Here you will current news and articles of interest about the real estate sector

When purchasing a home, the associated expenses must be considered.The main expenses are detailed below.

1. Taxes:

- Value Added Tax (VAT).
This is due on new construction and the first transfer. It is generally taxed at 10% and 4% on social housing.

- Property Transfer Tax (ITP).
This is due on second or subsequent transfers.It varies by Autonomous Community. In Catalonia a progressive rate is applied based on the value of the property: 10% up to the first €600,000 €, 11% on the excess up to the next €300,000 €, 12% on the excess up to the next €600,000 € and 13% on the remaining excess.
The rate is reduced to 7% for social housing and to 5% when the buyer meets certain requirements.

- Stamp Duty (IAJD).
There are two fees: one fixed and one variable.
The fixed fee refers to the stamped paper on which notarial documents must be issued and amounts to €0.30 per sheet and €0.15 per page.
The variable fee depends on the Autonomous Community.In Catalonia it is 1.5% of the property's value.
For new-build properties sales both the fixed and variable fees must be paid, while for second-hand properties sales only the fixed fee must be paid.

- Municipal capital gains tax (Tax on the increase in the value of urban land).
According to regulations, this tax must be paid by the seller, although it is possible to agree otherwise.

2. Notary Fees:

The purchase and sale must be formalized by public deed before a notary. Notary fees are regulated by law and vary depending on the price of the property. They typically range between 0.2% and 0.5% of the purchase price.

3. Property Registry Fees:

Once the deed is executed, it must be registered in the Property Registry, whose main function is to guarantee legal security and provide greater protection to the owner. Fees are also regulated by law and vary depending on the price of the property. They amount to between 0.10% and 0.25% of the purchase price.

4. Mortgage costs (if financing is available):

- Property appraisal:
This will be carried out by a company approved by the Bank of Spain and usually costs between €300 and €500.

- Mortgage arrangement fee:
This is a charge that banks apply at the outset to cover administrative, assessment and management costs. It usually ranges between 0.5% and 1% of the loan value.

- Home and/or life insurance:
By law it is only compulsory to take out home insurance with coverage for damage caused by fire, flooding or natural disasters. However, banks recommend taking out other types of insurance, such as life insurance.

Below we'll share some practical ideas and tips you can follow to boost the value of a home you're planning to sell.

1. Neutral colors in paint.

An easy and inexpensive way to create more spaciousness and light in the rooms of a home is to use neutral colors with low saturation tones and without a dominant primary color, such as white, light gray, or beige. They are characterized by their warmth and elegance, allowing them to create a serene and welcoming atmosphere and are ideal for achieving a minimalist look.

2. Order and cleanliness.

A tidy home optimizes the use of space, making it a more pleasant and functional place and contributing to the well-being of those who live there. Likewise cleanliness in a home is essential to convey peace and tranquility and create a healthy and positive environment that helps visitors imagine themselves living there.

3. Lighting.

You can improve the value of a property by following some simple lighting tips, such as maximizing natural light to make rooms feel more spacious using mirrors and light curtains that reflect and transmit light, using warm and neutral light bulbs that encourage relaxation and rest, installing auxiliary lamps that help illuminate areas of the home that the main light fixture doesn't reach and also decorate the home, etc.

4. Plants.

Introducing plants adds a touch of color and vitality to the home.They're also beneficial for your physical and mental health as they help purify the air, increase humidity, absorb noise and reduce stress.
On the other hand they're an additional decoration and adornment for the home.
So there are only advantages, although it is advisable to select the most suitable plants according to the characteristics of each space where they will be placed.

5. Clear spaces.

Keeping rooms clear and organizing the space helps create a sense of greater spaciousness. It's essential to find a balance when arranging furniture. It is advisable to remove or hide unnecessary objects and items that do not contribute anything, avoid overloading the rooms and use furniture with clean lines, prioritizing simplicity, functionality and harmony. The goal is to create a calm, tidy and welcoming environment.

