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How much does it cost?

Information about Las Terrazas de la Torre, Costa Calida and Murcia
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Duncan
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How much does it cost?

Post by Duncan » Thu Sep 29, 2016 9:40 pm

One question that prospective buyers always ask is "How much does it cost to buy an apartment and what are the ongoing costs?". Hopefully the following will be useful information:

How much does it cost to buy?

These costs are based on our purchase of a two bed apartment for €60,000 which commenced December 2014 and completed March 2015. Some of the charges relate to two owners (NIE Numbers, Non Resident Certificates)

Estate Agents
Fees = €3,000 (taken from the property purchase price)

Legal fees
Lawyers fees €799 + 21% tax = €966.79
NIE numbers x 2 €150.00 + 21% tax = €181.50
Power of attorney €65.50 + 21% = €79.26

Taxes
Transfer Tax = €57,000 * 8% = €4,560.00
Notary Fees & Land Registry Fees = €1,300.00
Land Registry Certificate (Nota Simple) = €30.00

Total for purchase €67,117.55

Useful links from the UK government
How to buy property in Spain
List of English speaking lawyers in Valencia, Murcia and Albacete

Utilities
A2z Telecom Internet connection, wifi and router = €100
Hidrogea Water meter and connection = €149.22
Iberdola Electricity meter and connection = €148.02

Total for utilities connection €397.24

If you don't want set these up yourself, you can pay your lawyer to do it for you, but they will charge around €300 + 21% tax. However you can easily do this yourself:
Bank
Bank non-resident certificate x 2 = €64.06

Furniture
To give a rough idea, you can get furniture packs supplied and fitted for €4,000-€5,000 which contain the following:

Living Room
TV unit and shelf unit
dining table
4 dining chairs
3 seat sofa
coffee table

Main Bedroom
double headboard
double bed and mattress
two bedside tables

Second bedroom
two single headboards
two single beds and mattresses
bedside table

Kitchen
fridge / freezer
microwave
dishwasher
washing machine

Bathroom
shower screen
bathroom mirror
bathroom fittings

Miscellaneous
lights pack
curtains pack

Of course you could probably get all the above cheaper if you shop around in the likes of Ikea and the large hypermarkets but then you have the hassle of getting them delivered and fitted.

You could also spend a lot more when you add in things like the TV, wardrobe drawer units, bedside lighting, terrace lighting, sun loungers, terrace furniture etc.

These are all the purchase costs that I can think of.

What are the ongoing costs? - Updated 17th April, 2017

The following are the running costs that I have incurred for the apartment so far:
  • Community Fees: depends on apartment size. In our block on Phase 1, these range from €1,234.58 to €1,503.24 per annum
  • Contents Insurance: can be obtained via Resortalia for around €100 per annum
  • Internet: €18 per month for a basic 4MB service
  • Electricity: €30-€75 per month (the upper number is for a full month of 3 aircon units at the height of summer)
  • Water: €25-€30 per month depending on water usage
  • Bank Charges: I use Deutsche Bank. Free banking if you transfer €600 per month into your account or €12 per quarter otherwise.
  • Keyholder: €150-€250 per annum depending on level of service required.
  • Council Tax (IBI) €225 per annum
  • Non Residents Income Tax €53,35 per person per annum assuming no rental income.
My total running costs are well under €3,000 per annum:

Code: Select all

Charge            Fixed     Variable    Total
Community Fees €1200.00		
Insurance       €100.00		
Internet        €216.00		
Electricity     €360.00       €60.00	
Water           €360.00       €20.00	
Keyholder       €150.00		
IBI             €225.00		
NRIT            €110.00		
Total          €2721.00       €80.00  €2801.00
Obviously one of the largest running costs are the community fees. These vary by block and by apartment. Before entering into a purchase contract, it is advisable to ask what they are to ensure there are no nasty surprises lurking.

addendum 20th August, 2018 - HOT TOPIC

BLOCK SAVING FUNDS


In addition to the general block and community expenses covered by community fees above there are a couple of block savings funds that you should be aware of

Reserve Fund - This is required by law. It is effectively a savings fund to cover unexpected expenses. Most blocks should have a full reserve fund except off-plan properties where there have been no previous owners in the block. Whenever unexpected costs are incurred, they are paid for out of the reserve fund and the fund would need to be topped up in the next budget year

Special Reserve Fund - The special reserve fund is a loan made by each block to the community to provide liquidity to cover for unpaid fees. Most blocks should have lent their share to the community except off-plan properties where there have been no previous owners in the block. This fund will be reduced and the loans repaid to the block when the Polaris World situation is cleared and community fees are collected from the new owners

Paint Fund - Block painting is an item that needs to be funded every 6 or 7 years. This is a large expense which would add around €25-€30 euros per quarter to the block maintenance budget if properly budgeted for. Unfortunately some blocks have used their paint funds to subsidise community fees and are saving nothing into this fund. Others have used some of the paint fund and are having to catch up by collecting €50 per quarter or more. Some have a fully up to date paint fund and are continuing to save at the normal rate.

The idea of the paint fund is to spread to cost of major maintenance items across multiple years to ensure all owners contribute, not just the ones who happen to own the apartment at the time of repainting. In addition to asking how much the community fees on your apartment are, it is worth asking how much of that, if any, is going into the paint fund and how big the paint fund is.
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Darren1965
Posts: 20
Joined: Fri Oct 28, 2016 2:43 pm
Location: Worksop

Re: How much does it cost?

