What is the Total Cost for Property in Barcelona?
This post outlines the Buyer’s TOTAL COST for buying and owning property in Barcelona. Note: As of Oct. 2019, the mortgage bank must pay the closing costs incurred by the mortgage.
A. Property’s Extra Costs
The Buyer must pay an additional 12% to 14% of the property’s purchase price. These costs are due when you sign the deed. They include:
1) 10% Conveyance Tax (ITP). This is 10% of the property’s purchase price. It’s paid to Catalonia. If you’re 32 or younger and earn less than 30k per year it might be reduced to 5%. This tax varies according to the Spanish province where the property is located.
2) Public Notary. Property deeds are signed before a ‘Public Notary’ who confirms the deed’s validity. They charge from 1000€ to 2000€.
3) Registry Fee. Deeds are registered with the government’s Land Registry Office or Registro. They charge from 400-750€ per deed.
4) Gestor. They pay the 10% tax, file the deed with the Registro and related services. They charge from 400-750€ per deed.
Example. A flat that costs 300,000€ will entail about 32,200€ in extra costs as itemized below. These numbers are estimates.
- 10% Tax: 30,000€
- Notary: 1,200€
- Registry: 500€
- Gestor: 500€
- Total: 32,200€
- Total Price of the Property: 332,200€
Buying with a Mortgage
A mortgage requires a second tax and a second deed. However, as of Oct. 2019, the mortgage bank must pay the tax and the extra costs associated with the mortgage deed. The buyer must pay for an assessment of the property and the bank might charge an opening fee and other costs.
Costs related to Owning Property
This is if the Buyer lives in the property.
1) City Property Tax (IBI). It’s 1.5% of the property’s ‘tax’ value. It generally ranges from 30 to 60% of the sales price depending on when the last assessment was done.
2) Property Insurance. This depends on the propery’s size and if you insure the contents as well. Est. 300€/year.
3) Community Fees. This is for the building manager who maintains and manages repairs to the building’s structure and common areas. It varies depending on the several factors (whether there’s an elevator, portero, swimming pool, etc.). Est. 1000€ to 2,000€/year.
1) The above numbers are estimates and your true costs may vary.
2) If you buy in the name of a company (SL), or buy a ‘new construction’, the costs may vary from those above.
Thank you for reading and we wish you the best in your property search in the Barcelona area. Feel free to email or call for comments or questions. Mark Carr at +34 664 665 365 or [email protected]