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Costs of purchasing property
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| There are several things to take into consideration:
fixed costs, such as taxes, variable costs such as notary fees and negotiable costs such as
estate agents' fees. It is generally accepted that all purchase costs combined sum up to
about 10 to 12% of the purchase price. See below for a breakdown: |
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Taxes
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Property purchase tax stands at 4.5% of the purchase price as of Jan. 2007 |
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The Value Added Tax (VAT) stands at 19% as of Jan. 2007, this will be added onto the estate agent's commission. |
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Notary Fees
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You will have to pay approximately 1.5 to 2% of the
purchase price as notary costs. The costs structure is degressive, meaning the higher the purchase price the lower the
percentage as fees. This estimate should also cover fees charged by the land registry. |
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Estate Agents' Commissions
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Real estate agents / brokers generally ask for a commission of 6%.
In most cases it is possible to negotiate this down to 3-5%. |
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Possible Additional Costs
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You may need additional services from surveyors, architects, lawyers etc.
for due diligence or assistance with the purchase contract. The overall costs for this are very much
dependant on the size of the property. If necessary, these costs should be well under 1% of the purchase price. |
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