26 May Expenses associated with buying a property (II)
When buying a property, having taken into account the associated expenditures both prior the purchase and those related to the transaction in itself, it is important to know who pays for what.
Expenses borne by the seller:
- Mortgage cancellation costs, if due. They usually come up to 2% or 3% of the total loan amount.
- Taxes on the Increased Value of the land, calculated according to the cadastral value of the land and the number of years of ownership.
- Fees of the property agent, if one has been contracted. If the agent has been taken on by the purchaser then those costs are borne by the buyer.
Expenses borne by the buyer:
- The agreed purchase price, obviously.
- Costs of the mortgage deed.
- VAT in the case of new constructions or Property Transfer Tax if the property is second-hand.
- Stamp Duty Tax
- Notary fees related to the deed of sale and necessary copies.
- Costs of registration in the Land Registry
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