When a property is purchased with mortgages, in addition to interest imposed by the financial institution, are generated other expenses. They also must be addressed at the time of purchase housing.

Cost breakdown

The costs to those who must cope with when buying a property with a mortgage are:

·  Inheritance Tax or VAT.

·  Tax documented legal (IAJD).

·  Notary.

·  Gestoría.

·  Property Registry.

·  Commission opening.

·  Star.

·  Other optional costs: insurance, real estate, etc.

Inheritance Tax

This is a tax that applies to real estate opportunity, namely those buildings that have already been used previously.

The amount corresponds to 6% or 7% of the price of housing marked in writing. The variation depends on the autonomous community where the purchase.

VAT

It is a tax that applies to those buildings for new construction or re-use. The amount corresponds to 7% of the price of the property marked in writing.

This is a fixed tax for the whole of Spain, regardless of the Autonomous Region in which they make a purchase of the property.

Tax documented legal (IAJD)

It is a tax mandatory and applicable to all types of buildings. señalado en la escritura. In the case of mortgages represents between 0.1% and 1% of the price of the property indicated in writing.

This tax suffers variation depending on the autonomous region where housing is you buy.

Notary

The notary, in the process of formalizing the writing of the property, serving as legalizing the contract regardless of the parties.

His minutes (tariffs) are regulated by law. In Spain it is customary for the notary is in close relationship with the land register.

Gestoría

It is responsible for handling the writing of the mortgage and taxes and the liquidation of mortgage loan until the property is registered in the land register.

The Register is divided territorially, it is necessary to place the property in the office, which regulates the area in which they are located.

Property Registry

This is the body responsible for making public information on the owner, transmissions, description, charges and other information about the property.

In case of house purchase second-hand, it is advisable to go to the Register to revise its current state and see that is not subject to restrictions of the property.

Commission opening

This commission is an amount which, in most cases, is paid to the financial institution when it formalizes the hiring of a mortgage.

The amount corresponds to the processing and administrative costs resulting from the process of recruitment of mortgage loan.

Star

The work of taxation consists in the economic valuation of the property by an expert specialist. The value of pricing refers to the notional amount of the market.

The amount is influenced by the characteristics of housing and other operations carried out in areas near, and old buildings with similar quality.

Remarks

The costs identified so far are the minimum mandatory generated by the processing of a mortgage. All expenses arising from the process of buying and selling, desgravan in the statement of income except for the optional ones such as real estate expenses.

Several adjustments can be made on any property to compare different values. In most cases must be recruited but not pay the mortgage with the entity that performs the appraisal.