What costs are involved in buying a second-hand home in Madrid
Taxes, notary, land registry, conveyancing and valuation: we review all the costs associated with buying a second-hand home in Madrid so you can plan your budget without surprises.
Buying a second-hand home in Madrid involves much more than the price shown in the advert. In addition to the amount agreed with the seller, there is a set of associated costs that is worth being clear about from the outset so there are no last-minute surprises. Knowing this in advance is key to realistically calculating how much you need to save and how it fits into your flat purchase in Madrid.
The tax charged on the purchase
The sale and purchase of a second-hand home is subject to a regional tax calculated on the value of the property. This is, by far, the highest cost in the process, so it is worth setting it aside from the start and not leaving it until the end. If you want to go into more detail on this point, in our article on what taxes are paid when buying a home in Madrid we explain how it works in more detail.
Notary: a compulsory and variable cost
The public deed of sale and purchase must be signed before a notary, and their fees are governed by an official tariff that depends on the value of the property, the number of pages and other circumstances of the deed. It is advisable to request a quote in advance and compare several notaries, as there may be small differences within the tariff.
Land Registry
Once the deed has been signed, it is essential to register it at the Land Registry so that ownership is protected against third parties. This procedure also has a cost, likewise subject to a tariff, which is usually somewhat lower than that of the notary. Without this registration, your ownership right is not fully guaranteed against future claims.
Conveyancing
Although it is not compulsory, it is very common to hire a conveyancing service to handle the payment of taxes, the settlement with the tax office and the registration entry. This expense is offset by the time saved and the peace of mind that all deadlines and administrative procedures are being properly met.
Valuation, if there is a mortgage involved
If you are going to finance the purchase with a mortgage, the bank will require an official valuation of the property carried out by an approved company. This report determines the reference value on which the lender will calculate the maximum amount to be financed, so it is an essential preliminary step if you need a mortgage to buy your home in Madrid.
Other costs to bear in mind
It is also worth allowing for the cost of an updated simple note from the Land Registry, which should be requested before signing any document (we explain how to interpret it here), any outstanding community charges to be settled, the energy performance certificate if the seller does not provide it, and, in the case of a mortgage, the arrangement fee or the insurance products the lender may tie to the loan.
How to plan this budget properly
The general recommendation is to set aside an additional percentage on top of the purchase price to cover all of these costs, always with the advice of a tax professional for your specific case, as the exact figures depend on the property, the method of payment and your personal situation. This calculation should be made before signing the deposit contract, to avoid committing yourself to an amount that you later cannot cover.
At UBICASA we accompany our buyers throughout the entire process, helping them understand each cost item and find the home that really fits their real budget, not just the sale price. If you are looking for a flat in Madrid, browse our catalogue of properties or contact us and we will help you plan your purchase without surprises.