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Property Buying Guide
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Taxes and Costs
In addition to the sales price, you will also have to bear in mind extra taxes and costs which amount to approximately 10% of the new declared value of the property.
This applies to both a resale and newly built properties.
These extra taxes and costs are made up of the following: -
- 6.5% ITP Tax (Impuestos sobre Transmisiones Patrimonials) for resale properties. 5.75% (VAT and stamp duty for new properties).
- Notary fees
- Property registration fees
- Translation fee (If you do not speak fluent Spanish)
- Legal fees (If a Lawyer is required)
- Plus Valia- This is capital gains tax on the LAND ONLY, Not on the building.
- Mortgage fees if a loan is required plus .75% stamp duty on mortgage deed.
These extras should add up to approximately 10% of the new declared value as it appears in the new title deed.
Documents required for Mortgage Application
Details required for Employees
- P-60 from all applicants
- Photocopy of all applicants valid passports
- Last 2 payrolls
- Justification of other income, if applicable.
- Justification of assets i.e. Current mortgages etc.
Details required for the Self-Employed
- Photocopy of all applicants valid passports
- Previous 2 years income tax returns
- Payments on account of income tax for previous 2 years
- Justification of other income, if applicable.
- Justification of assets (Net worth)
There are certain advantages of obtaining a mortgage in Lanzarote, for example, the interest rates here are much lower than in the UK.
Provided that you submit the correct requested documentation, you should normally get an answer within 2 working days.
The bank normally offers you as a non-resident, up to a maximum of 80% (subject to status) of either the valuation price or the actual purchase price, whichever is lower.
With this in mind it is sometimes worthwhile taking the time to compare offers made from other banks.
We as a company have a very good working relationship with Spanish Banks who offer an excellent standard of service to all nationalities. Some banks produce documents in your language making banking and more importantly distant banking easier than ever.
We shall guide you personally through the mortgage process to ensure that everything runs smoothly for you.
Apply for your mortgage online.
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