Perhaps the time has come to have your own home. You’ve been working hard, saving, and you want to take the leap and own your home. You may even have your eye on your dream home already. In this article we want to explain to you what are the home buying aids that you can request from the government and in passing we will tell you what are the expenses you will incur when buying a house so that nothing catches you off guard. We started!
The State, through the Autonomous Communities, offers a series of subsidies to facilitate access to a home to those who have more difficulties in obtaining it.
If you are interested in these aids, although they are of a state nature , remember that you must request it in your Autonomous Community . In fact, each of them has different criteria when granting them.
When to apply for home buying assistance?
These housing purchase aids are part of the 2018-2021 Housing Plan. It is a stable plan that continues in force despite the political instability that the country is going through. As the Autonomous Communities grant them , the deadlines for requesting the aid depend on each one of them.
Ask at the body in charge of housing in your Autonomous Community.
Why are these grants delivered?
Access to housing is one of the problems that most worries Spanish families. To facilitate this, the State grants subsidies that facilitate this access to those population groups that face different difficulties in gaining access to a home that they own.
Each Autonomous Community assesses which population groups are the most vulnerable in its territory and organizes subsidies to offer solutions to their local problems . To find out if you meet the requirements, you must go to your Autonomous Community.
Aid for the purchase of housing for young people
In the event that you are under 35 years of age, the State Housing Plan 2018-2021 has a series of direct aids for those under 35 to access housing in municipalities with fewer than 5,000 inhabitants . These grants are also managed by the Autonomous Communities.
The amount of the aid to buy housing for young people is up to 10,800 euros , the limit being 20% of the acquisition price.
Help for large families
If you have a large family , finding the right home becomes a bit more difficult. For this reason, the State and the Autonomous Communities have special aid for these families, in addition to tax deductions .
Large families have a discount on the payment of the Property Transfer Tax ( ITP), in case it is a second-hand purchase between individuals.
Large families can also access a social electricity voucher , regardless of their income.
We recommend that if this is your case, you search the benefits search engine of the Spanish Federation of Large Families for those that are available in your Autonomous Community.
Aid for the purchase of second-hand housing and maintenance
The State Housing Plan also includes an item of aid destined to finance the execution of conservation works , in order to improve the security of the houses.
Home purchase expenses
Although it may not seem like it, the mortgage is not the only expense you will incur when buying a home this year. There are several expenses and taxes that you must take into account so as not to get the odd scare.
Purchase and sale expenses
Appraise the home, go to the notary, registration, taxes … These are all mandatory expenses that are part of the operation of buying a home. Of course they will depend on whether it is a new or used home.
- Notary: the fees of notaries are regulated by the State, so depending on the size of the home, the public deed of sale prepared by a notary will cost you between 600 and 875 euros.
- Property registration . Again, the fees are set by law and the cost of registration depends on the price of the property. However, we can say that they are in the range of 400 and 650 euros.
- Optional expense: agency . It can cost 300 euros but they are in charge of processing the tax settlement and doing all the paperwork. It is an expense that you must value based on the time and knowledge on the subject that you have.
If you also have to resort to a mortgage loan to acquire your house, you will have to add additional expenses for the mortgage. That, yes, keep in mind that many of them are already run by the financial institution.
- Appraisal of the home . It can cost between 250 and 600 euros. In this case, an appraiser puts a value on the home that is used by the bank to calculate the percentage of financing that it can grant.
- Opening commission . It can be up to 2% of the borrowed capital. Look closely, many banks do not apply this penalty.
- Tax on Legal Acts . In this case, the bank is the one who must take care of this expense.
- Notary . As in the previous case, since they correspond to the public deed of the mortgage loan, they also correspond to the bank.
- Property Registry . It is also borne by the bank.
- Management . Again, it is borne by the bank.
Is there a difference between buying a second-hand home and a new one?
There are no differences in terms of expenses in general, but there are differences in terms of taxes.
For example, in the case of a new home, the Patrimonial Transfer Tax is replaced by the VAT paid to the seller. As it is subject to VAT, you will also have to pay the Tax on Documented Legal Acts that depends on each Autonomous Community.
Keep in mind that the VAT for a new construction home is 10%, except in the case of a new construction home with official protection – VPO – in this case the VAT is reduced to 4%.… Continue Reading