This article details some useful tips on how to buy a property in Barcelona.
Are you planning to buy a flat or a house in Barcelona, whether as a primary residency, a holiday property, or a profitable investment? You don´t know where to start? You don´t know the Spanish legislation?
We give you some useful tips on how to buy a house successfully and we tell you everything you need to know before buying a property in Barcelona.
Barcelona is indubitably one of the most creative and vibrant metropolis in Europe: its pleasant climate, its diverse gastronomy, its beaches and mountains, its multicultural environment, and its intense business, cultural and commercial life makes it one of the privileged destinations for those who want to buy a property or invest in the real estate market in Barcelona.
What important aspects do you have to take into account once you have made the decision to buy a property?
- Location, location, location
Location is key when investing in a property: Whether to live or to rent, it is important to look at factors such as the proximity to shops and businesses, educational centers, parks, and green areas, and the efficiency of public transport, which will always keep your investment growing.
- The budget you want to spend
You have to calculate very well the budget you want to spend, taking into account all expenses and taxes associated with the real estate purchase: community fees, doorman fees, IBI property taxes, different supplies, and the budget of the reforms to be carried out if any.
- The type of property you want to acquire
You must assess the type of property you want to acquire. Whether you want to use it as a primary residence or as an investment, you have to identify very well your needs: a single-family house, a flat with a terrace, the number of bedrooms, the necessity to have parking, to be reformed or not.
After defining your needs and the features of the property you wish to acquire, you have to start with the search, selection, and visit of the different real estate assets.
What are the necessary steps to follow once you have finally chosen the property you wish to acquire?
- Purchase offer and negotiation
After choosing the property you wish to buy and after checking the legal status of the property, you must submit a purchase offer to the seller with a price proposal. When the negotiation is concluded successfully, the next step is to sign a private contract between the seller and the buyer to reserve the property: “the Arras contract”.
- Signature of the Arras contract or Deposit contract
It is a private agreement signed between the seller and the buyer in order to reserve the property and which specifies the price and conditions previously agreed between both parties. The buyer must pay a deposit, normally 10% of the property purchase price. An Arras contract is not mandatory. If the two parties trust each other, they can decide to sign directly the final purchase deed.
- Verification of all the documentation
Before signing the final purchase deed at the notary, you have to do the necessary due diligence and verify all administrative and legal requirements. You have to check the property title, the cadastral information, the certificate of occupancy, the certificate of energy performance, and that the payment of the IBI property taxes and the different supplies is up to date.
- Signature of the final purchase deed at the notary
After having done all the necessary due diligence, you must verify that the purchase deed defends your interests before signing it. In the presence of a notary, both parties will sign the purchase deed; the buyer will pay the missing amount to the seller and the seller will provide the buyer with the property title.
What are the Taxes and Expenses associated with the purchase?
For the buyer:
- 10% ITP (Patrimonial Transmission Tax) if it is a second-hand property or 10% VAT if it is a new construction.
- between 5% and 2% for notary fees, stamps, and registration to the Property Registry. It can change if the property is acquired with or without a mortgage.
For the seller:
- The Plusvalia Property Tax. It is a local tax based on the increased value of urban land that the seller has to pay as a result of the Property transmission (flat, house, premises, parking space …). It is calculated on the number of years the seller has owned the property and on the real value of the property determined by the property registry. You can find all the necessary information on how to calculate the Plusvalia Tax on the website of the city of Barcelona. You can do the procedure online or in person with a copy of the deed.
- The seller must also assume all administrative expenses to cancel the previous debts if necessary (mortgage, debts related to community fees, the IBI etc.)
If you are a foreign citizen and you are planning to buy a property in Barcelona, you can find all the special requirements you need to meet when buying a home in Barcelona as a foreigner.
This purchasing process can result overwhelming for a buyer, whether national or international, who does not know the Spanish legislation and bureaucracy. At BARCELO PROPERTY INVEST, we offer you all the assistance you need to make this entire purchasing process a stress-free and risk-free one and to avoid any possible surprises.