Amid theturbulence of the past year or so, we can hardly blame you foryearning for a bit of escapism – and for many people lately, thishas centred on what may have been a long-held dream of theirs to buya property in Sotogrande.
But if you’re browsing your Sotogrande propertyoptions on an online listings portal like Property Sotogrande, it’scrucial to be mindful that the headline property price won’t beyour only expense.
In fact, you can expect the taxes and other costsassociated with buying a house in Sotogrande to effectively add about12% to 15% to the purchase price. These further costs aren’tnecessarily “hidden” costs as such, but they’re certainly onesyou should be making yourself fully aware of before entering theCosta del Sol property market.
So, what are some of these specific extra coststhat can be so easily overlooked?
Will you be paying VAT and stamp duty, or TransferTax?
While a lot of the additional expenses incurredduring a Sotogrande property purchase may be broadly the same whetherone buys a new property from a developer or instead a resale propertyfrom a private individual, there is one especially importantdifference to note.
In short, if you buy a property in Sotograndenew from a developer, you will be required to pay VAT – instead ofa Transfer Tax – as well as stamp duty. Those purchasing a resaleproperty, meanwhile, will be expected to pay the Transfer Tax.
This is where things get slightly more complicatedfor those interested in buying a home in Sotogrande or elsewhere inAndalucía, given the regional government’s recent approval of adecree lowering not only the Transfer Tax, but also stamp duty.
That means potential savings for buyers of resaleand new-build Sotogrande homes alike. However, they’ll need to actdecisively, given that these reductions are only set to be in placeuntil 31st December 2021.
The changes took effect from 27th April 2021. Theymean that Transfer Tax, at the time of typing, is a fixed 7% forresale homes in Andalucía, as opposed to the 8% to 10% rates thatpreviously applied depending on the value of the property. Stampduty, meanwhile, had previously been 1.5%, but has been brought downto 1.2% by the decree. Then, there’s the VAT rate, which remains at10%.
But there are plenty of other costs to be awareof when you buy a property in Sotogrande
The aforementioned expenses will make up asignificant proportion of the extra costs you’ll need to accountfor when purchasing a Sotogrande home. The rest of the typically 12%to 15% of “hidden costs” will be made up of the likes of legalfees, notary and registry fees, and the fees you’ll incur forvarious required documents like the NIE application and certificates.
There are also naturally the costs of a mortgage,if you will need one, as well as banking costs and the costs involvedin furnishing the property where this may be required.
The expenditure involved in acquiring a Spanishproperty can therefore rapidly accumulate beyond your initiallyintended budget, if you aren’t fully prepared for what’sinvolved. This is why we would always urge you to seek professionaladvice before you make any moves to buya property in Sotogrande, especially as such experts willalso be well-versed in the latest tax and legislative changes thatmay apply by the time you read this.
Browse Property Sotogrande today, andyou’ll see up-to-date listings for some of the most in-demand homesacross this highly desirable part of the Costa del Sol. We source ourlistings from multiple leading estate agents serving the local area,so there’s no need to start your property search anywhere else!
