One of the most frequently questions asked by our customers is about the expenses related to a new construction home purchase.
The aim of this article is indeed to answer this question and, thus, achieve clarity on the amount of money needed to purchase your desired home.
We explain you here one by one each of these expenses:
- IVA: Value Added Tax. (Impuesto sobre el Valor Añadido). This tax is associated with purchasing a new built property. In the Valencian region is 10%.
- IAJD: Stamp Duty Tax (Impuesto de Actos Jurídicos Documentales). This taxes related with legal acts operations such the Property deed. Its different depending on the region. In Comunidad Valencia is 1,5%.
- Notary: He is the one who performs the property deed, a compulsory document that will serve to register the house in the Public Property Registry. All the notaries have the same prices for the same services, although the amount to pay will depend on the house price. In our promotion, prices are between 900-1000€.
- Public Property Registry. Once the property deed is signed in the notary, it will be register in the Public Property Registry to notify the owner modification in a public document and then, avoid potential problems in the future. The costs of the register are also fixed although, similarly, the amount to pay will depend on the house price. It is usually about 500€.
- Administration management: It is responsible for making the necessary formalities till the house registration in the Public Property Registry. It is the only optional expense, because the buyer who knows how it works would not necessarily need it, even though it is always recommended. As it is a free professional exercise their fee is not regulated, but their labor fees are usually about 300€.
Other taxes that, even though are not associated with the buying process, but it has to be considered is the IBI (Impuesto sobre Bienes Imuebles), a property annual tax.
The IBI is issued by the City Hall where the property is located. For our properties this tax is around 250 – 550€ per year
We hope that this explanation has served you to clarify some doubts that undoubtedly arise when it comes to buying a house.
And, if you are valuing if one of our houses is for you, do not hesitate to contact us to get to know a person of our team who can clear all your doubts. We are here to make this road easier for you.