For individuals seeking a new home or investment opportunity, Valencia, Spain, offers an enticing blend of affordability and quality of life. However, before diving into the vibrant Valencian property market, it’s crucial to understand the various costs involved beyond the purchase price. With our extensive experience in Valencia’s real estate sector, we are here to guide you through the comprehensive upfront costs associated with buying property in this beautiful Mediterranean city.

1. Property Tax

When purchasing property in Valencia, one of the primary upfront costs to consider is property tax. In most cases, buyers are subject to a 10% tax on the property’s purchase price. It’s essential to note that this rate applies to both new builds and resale properties. However, there are exceptions where a 21% tax rate may be applicable, primarily for properties designated as “business premises.” It’s crucial to ensure that you understand the tax implications of your purchase and comply with the law.

2. Registry, Notary, and Gestor Costs

Once you’ve settled on a property, additional costs come into play, such as registry, notary, and gestor fees. These expenses are incurred to ensure a smooth transfer of property ownership. The notary ensures that there are no outstanding debts on the property and validates all necessary paperwork. The property registry ensures that the property is correctly transferred into your name. Meanwhile, the gestor oversees the timely processing of paperwork and the proper payment of taxes. These combined costs typically amount to just under 1% of the property’s sale price.

3. Estate Agency Commission

Real estate agencies in Valencia commonly charge a commission of 6%, which is typically split between the buyer and the seller. It’s important to note that even if you’re told you don’t need to pay agency fees, these costs may still be factored into the sale price. In such cases, the agency is working on behalf of the seller, striving to maximize their profit. Be cautious when buying directly from developers, as they may have their own agencies or offer higher commissions to entice buyers.

However, we work with many local agencies across Valencia. Through our partnerships, the agency usually does not charge their fee to the buyer in transactions we facilitate. This helps our clients save money. We strive for transparency and ensure our clients are fully informed about the transaction, with no hidden costs.

4. Legal Fees for Conveyancing

We handle all legal checks in-house with our team of experienced lawyers, ensuring the legality of the transaction and safeguarding your interests. This approach helps us maintain quality control and efficiency, without the extra cost of independent lawyers. For cases involving visas and work permits, we collaborate with external firms that specialize in these areas to provide you with expert service. Engaging with our comprehensive services protects your investment and streamlines the process.

5. Optional Costs on Purchase

Depending on your specific circumstances, you may encounter optional costs before making a deposit and completing the purchase:

• Architect and Survey Costs: If you’re buying a villa or a property that requires a thorough inspection, we include the survey cost in our fee and typically organize a preliminary inspection with our constructor to ensure quality and identify potential issues early on. This proactive approach is part of our commitment to provide comprehensive service without additional charges for surveys.
• Mortgage Fees and Valuations: If you’re obtaining a mortgage, you’ll incur fees from the bank for processing your mortgage application. Mortgage brokers can help secure competitive rates and generally charge fees starting at around 500 Euros. Additionally, you’ll need to cover the cost of property valuations, typically between 300-500 Euros.
• Bank Costs: Completing the property purchase involves exchanging a bank draft for the property keys at the notary’s office. The bank may charge fees for this service. For the final property purchase step, using our network, we aim to minimize the financial burden of bank costs on our clients.

In summary, buying property in Valencia entails various upfront costs, typically adding up to around 15% of the property’s purchase price. While these initial expenses may seem substantial, it’s essential to consider the city’s low ongoing costs, such as property taxes and maintenance fees, which make Valencia an attractive long-term investment. Working with Livin’Valencia not only helps in selecting and negotiating the right property but also in reducing these upfront costs by accessing our own network of professionals and services.

We are dedicated to helping you navigate the complexities of the Valencian property market and ensuring a smooth and informed buying process. We encourage prospective buyers to prioritize legal compliance, transparency, and thorough due diligence, with us or by themselves, to make their property acquisition in Valencia a successful and rewarding endeavor.