In Spain purchase costs could be 10%+ over and above the purchase price and when considering the dramatic changes in currency exchange rates, this percentage could climb much higher.
So, if your property price is £100,000 it could cost £110,000 (or more) by the time you complete and take possession of the property.
It’s important from the start that you clearly understand how much a property will cost you as this will determine what price range you can look at.
While researching the Internet, attending property trade shows and emailing estate agents, start to investigate what is included in the property price versus what gets added on. In Spain the purchase price includes the estate agency fee (usually 5%, but nowadays maybe 3%). For all property and land, 10% of the purchase price is paid as a transfer tax that goes to the Spanish Treasury. In addition, there are notary fees and a land/property registration fee, which varies according to the purchase price of the property. Also consider solicitors and mortgage fees. Solicitors usually charge 1% of the purchase price + VAT at 21%.