Getting the figures right is an important task when buying a house. It’s partly the price of the house and if applicable the mortgage repayments but there are other considerations. The most commonly asked question we get is what is the cost of buying a house in Sitges beyond the price of the house itself… and so here goes:
The costs of buying a house in Sitges
Some of the baseline costs are as follows:
You will need to add approx. 12% – 14% onto the purchase price for most property purchases.
Presuming the property is a re-sale property the costs are more or less as follows:
|Property Transfer Tax or ITP|
(Impuesto de Transmisiones Patrimoniales)
|—||(10% of value of property)|
|Notary fees||—||(€600 – €1000)|
|Property Registration||—||(€400 – €700)|
|Gestoría||—||(€300 – €500)|
|Property valuation costs (for mortgage purposes)||—||(approx. €800)|
If you buy a new property you will pay VAT (IVA) at 10% instead of the property transfer tax) plus a tax on documented legal act called IAJD (Impuesto sobre Actos Jurídicos Documentados)
And the next question after that tends to be: ‘Apart from Utilities are there other costs associated with owning a house in Sitges?’
As a property owner in Sitges you will also need to pay IBI (Impuesto sobre Bienes Inmuebles) a local council property tax. Residents and non-residents are liable for this. The cost varies and depends on the value of the property on the ‘cadastral’ – this cost can be established before you buy. Typically houses in urbanisations will incur community fees. This is a normal fee associated with the general upkeep of the area where your property is located.
If you choose to not reside in Spain you will pay a non-resident’s income tax on an annual basis. This is a tax that is based upon the rateable value of your property in Spain.
Should you decide to rent your house on the vacation rental market through Utopia Villas, you will need to pay tax on the income generated. We can help advise you on this should you opt for this route.