Post by Darren1965 » Fri Oct 28, 2016 6:15 pm

Duncan
As a new owner this information is very useful. I am due to take ownership of my apartment in block 267 on 4th Nov,

Thanks
Darren

DGC
Posts: 1
Joined: Mon Oct 17, 2016 9:00 am

Re: How much does it cost?

Post by DGC » Thu Nov 10, 2016 6:11 pm

Hi Duncan
Your post is helpful, did you notice if your costs have increased since you move in?

With regards
Delphine and Gareth

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Duncan
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Re: How much does it cost?

Post by Duncan » Thu Mar 16, 2017 9:20 pm

Quick update. A fellow owner has said that it is much cheaper to apply for an NIE at the Spanish Embassy than paying your lawyers to do it. Also, not all banks require a non-resident certificate so an opportunity to save a few Euros.
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Duncan
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Re: How much does it cost?

Post by Duncan » Sat Mar 18, 2017 1:43 pm

Comprehensive article on How to Buy Property in Spain Safely
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DavePerry
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Location: Connah's Quay
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Re: How much does it cost?

Post by DavePerry » Sat Mar 18, 2017 2:39 pm

Excellent timing, Duncan. Thx

Iva & Mar
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Joined: Wed Feb 15, 2017 1:25 pm

Re: How much does it cost?

Post by Iva & Mar » Fri Mar 31, 2017 8:44 pm

Duncan wrote:
Thu Mar 16, 2017 9:20 pm
Quick update. A fellow owner has said that it is much cheaper to apply for an NIE at the Spanish Embassy than paying your lawyers to do it.
Hi Duncan :)
It is correct - you're right.
We've just received the numbers by post. We personally applied at the Spanish Embassy in Dublin, waited two weeks. The cost of 19 euros / two persons

DavePerry
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Location: Connah's Quay
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Re: How much does it cost?

Post by DavePerry » Sat Apr 08, 2017 3:41 pm

Hi all. The Non Residents Income Tax, is paying straightforward or is fiscal representation required / recommended at extra cost? The apartment will be in joint names & not rented, will costs double up?

Thx
Dave

Alex Nieto
Posts: 10
Joined: Tue Nov 01, 2016 9:59 am

Re: How much does it cost?

Post by Alex Nieto » Sat Apr 08, 2017 6:44 pm

Hi Dave,

As a owmer of a property here in Spain, you will probably need to pay only 2 kind of taxes:

Council Tax (called IBI): paid to the Town Hall. It doesn't matter the number of owners and the amount is calculated automatically by them. It can be direct debited and it is usually paid in Torre Pacheco at the end of August.

Non Resident Tax: paid to the Kingdom of Spain. It is not an automatical tax and it needs to be calculated and paid by each owner of the property individually. It is very easy to be calculated, but to be paid it is necessary that all the NIE numbers are registered in the National Tax Office (Agencia Tributaria). The amount to be paid is the same if you are 1 owner or 2, but it is divided among each owner depending on the ownership coefficient.

I would suggest you should go to a legal firm and let them to submit your taxes in your name. It is the easiest way.

Let me know if you have other questions :)

Regards

Ijl56
Posts: 5
Joined: Mon May 29, 2017 9:46 am

Re: How much does it cost?

Post by Ijl56 » Wed May 31, 2017 6:26 pm

Very useful info, will be completing on a property soon within next few weeks. one thing not mentioned is TV is that done as a add on to Internet service or how is it done.
Regards Isn

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Duncan
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Re: How much does it cost?

Post by Duncan » Fri Jun 02, 2017 1:25 am

I stream all my media via the internet. I already have subscriptions to Amazon Prime, Netflix and other streaming services that allow me to view just about everything I want to see at no extra cost. It will all depend on what services you subscribe to already whether there are additional costs.
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garypaterson58
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Joined: Thu Jul 05, 2018 9:58 pm

Re: How much does it cost?

Post by garypaterson58 » Tue Oct 16, 2018 10:07 pm

16th October 2018

Having completed on my one bedroom apartment in phase 1 on August 30th 2018 and having just fully fitted it out I thought I would give an up to date list of the costs involved. All costings are in euros and include 21% IVA

47600 purchase price
1500 notary and land registry fees
3808 transfer tax
121 NIE application
1209 legal fees
90.75 register NIE with tax office
121 legal fees
80.42 notary fees
363 solicitor connections of utilities
172 Sabadell bank fund transfer fee for purchase
91.60 yearly contents insurance
149.22 Hidrogea water meter fitting
148.02 Iberdrola electricity meter fitting
200 electrician light fitting and full clean
1300 outdoor patio furniture
3500 furniture/fixtures/fittings/household goods
5500 patio glass fitting

The total costs so far are
65733 euro
57660 £ (1.14 ex rate)

Carl543
Posts: 4
Joined: Wed Apr 17, 2019 9:21 am

Re: How much does it cost?

Post by Carl543 » Sat Jun 29, 2019 10:57 pm

Just an update on costs June 2019. we have just completed on phase 5 la Isla. We brought a resale which was already furnished and as it sits. Fees are still much the same on a €67000 property we paid €8188 in fees but this includes everything. Taxes, solicitors, nie, opening bank account, transferring everything in to our names. Notoriety etc etc. We was told that fees and property would be approximately what the sale price was in pounds so £67000 but it can in well under around £65500.

One thing I would recommend to everyone is book your money in advance and get best rate with a broker. Not via your bank. We saved close to £2700 booking our money 5 weeks in advance as rate changes rapidly from day to day. We also saved over £1000 compared to bank rate on day of freezing rate with broker.

Happy hunting everyone.

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