What is the cost of buying a property in Lanzarote?
Before taking the plunge and purchasing a property in Lanzarote, you’ll need to make sure you understand all of the costs involved.
So what are the total costs of buying a property in Lanzarote?
In addition to the purchase price, there are various fees and costs associated with buying a property in Lanzarote. From legal costs through to purchase taxes so it’s important that you’re fully aware of the financial implications before proceeding. In addition to the value of the property itself, we recommend that you budget an additional 10 to 12 per cent of the property purchase price to cover all fees.
See our handy table below for a breakdown of the associated costs involved.
|Lawyer||Usually 1% of the purchase price||Minimum fees – typically €1000-€1500 – will apply for low-value properties.
Some lawyers charge an additional fee preparing Power of Attorney in order to assist with the property purchase.
|Notary||Approximately €1,000||Fees vary so you should seek a quote to confirm before proceeding.|
|Survey||Costs start at €550||Although it’s not common practice in Spain it’s always recommended to get a survey. Costs vary depending on the property.|
|Purchase taxes (ITP)||6.5% of the property value||If you’re buying a new build property directly from the developer you will have to pay Impuesto General Indirecto Canario (IGIC) instead of ITP, which is currently 4.5% plus 0.75% transfer tax.|
|Land registry fees||Approximately €750||Fees vary so you should seek advice on this from your lawyer.|
|Mortgage fees (if applicable)||Banks fees 1-1.5%|
Property valuation approx. €350-€800* (some lenders will waive this cost)
Mortgage broker fees: Upfront cost of €300-€500 plus 0.5-1.5% on completion
|You will also need to factor in additional legal fees for the preparation of a mortgage deed- your lawyer can advise you about this.|
You should also make sure that you know what the on-going financial obligations attached to your property purchase in Lanzarote are. How much will your bills cost? Are there any service charges on the property? The estate agent should to provide some information about this.
If you intend to rent your Lanzarote property out, you should also consider the associated costs of this – cleaning/management fees, tax, etc. You will also need to budget for the costs of insurance to cover the property and, if you rent it out, holiday makers in your home (click here to get a for a no-obligation holiday home insurance quote). For more information about renting out your property in Lanzarote read our article: A guide to renting out your Spanish holiday home.
If you’re considering buying a property in Lanzarote and have any questions contact our friendly team on 01244 478 911 or email email@example.com and we’ll be happy to help.
We can also connect you with useful contacts to help you buy a property in Lanzarote safely and efficiently, including an independent English-speaking lawyer, mortgage advisors, currency specialist and more!
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Article published: July 3, 2019