Financing questions

You cannot take a loan in Sweden using a Spanish property as security; however, you can mortgage your property in Sweden to purchase the property in Spain. You can also borrow money from a Spanish bank.

The price of the property is the price that the seller will accept. If you are willing to pay that price there will usually be an agreement. 

When buying a property in Spain, following payments terms will usually be applied. First a reservation fee is paid, and a reservation agreement is established. In relation with the signing of a purchase contract, you also pay a down payment (deposit), usually 10% of the purchase price.

When purchasing a new build property, a reservation agreement is made directly with the developer and you normally pay a reservation fee of 3,000 - 6,000 €.

In addition to the purchase price, you should be aware of that there are numerous of another fees and taxes, about 10-14% in supplementary costs.

For new build properties, there is a value added tax of 10% of the purchase price, plus stamp duty of up to 2%. For second-hand properties, there is transfer tax of 8-10% depending on the region and the purchase price. There is no stamp duty.

In Spain, a notary is always involved when the seller and buyer exchange the purchase contract. The buyer is responsible for paying the notary's fees. The fee varies depending on the scope and is based on the purchase price.

The new owner must register with the Land registry. This usually costs around 0.5% of the purchase price.

On entry to the property there are connection fees and/or fees for changing subscriptions for water and drainage, electricity and, if necessary, gas.

When it comes to financing a property, many choose to take a mortgage in a Spanish bank, then some supplementary cost will apply. The cost depends on the amount and what lending agreement you get from your bank.

In Spain you pay a council property tax and a national property tax, both based on the taxable value. The council tax varies between different councils and is between 0.4-1.1% and the state tax is between 0.25-0.5%. You do not pay any property tax in Sweden on Spanish property.

The ongoing costs are naturally dependent on what sort of property and how much you use it. The costs include community fee, electricity, water, home insurance and property tax. They are easiest paid via autogiro and we recommend you open an bank account with a Spanish bank.

The community fee (comunidad) includes cleaning and maintenance of the common areas such as pool and garden.