In short, you don't need to make large investments to improve the value of your home. Just follow these tips.

Taking out a mortgage is a very important financial decision and multiple factors must be considered before making a decision. Here is a list of the main issues you should consider:

1. Mortgage type.

• Fixed rRate: The interest rate remains unchanged throughout the term of the loan. It offers greater stability but usually has a higher initial interest rate.
• Variable rate: The interest rate varies based on the reference index (usually the Euribor). The initial installment is lower but there is a risk of interest rate increases.
• Mixed rate: Combines an initial fixed-rate period with a subsequent variable-rate period.

2. Interest rate.

• APR (Annual Percentage Rate): Includes not only the nominal interest, but also fees and other charges.It is the most reliable indicator for comparison.
• NIR (Nominal Interest Rate): This is the "pure" interest, without any additional charges.

3. Monthly installment and capacity payment.

• It is advisable to consider and analyze how the installment would be affected by possible interest rate increases if you choose a variable-rate mortgage.
• You should ensure that the monthly installment does not exceed 30-35% of your net income.

4. Repayment term.

• The longer the term, the lower the payment, but the more interest you'll pay overall.
• Choose a term that allows you to live comfortably without overpaying in the long run.

5. Fees and associated expenses. 

• It is advisable to find out about the fees for opening the mortgage, early repayment (repaying part or all of the loan capital ahead of schedule), subrogation (transferring the mortgage to another bank to obtain better terms), novation (changing the conditions with the same bank), etc.
• Under the new Mortgage Law many of the fees associated with a mortgage must be covered by the bank (such as Notary fees, Property Registry fees and administrative fees).

6. Linked products.

• Some banks offer better terms if the buyer takes out insurance, credit cards, pension plans, etc.
• Consider whether you really need these products or if they make the mortgage more expensive in the long term.

Increases in value resulting from the following are exempt from paying capital gains tax:

a) The creation and transfer of any easement rights.

b) Transfers made by persons as a result of the transfer in lieu of the habitual residence of the mortgage's debtor or its guarantor, for the cancellation of debts secured by a mortgage on that property.

c) Transfers of the habitual residence made in notarial or judicial foreclosure proceedings in which the requirements indicated in the previous section are met.

d) Transfers of properties located within the perimeter defined as a historic-artistic site or that have been individually declared to be of cultural interest, when their owners or holders of real rights can prove that they have carried out conservation, improvement or rehabilitation work on the aforementioned properties at their own expense.

On the other hand, the Law Regulating Local Taxes allows local councils to grant discretionary discounts in certain cases. In the case of Sant Cugat del Vallés, the following discounts are established:

a) In transfers by inheritance when the acquirer is a first-degree ascendant or descendant by blood or adoption:

- 95% discount if the primary residence is acquired.
- 50% discount if the acquired property is not the primary residence.

b) In transfers by inheritance where the acquirer is the deceased's spouse or other de facto or de jure unions with identical rights recognized in the tax system:

- 95% tax relief if the primary residence is acquired.
- 60% tax relief if the acquired asset is not the primary residence.

c) In inheritance transfers from parents to children or from children to parents of premises used for economic activity, if the activity is maintained, will benefit from a 75% reduction.

The definitive enjoyment of the reductions is conditional upon the purchaser maintaining the property in their estate and continuing to carry out the same economic activity in the case of section c), for four years following the death of the deceased.
In the event of non-compliance with the maintenance rule a supplementary self-assessment of the subsidized portion must be submitted.

For the purposes of applying the subsidies the habitual residence is defined as the address of the deceased in the Municipal Residents' Register. However, the residence will not be considered to have lost its habitual character if the removal from the register was due to sufficiently proven health reasons.
Up to two parking spaces and a storage room may be included with the primary residence, provided they are located in the same building or urban complex as the transferred residence.