How much does it actually cost to buy a house?

When trying to buy a home, you must evaluate all the costs it will include. Depending on these costs, you will be able to determine whether or not your purchase will prove to be a good investment. You can divide the house purchase costs in three categories:

  1. Registry and Notary Fees
  2. Taxes
  3. Mortgage costs


Registration and Notary Fees

The fees a notary charges are regulated by the state, who determines the cost depending on the final price of the real estate asset acquired. You must also consider the expenses involved in registering the property. This can be done electronically by the notary him/herself, or presented at the registry with a paper copy authorized by the notary. Notary and registration usually compile 2% of the total property purchase price. Lastly, if you choose to involve a person to manage your expenses, you must also consider the additional expense.

Las tres Comunidades Autónomas que vamos a valorar son Andalucía, Comunidad de Madrid y Comunidad Valenciana que muestran un crecimiento de su PIB muy parecido al del crecimiento del PIB español.

Como se puede observar en la gráfica, la Comunidad Valenciana es la comunidad que más le afecto la crisis y cuyo crecimiento ha sido más tardío y constante.


When investing in Spanish real estate, you must consider the tax burden implicated. If you’re concerned about purchasing a second hand home, you must pay a Transfer Tax (ITP), which will vary depending on the Autonomous Community where the real estate investment is made. The ITP usually falls between 6% and 10% of the property sale price. In the event you purchase a first-hand sale directly from the developer, you must pay the Value Added Tax (VAT) and the Documented Legal Acts (AJD) expenses. The percentage that must be paid from AJD is different in each Autonomous Community, but usually falls between 3% and 5% of the property’s sale price.

Mortgage Costs

A series of costs are implicated from the moment you solicit a mortgage:

  1. Nota Simple – Asking for a nota simple to register the property related to the mortagage costs around €10. It is not mandatory, but rather advisable to know if the good has any former mortgages
  2. Property Appraisal – the bank will need to carry out an appraisal of the property in order to grant a loan. The price of an appraisal varies between €300 and €600.
  3. Registration and Notary fees – the amount is fixed by the government and will depend on the price of home purchased.
  4. Documented Legal Acts – each Autonomous Community has its own percentage on the purchase price.
  5. Management – Usually the bank’s agency and its price will vary depending on the bank.
  6. Opening commission – each bank has its own commissions.

In conclusion, when evaluating a real estate investment, not only do you have to take into account the sale price of the asset being valued, but you must also assess the expenses incurred at the time of purchase. It is estimated that these expenses represent a 15% to 18% of the total sale price of the real estate asset.