When purchasing your home in Gran Canaria, it is crucial to consider the additional costs beyond the property’s sale price. After inspecting potential homes and valuations, a 10% deposit, known as the Arras Contract, is required to secure the property.
- By entering into the Arras Contract, the buyer and seller agree to the terms of the contract, if either party backs out they will face compensation fees. If the buyer withdraws from the contract, they lose the deposit to the seller.
- While on the other hand, the seller must return the deposit amount to the buyer, plus an additional fee as compensation.
After signing the mortgage contract, the sale’s documentation process begins, which may take slightly longer than purchasing with available funds. It is essential to complete all necessary paperwork promptly to ensure a smooth and correct sale. Additionally, buyers should consider other expenses, such as taxes, notary fees, and property registry costs. This is important, when budgeting for a property purchase.
Canary Islands General Indirect Tax (IGIC)
(IGIC) is a tax of 7% of the sale value, that is only paid when purchasing a new home.
Documented Legal Acts Tax
The transaction costs for purchasing a home typically range between 0.5% and 1% of the property’s value.
Property Transfer Tax (ITP)
The tax rate for a used home is 6.5% of the sale value.
Notary Fees
If a property is purchased with a mortgage loan, the associated costs typically range between 0.5 and 0.75% of the property value, with higher expenses due to the need to formalise the mortgage before the public Notary.
Property Registry
Here you will find the calculations in Spain, depending on the price of the property:
- Property value less than €6,010.12
- €24.04
- Property value between €6,010.13 and €30,050.61
- Additional €1.75 per €1,000
- Property value between €30,050.62 and €60,101.21
- Additional €1.25 per €1,000
- Property value between €60,101.22 and €150,253.03
- Additional €0.75 per €1,000
- Property value between €150,253.04 and €601,012.10
- Additional €0.30 for each €1,000
- Property value more than €601,012.10
- Additional €0.20 per €1,000
The law sets the minimum at €20.04 and the maximum at €2,181.67
Additionally, a registration fee of 0.2% of the property value must be added to this amount.
We would be happy to provide you with an estimated cost of your home. If you have any questions regarding our pricing, please don’t hesitate to contact us for a free consultation. You can reach us at the following details here.
