The TOTAL Cost of Buying Property in Barcelona

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.

Please note:

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]

3 Comments on “The TOTAL Cost of Buying Property in Barcelona”

  1. Is BCN in general considered a good rental market for investors? Are things expected to improve? Why are there so many British people purchasing property in BCN at this moment?

    Thank you!

    1. Is BCN in general considered a good rental market for investors? It depends. If you’re a Spanish resident it’s better. They pay a tax of app 20% of the net rental income and is reported on their annual Spanish income tax form. Spanish non-residents pay a tax of 24% of the gross rental income declared and paid every three months. So it’s for them to earn money. You have to buy cheap and fix the property up, then put it out for rent. Rents are going up in BCN as demand for housing is very strong.
      Are things expected to improve? Because of high demand and limited supply, I think housing and rental prices will continue to increase.
      Why are there so many British people purchasing property in BCN at this moment? Demand from UK citizens is constant in BCN for several reasons:
      1) Brexit. Many people from the UK want to gain Spanish residency before Brexit in case the new Brexit rules make it harder, or impossible, to do so. No one knows what might happen.
      2) Climate. BCN has a sunny climate, it’s near the sea, easy to get around, etc.
      I think it’s a good time to buy as prices will continue their upward trend unless there is a major international crisis such as in 2008.

  2. Pingback: How to Buy Property in Barcelona: A Guide for Foreigners - Spain Advisors

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