At Maar Agency Property Advisor in Spain, we know that the purchase of a property is one of the happiest moments that we face throughout our lives, but we also know that it is not an easy task to understand all the previous procedures that It must be done before the acquisition, and of course, the expenses that the property maintenance entails. If we also add that, if we are in Chile and we are acquiring a real estate in a country in which we do not know its administration, we need you to help us know what other expenses I will have in addition to the purchase price of the property and especially to calculate, what will be the profitability of that investment.
The indirect costs that we must consider are the following:
- Property Appraisal Expenses: We must take this expense into account in the case in which we intend to apply for a mortgage loan, for which we must hire an appraisal company. The cost of this appraisal will vary depending on the value of the property and many other variables. This expense can range from 300-500 euros, and includes the preparation of documentation (cadastral information and deed of sale) and a visit to the property. This report has a useful life of 6 months to be legally valid.
- Notary fees: they must be paid by the buyer and are between 0.03% -0.45%.
- Expenses of the Property Registry: These expenses correspond to the registration of the sale of the home in the Property Registry, and vary depending on the price of the sale. They must be paid by the buyer; Except for the cancellation costs of eventual registration charges, which correspond to the seller. Registry rates range between 0.02 and 0.18% in Spain.
- Gatos de Gestoría: these are the expenses that in Chile for example we call accountant expenses and of course they are to be considered. The agency helps us to register and file taxes. These expenses must be borne by both the buyer and the seller and will vary depending on the company that is hired.
Among the services we offer at MaaR Agency Property Advisor in Spain, we include all the procedures mentioned above, to make it easier to buy and sell properties for our clients around the world.
For more information on the expenses derived from the tax, please refer to our previous article Taxation of Non-Resident Real Estate Investments in Spain.
