What are the expenses associated with buying a home?

There are several expenses associated with buying a home. When deciding to buy a house, it is essential that you know and take into account, at least, the four types of basic expenses:

1. House Value: It is the price that you agree to pay to the seller. Initially, you will have to pay a part of the amount of the house in the initial payment (private contract), usually about 10%, and the rest at the time of raising the public deed of sale in the notary.
2. Mortgage expenses: Since mid-2019, in Spain, mortgage expenses must be paid by the entity that gives the credit. Therefore, the only thing you have to pay is the appraisal cost and, depending on the bank, the opening and study commission, although many no longer charge it.
3. Real Estate purchase and sale expenses: At this point, you have to differentiate the taxes from when it is new construction (First transmission) or if it is second-hand housing. New homes are taxed throughout the territory in the same way since they are subject to VAT, a national tax at 10%. On the other hand, a community tax is paid for second-hand housing. This tax is called I.T.P. (Property transfer tax) and can range between 4% and 10%, in addition to having bonuses for the first home, for V.P.O., large family, etc.
4. Real estate consultant fees: This varies depending on the area and if you hire the service of a real estate personal shopper.

All these expenses must be paid before or at the time of signing the deed of sale. With another part of your monthly payment, interest on the loan will be paid if needed.

Because there are several costs associated with buying a home, you must speak with a professional real estate agent who can advise you on everything related to expenses and debt capacity.

This article is for informative and informative purposes. For this reason, it is essential, before making any decisions, you visit or contact a certified specialist in the field, as the expert's opinion is what should be considered.

Umida Lumsden

With a commitment to excellence, personalised service and an in-depth understanding of the Palma property market, Umida Lumsden guides her clients through every stage of the buying and selling process.

Her approach combines professional advice, commercial insight and advanced real estate marketing strategies to showcase each property at its best, highlight its unique features and connect with the right buyers.

For homeowners looking to sell, Umida develops a tailored marketing strategy designed around the individual characteristics of each property, ensuring an exceptional presentation and maximising its appeal in the market.

For those looking to buy, she offers a discreet and personalised service, identifying opportunities that match their preferences, lifestyle and objectives, with the aim of finding more than just a property: a place to call home.

Her philosophy is built on trust, transparency and dedication, delivering a seamless and professional real estate experience that exceeds expectations.

Because every property is unique, and every client deserves exceptional service.