you can check to see whether the property may be unfavourably affected by any planned building project, and whether it fulfils existing development project requirements. You can also find information regarding the amount of local taxes and capital gains tax paid.
For property that is mortgaged, it is a good idea to approach the finance company along with the owner to check outstanding debt, and whether you can take on such debt.