Buying a new home overseas is not only a great way to broaden your holiday horizons; it also protects your hard-earned capital. And when it comes to choosing a destination that is rich in class and culture, Barcelona is definitely one of the most popular options.
Barcelona offers a range of high-quality properties and well-communicated neighbourhoods to choose from. However, purchasing property in Barcelona, whether to use as residence or investment, requires an understanding of certain factors to make the entire process proceed smoothly – which is why the assistance of an experienced professional is advised to help you make the best decisions.
What are the relevant stages of purchasing property in Spain?
STAGE 1: A Holding Deposit
After finding a property that you would like to buy, the first step is to enter into negotiations with the owner regarding the price. This is a non-binding process, and appropriate solicitors can be recommended to make the transaction more understandable. After your offer has been accepted, the next step is to put down a reserve deposit, which is normally subject to legal checks.
STAGE 2: The Private Contract – Arras
This is a simple agreement between the buyer and seller, containing all the relevant details such as property description, purchase price and date of completion. Prior to entering this contract, a check on the planning status, the title and the property charges will be carried out.
At this stage, the buyer pays a deposit, normally into the seller’s bank account, of approximately 10% of the agreed purchase price (this amount may vary).
A clause is included in the private contract should either party wish to withdraw from the sale; however, the buyer and seller may choose to change this clause if desired.
STAGE 3: Completion of Public Deed
Prior to completion, non-Spanish buyers will require a Spanish tax number (or NIE) and a bank account in Spain. On the completion date, the balance of the purchase price is paid by the buyer.
The seller and buyer then sign the Public Deed, which is equivalent to the title deeds of the property.
What are the costs involved?
VAT and Stamp Duty costs (applicable for residential properties that have never previously been occupied) apply when buying a New Build Property from a developer or bank. VAT is currently 10% on the purchase price for residential properties (villas, apartments, etc.) and 21% for commercial properties and plots of land. Stamp Duty is a percentage of the purchase price and varies depending on the autonomous region where the property is bought; however, the base rate is 1% (1,50% in Catalonia).
If a resale property that has been used before is purchased from a private individual, Transfer Tax (ITP) applies, which differs between regions (usually from 6 – 11%).
Although it is not obligatory by law to seek legal assistance for property purchase, it is highly recommend doing so. Even though it is often a fixed fee, the total sum can vary due to the amount of work required to be done by the solicitor.
Bear in mind that general running costs such as local taxes, community fees and non-resident income tax should also be factored in, which will be explained in-depth by our team of experts.
Why use a professional?
Factors such as commission rates and taxes, negotiations and contracts, as well as a broad knowledge of the housing market and prices, are fundamentally important ones that will certainly affect your property selection. And considering the fact that the property sector’s prices have started increasing considerably, the perfect time to purchase your Barcelona home is right now.
That is where Sivoris comes in. As a professional team with day-to-day experience in investments, property selection and developing property-related projects, amongst others, our mission is to assess each client’s needs and help them obtain the best results possible. This includes:
- sorting through the best neighbourhoods to choose the most appropriate option that fits our client’s requirements;
- calculating properties’ values and factoring in potential renovations to transform any building into a luxurious home (thus increasing profitability);
- negotiating the best property investment;
- joining forces with banks or building societies to manage mortgage loans;
- correctly advising on financial and legal calculations, as these factors can make up an additional 12 – 13% of the property price.
The Sivoris promise
Our prime purpose at Sivoris is to become your partner and ally during the searching and buying stages in your quest for a Barcelona property, and to compact everything into a time length of approximately one month. Our knowledge of the local market and city neighbourhoods, our experience in high-class property selection, as well as our powerful network of contacts and associates, significantly broadens your options in the search for the perfect house, apartment, flat, commercial building and other real estate options.
To ensure that your requirements are met, each of the selected properties presented to you will be subject to an exhaustive analysis and comparison with other similar choices on the market. Similarly, should you be searching for an investment property, our team will factor in the relevant pros and cons, as well as profitability ratios of each option to help you make the right decision.
Our portfolio of international clients has ensured that we are well-versed in not only English and Spanish, but also Arabic and Russian, ensuring crystal-clear communication at all stages.
Allow the Sivoris team to simplify your quest for your dream home in Barcelona.