The asking price is only the starting point. Taxes, professional fees, renovation and running costs can significantly reshape the true budget for a purchase.
We have therefore gone back to a real example: a 120 m² apartment with a 3 m² terrace, purchased for 480 000 € and fully renovated. The table tells the story better than we could: we have tried to include, as comprehensively as possible, every expense budgeted for the first year.
A real example, line by line
With renovation costs estimated at 1 300 €/m², a 10% contingency and 3 000 € for the technical architect, the documented budget reaches 710 285 €.
| Item | Assumption | Amount |
|---|---|---|
| Purchase price | Agreed price | 480 000 € |
| ITP | Taxable base of 480 000 € | 48 000 € |
| Buyer-side agency fees | None in this example | 0 € |
| Notary | Illustrative allowance | 2 000 € |
| Lawyer | Estimate | 2 500 € |
| Subtotal: purchase costs | Excluding purchase price and renovation | 52 500 € |
| Renovation works | 120 m² × 1 300 €/m² + 10% contingency | 171 600 € |
| Technical architect | Estimate | 3 000 € |
| Subtotal: renovation | 174 600 € | |
| Alarm system | 12 months | 565 € |
| Community fees | 12 months | 720 € |
| Water, electricity and gas | 12 months | 1 000 € |
| IBI | One year, without pro-rating | 900 € |
| Documented budget in this example | 710 285 € |
In this case, the budgeted items add 230 285 € to the purchase price — nearly 48%. This is not a magic percentage to apply across the board. That is precisely why every line needs to be worked out before making a commitment.
For a property with a reference value, the ITP tax base is the highest of that reference value, the declared value and the agreed purchase price. In this example, the tax base remains 480 000 €. The general rate is 10% up to 600 000 €, after which the scale becomes progressive. Special or reduced rates may also apply. The total does not include unspecified or variable items, including registration fees and any financing costs. Every purchase should be recalculated before a commitment is made.