Housing and Real Estate

The most common fees on a mortgage are the opening and cancellation, in these two cases the financial institution is going to charge in respect of management charges a percentage of the loan amount we have requested. These fees can vary widely (from 0% to 3%) from one to another institution and are open to negotiation, so we need to have several offers in hand and negotiate with the client to give us better conditions.

Other committees that we can charge is the time to make a full prepayment or when we make a partial repayment to help reduce the monthly payment or the repayment period, in both cases we may charge a maximum of 1% for mortgages variable rate arguing that it is to offset the money they have left to win.

Mortgage costs
To formalize the mortgage loan requires the work of several professionals: notary, appraiser, registration, stamp, management, opening commission, if any. All these steps are necessary and of course in each of them must pay professional fees.

The costs can vary greatly from one Autonomous Community to another and found that in Madrid and Barcelona we will be spending more money than the rest of Spain.

Tax dollars to buy the house
* We will pay VAT in the case of a new home, in case of free pay 7% VAT and if it is a social housing would pay 4%.
* Stamp Tax, we will inform us of the cost it has on our community and that can vary from 0.1% to 1%.
* We will pay the Transfer Tax to make buying a second hand property and in this case would pay 6% (may vary in certain regions).
* In addition the purchase of housing and mortgage payment will also be subject to tax relief.

Capital gains refer to gains on the cost of ownership, plus any substantial adjustment to their value. That is, not necessarily the gain is measured strictly according to the purchase price.

You can include as part of your cost basis costs to sell, like the commission to the realtor, and the costs to prepare the property for sale as new paint or focoss, for example.

Also included is the cost of permanent improvements made to housing. Maybe you added a room or a bathroom. This increases the value of the house, but spending was not included as income.

If you lived in a house many years and much has improved or expanded, its value can be quite high, but its low purchase price. Say you bought a house 20 years ago is now worth $ 50,000 and 400,000. In principle, you have to pay tax on $ 100,000 if you’re single, but if you can prove that you have made significant improvements, reduce or even eliminate the tax.  Repairs do not have to adjust the cost of basic housing for only returned to normal operation.

That is, if it breaks the water heater and fix it, that’s not an improvement. However, if you replaced it with a larger and more efficient, that could be considered as an improvement.