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 (a house, flat or apartment) in Barcelona, including taxes and fees. It’s divided into three sections:

A. The TOTAL COST when paying in Cash

B. The TOTAL COST when paying with a Mortgage

C. The COSTS related to Owning Property 

A. Property’s Total Cost: Paying Cash

The Buyer must pay an additional 12% (estimate) of the property’s purchase price. These costs are due when you sign the deed. They include:

1) 10% Sales Tax (ITP). This is 10% of the property’s purchase price paid to Barcelona’s province, Catalonia. If you’re 32 or younger, and meet other requirements, it’s 5%. This tax varies according to the province where the property is located.

2) Public Notary Fee. Property deeds are signed before a ‘Public Notary’ who confirms the deed’s validity. They charge from 800 to 1500€ per deed.

3) Registry Fee. Deeds are registered with the government’s Land Registry Office or Registro. They charge from 400-600€ per deed.

4) Gestor. They file the deed with the Registro and provide other services. They charge from 300-500€ per deed.

Example. A flat that costs 300,000€ will entail about 32,000€ in extra costs as itemized below. These numbers are estimates.

  • 10% Tax: 30,000€
  • Notary: 1,000€
  • Registry: 500€
  • Gestor: 500€
  • Total: 32,000€
  • Total Price of the Property: 332,000€

B. Property’s Total Cost: Paying with a Mortgage

The Buyer must pay an additional 15% (estimate) of the property’s purchase price. In addition to the costs above, a mortgage requires a second tax and a second deed: 

1) A 1.5% tax on the mortgage amount, plus five years of interest, plus bank fees. Your bank will know the exact amount. In my experence it ranges from 3,000 to 7,000€.

2) An assessment of the property required by the bank: 500€

3) Notary Fee: 800-1200€

4) Registry Fee: 400-600€

5) Gestor’s Fee: 300-500€

Example. A 210,000€ mortgage for a 300,000€ flat will entail the costs below. These numbers are estimates.

  • Mortage Tax. The loan amount (210,000€) plus the first five years of interest and bank fees (est. 170,000€): 380,000 x .015 = 5,700€
  • Assessment: 500€
  • Notary: 1,000€
  • Registry: 500€
  • Gestor: 500€
  • Total: 8,200€
  • Total Extra Costs: 32,000 + 8,200 = 40,200€
  • Total Price of the Property: 340,200€

C. The Costs related to Owning Property

The Buyer must pay the following costs for the property and mortgage. They’re paid quarterly or annually.

1) Local Property Tax (IBI). It’s 1.5% of the property’s appraised, or ‘tax’, value and is paid to the city. Tax values generally range from 30 to 60% of the sales price, although it depends 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. 250€/year.

3) Community Fees. This is to maintain and make repairs to the building and common areas. This varies depending on the building and the number of flats in the building. Est. 800€/year.

4) Life Insurance. Mortgage banks require a life insurance policy for the duration of the loan. The cost varies based on several factors.

Please note:

1) The above numbers are intended only as rough estimates. The actual costs may vary.

2) If you buy through a company, 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. Pingback: How to Buy Property in Barcelona: A Guide for Foreigners - Spain Advisors

  2. 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.

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