6 Answers

Holiday home acquisition costs ?

Asked by: 13th November 2012

Hi folks, we are looking to buy a nice holiday home in Matagorda and wanted to know what the costs would be for a purchase price circa €100,000.  We know about the complex site service charge each month but what should we also budget for to complete the purchase.

Any advice would be very much appreciated.  I would emphasise that this is on a residential complex and we would not be renting to anyone, so no rental income (or tax on that?)



6 Answers

  1. larry connell on Nov 14, 2012

    now 100,000 euro, you will have to pay tax on the purchase price, so it is best agree with the vendor that the purchase price is 80,000 euro and 20,000 euro is for fixtures and fittings that way you only pay tax on the purchase price not the fixtures and fittings.
    open a bank account as a non resident, then deposit around 10,000 euro, this will cover all your fees, tax, notary fees, solicitor fees( English speaking).
    Make sure there is no outstanding money owing on the property otherwise you will be liable for that as well.
    you pay utilities like you do in the UK, water electricity, also you pay a community charge which is for the upkeep of the complex, the charge is set every year at the residents meeting.
    good luck on your purchase, hope this is helpful.

  2. Kevin Burton on Nov 14, 2012

    The simple rule of thumb is 10 per cent on top of your purchase price. this varies slightly and may be higher on a more modest purchase and lower on a more substantial purchase. MMake sure you use an independent solicitor and you will have to make a Spanish will.

  3. Kitty on Nov 14, 2012

    Don’t forget IBI which is the equivalent of rates/council tax and you pay a separate charge for the basuras (bins) on top of the IBI. These charges are based on the value of your property.

  4. Fred on Nov 15, 2012

    Thanks folks!

  5. Roy on Nov 24, 2012

    Download this great PDF guide from the following link


  6. Fred on Nov 25, 2012

    Can’t get that link to work Roy but thanks anyway…