Are you considering buying an apartment in Madrid? Spain’s capital city is a popular destination for tourists and expats alike, thanks to its rich history, vibrant culture, and thriving economy.
But how much should you expect to pay for your own piece of Madrid? Let’s take a closer look at the costs involved.
The Average Price of Apartments in Madrid
According to recent data from the Spanish property portal Idealista, the average price per square meter for apartments in Madrid is €2,631. This is higher than the average price per square meter for apartments in other Spanish cities such as Barcelona and Valencia.
However, it’s important to note that prices can vary significantly depending on the neighborhood. For example, the upscale Salamanca district has an average price per square meter of €4,880, while more affordable areas like Carabanchel have an average price per square meter of €1,496.
Additional Costs Involved
In addition to the purchase price of the apartment itself, there are several other costs involved in buying property in Spain. These include:
- Property Transfer Tax (ITP) – This tax varies depending on the region but generally ranges from 6% to 10% of the purchase price.
- Notary fees – The notary fees for registering a property sale typically range from 0.1% to 0.5% of the purchase price.
- Legal fees – Hiring a lawyer to assist with your property purchase can cost anywhere from €1,000 to €3,000.
- Mortgage fees – If you require a mortgage to finance your purchase, you’ll need to factor in additional fees such as appraisal costs and bank fees.
Financing Your Purchase
If you don’t have the cash on hand to purchase an apartment outright, you may want to consider obtaining a mortgage. Spanish banks typically require a down payment of around 20% of the purchase price, and interest rates are currently around 2% for a fixed-rate mortgage.
Keep in mind that as a non-resident, it can be more difficult to obtain financing from Spanish banks. You may need to provide additional documentation such as proof of income and employment.
Conclusion
Buying an apartment in Madrid can be a great investment for those looking to live or invest in this exciting city. While prices can vary significantly depending on the neighborhood, the average price per square meter is around €2,631.
In addition to the purchase price, there are several other costs involved, including taxes, notary fees, legal fees, and mortgage fees. With careful planning and financing, however, owning property in Madrid can be a lucrative investment opportunity.