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)
Fees = €3,000 (taken from the property purchase price)
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
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
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 non-resident certificate x 2 = €64.06
To give a rough idea, you can get furniture packs supplied and fitted for €4,000-€5,000 which contain the following:
TV unit and shelf unit
4 dining chairs
3 seat sofa
double bed and mattress
two bedside tables
two single headboards
two single beds and mattresses
fridge / freezer
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.
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
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.