Complete Guide to Home Buying in Catalonia 2024
Everything You Need to Know in 2024
The purchase of a home is one of the most significant decisions in a person’s life, involving not only the mortgage expenditure but also a series of additional expenses that are essential to be aware of, especially in the Catalonia community. At Inmobiliaria Lloret de Mar, we are committed to keeping our clients informed about these crucial aspects. Below is a detailed guide to the expenses associated with buying a property in 2024, so you can be well-prepared.
Preliminary Expenses to Consider
Before becoming a homeowner, it’s important to note that you will face expenses and taxes that, according to experts, represent between 10% and 12% of the home price. This includes appraisal, notary, registration, and corresponding taxes such as VAT or ITP, with these costs varying based on whether the property is new or used and its location, especially in Catalonia where fiscal peculiarities may differ from other autonomous communities.
Notary Fees
The notary plays an essential role in formalizing the purchase, with fees regulated by the State. For a €100,000 home, costs range between €600 and €875, while a €250,000 home can reach €1,000. This is an unavoidable expense as it ensures the legality of the transaction.
Property Registration
Registering your new home in the Property Registry also incurs costs, ranging from €400 to €650. This step is crucial to ensure your ownership of the property.
Management Fees
Although optional, hiring a management service can simplify tax settlement and necessary paperwork. This service has an approximate cost of €300, being a recommended investment for those who prefer to delegate these tasks.
Taxes to Consider
Taxes represent a significant portion of additional expenses in home buying. In Catalonia, VAT for new homes is 10%, while the Property Transfer Tax (ITP) for second-hand homes varies between 6% and 10%, depending on various factors such as the type of home and whether reductions apply based on the buyer’s particular circumstances.
Other Associated Expenses
- Appraisal Costs: Necessary for a mortgage application, ranging between €250 and €600.
- Mortgage Opening Commission: Some entities charge up to 2% of the borrowed capital.
- Real Estate Fees: For those opting for a real estate ‘personal shopper.’
How to Handle These Expenses
The choice to hire a management service or not will influence how you manage these payments. If you decide to handle it on your own, you must be prepared to cover notary and registrar costs directly at the notary, in addition to the corresponding taxes paid differently for new and second-hand homes.
Total Expenses in Home Purchase
In Catalonia, the total of these expenses and taxes can represent a significant percentage of the home price. For example, for a €200,000 property, costs can vary significantly depending on whether it is new or second-hand, totaling between €23,300 and €13,800, respectively.
Updates in the Fiscal Value of Homes
Since 2022, the cadastral reference value has become the taxable base for key taxes such as ITP. This change aims to align the taxable base with the market value, providing greater transparency and fairness in property taxation.
