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Where should I buy?

Unless you know the area well, the first question any potential buyer asks is where should I buy? In Barcelona? Or on the Costa Brava?

Here at Barcelona & Costa Brava Sotheby´s Int. Realty we have Real Estate professionals who have lived in the area for many years and know it well, who can advise any potential buyer of which areas would suit their particular requirements and budget.

What sort of property should I buy?

This is where our expertise can help to decide on the right property to suit each different buyer. We always try to find out which lifestyle you are looking for, if you are planning to spend only the holidays in Barcelona or the Costa Brava or if you are looking for a long term stay. Depending on these and other criteria they will indicate the areas which would best suit your criteria.

What is your budget?

Just one of the few points you should consider, but our Real Estate professionals will be pleased to guide you in the right direction and show you some suitable properties from which to choose.

What is the buying procedure?

Buying property in Barcelona or the Costa Brava is very straightforward, and when you buy with Barcelona & Costa Brava Sotheby´s International Realty you can rest assured your purchase will be handled professionally and correctly. Our experienced team deal with both buyer and seller when handling negotiations and help with any other questions.

There are three basic stages of the purchase:

1

Reservation Agreement & Deposit

Buyer and Seller sign a simple reservation agreement and the buyer pays a modest reservation deposit as a gesture of good faith. This confirms the agreement of buyer and seller, subject to the property searches and takes the property off the market, keeping it reserved by the seller for the buyer for an agreed period during which the lawyers will have prepared a Private or Option Contract.

2

Option Contract

When lawyers have confirmed that the legal position of the property is in order, the Option contract is drawn up and signed by both buyer and seller.

If all is well it is usual for 10% of the agreed purchase price to be paid by the buyer. This contract is binding on both parties and if the buyer withdraws he forfeits the deposit.

3

Completion

Completion of the purchase takes place at a notary where the deed of conveyance “Escritura Publica” is signed by both parties, the balance of the purchase price is paid and the buyer takes vacant possession of the unencumbered property. The Notary will then lodge the deed at the property registry to assure legal title.

What are the buying costs?

The buying costs depend on the agreed purchase price to cover all your buying fees and taxes, plus an additional fee if you are obtaining a mortgage. The costs are generally:

Transfer Tax

For property that is not new, the transfer tax in Catalonia (ITP) is now (Nov. 2013) 10% over the agreed selling price. There is no Transfer Tax for new properties which instead are subject to 10% VAT (IVA), plus 1.5% stamp duty of the agreed selling price. For plots, commercial premises or garages the VAT (IVA) is 21%.

Notary and Land Registry fees

Fixed by law on a sliding scale, around 0.5% to 1.5% of the purchase price.

Lawyers' fees

This depends heavily on the lawyer or law firm and it is difficult to give a general figure since it depends as well on the value of the property. Nevertheless, it should not be more than 1% of the purchase price and there are lawyers who work on a fixed and economical rate.

Mortgage fees

An arrangement fee of around 1% of the advance is typical. In addition mortgages are taxed, at around 1.5% of the advance.

On-going support

After the purchase, Barcelona & Costa Brava Sotheby´s International Realty will always be available for clients to offer any help we can. Usually your lawyer will arrange to change the utilities into your name together with the Town Hall taxes, such as the I.B.I (local community taxes) and the Basura (rubbish collection). Equally, if the property is within a community, there will be community fees to pay that vary according to each community. For advice on insurance, tax, banks, finance or indeed any aspect of living in this wonderful area we can introduce you to the best professionals who will be able to help and guide you.

Concurring Taxes

Being an owner of a property in Spain you are obliged to pay a local, annual property tax called IBI. The amount of this tax depends on the value of the property and, as well, where it is located since the different towns and cities apply different percentages.

Therefore, in general, it is not possible to give a concrete figure for it, but you can expect that the annual tax is less than 0.25% of the value of the property.

Additionally, a non-resident owner in Catalonia is obliged to pay two additional taxes

- IMPUESTO SOBRE EL PATRIMONIO -CATALUNYA-

(Tax on the property)

- RENTAS IMPUTADAS DE BIENES INMUEBLES URBANOS DE USO PROPIO

(Tax on own use properties)

Base for both taxes is the cadastral value of the property and there are different bands with different percentages. This means it is difficult to give a general figure, but you can expect both taxes together would rather represent an insignificant amount a year in relation to the purchasing price.

Income Tax for No-Residents

In the case that you decide to rent your property out in a professional way, you should bear in mind that you should pay a fixed 24.75% of income tax over the profit you generate with this activity.

Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office is independently Owned and Operated.

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