Can Foreign Non-residents Buy Property in Barcelona? A Guide for Buyers
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Are you considering buying property in Barcelona? Whether you're a first-time home buyer or a seasoned real estate investor, this Spanish city offers an abundance of attractions and potential.
But there's one burning question on the minds of many visitors as they wander the streets lined with charming restaurants, stunning architecture and a vibrant nightlife: As a foreign non-resident of Spain, can I buy a property in Barcelona?
Can Foreigners Buy Property in Barcelona?
Yes! While various guidelines and procedures do apply for foreigners purchasing real estate in this amazing Spanish city, the professionals at Mortgage Direct can help guide you through the process.
Foreigners can buy both commercial and residential properties in Barcelona. Foreign non-residents must have the correct set of documents, and have at least 30% of the purchase price (plus an estimated 11-13% to cover taxes and other expenses) to access bank loans.
If the property is being bought exclusively for commercial purposes, without the intention to use it as a residence, a minimum of 40% of the purchase price would be required, plus an estimated 11-13% to cover taxes and other expenses.
So, why should buying property in Barcelona be on your bucket list?
Why Buy Property in Barcelona?
Barcelona is one of the most popular cities in Europe for visitors and residents alike, and it's quickly becoming a hotspot for property investors also. With the Brits currently hitting the top of the polls as the highest percentage of foreign home buyers in Spain, it’s not surprising that there is so much demand to purchase property in this captivating city.
- Location: Situated between the magnificent Pyrenees Mountains and the Mediterranean Sea, Barcelona is an ideal setting for urbanites who still want to enjoy nature.
- Investment: Conditions in the city are perfect for investment. Due to demand for both long and short-term accommodation in the city, rental yields are high and among the most secure throughout Spain. Furthermore, there are residency permit laws in place which allow for foreign buyers to achieve Spanish residency. For example, the “golden visa” allows foreign investors to acquire permanent residency through real estate investments of €500,000 or more.
- Growing economy: With excellent infrastructure and plenty of job opportunities, Barcelona provides everything you need when it comes to settling down.
With relative affordability (especially when compared with many other top European cities), low crime rate and beautiful views, purchasing property in Barcelona can be an attractive investment that combines both wealth-generating potential and real lifestyle benefits. Plus, with a variety of high quality international schools available, there’s no need to worry about providing for your children’s education needs in the event you decide to permanently relocate.
What Should Foreigners Consider before Buying Property in Barcelona?
Before making any purchase, it is important to consider the cost of the property as well as any additional taxes (set at 10% of the value of the property throughout Catalunya) and additional fees that may apply. It is also important to be aware of the legal requirements and restrictions pertaining to buying property.
Documents
First and foremost, you must have the correct identification documents—this includes both a passport (or ID card) issued by your home country and a número de identidad de extranjero (NIE). Prospective buyers must obtain a NIE and ensure that it is correctly registered at the tax office before making a purchase. Without it, a buyer is unable to sign the property deeds and mortgage.
Your NIE can be obtained remotely using power of attorney from a qualified, licensed Spanish lawyer. It can also be obtained physically in Spain, or at a Spanish consulate. Through their trusted legal contacts, the professionals at Mortgage Direct can help guide you through this process.
Down Payment
As a foreign non-resident of Spain purchasing a holiday home, you’ll also need at least 30% of the total cost of the property as a down payment, alongside an additional 11-13% to cover taxes and other fees, in order to be granted a mortgage from a Spanish bank. If the property is being purchased solely for investment purposes, without the intention to use it as a residence, a minimum of 40% of the purchase price would be needed, plus an estimated 11-13% to cover taxes and other expenses.
In addition, all real estate purchases must go through a closed national registry that is only accessible to registered professionals. Foreign buyers should also make themselves aware of local regulations regarding ownership and occupancy, such as restrictions on subletting and holiday lettings.
Taxation in Spain
When making a purchase, it is important for foreigners to remember that all real estate transactions are subject to taxation in Spain. This includes VAT (IVA) and stamp duty (AJD). It is also important to note that capital gains tax may also apply if the property is sold at a later date.
Help Available for Foreigners Buying in Barcelona
There are numerous resources available for foreigners looking to buy property in Barcelona, ranging from government agencies providing advice and support, to international mortgage brokers such as Mortgage Direct who specialize in helping foreign buyers navigate the process.
While there are some additional hurdles that foreigners must navigate when buying property, a foreign buyer can ensure that their purchase goes through smoothly with minimum disruption by understanding the legal requirements and seeking professional advice where needed.
Are You Ready to Buy Property in Barcelona?
From its vibrant culture to its beautiful architecture and stunning beaches, Barcelona offers a unique combination of attractions for visitors from around the world. If you’ve been wanting the luxury of owning your own “place in the sun” in Spain and you’re not sure where to buy, Barcelona should certainly be in contention!
Since 2006, the experts at Mortgage Direct have been using their expertise to help simplify the complex Spanish mortgage and real estate buying process. The bi-lingual team of qualified Mortgage Direct advisers provides fantastic personalized advice on international property investments with exclusive mortgage conditions—making sure your money is safe as well as profitable!
If you have any questions about purchasing property in Barcelona or would like to discuss a tailor-made solution for yourself, feel free to get in touch today, will@mortgagedirectsl.com.
Image courtesy of Mortgage Direct.
Sponsored by Mortgage Direct.
Disclaimer: The information provided on this website does not and is not intended to constitute legal advice; instead, all information available on this site is for general informational purposes only. Laws are subject to change and do so regularly. While the Barcelona Metropolitan endeavors to ensure that the content is accurate and up-to-date, users should seek appropriate legal advice before taking or refraining from taking any action based on the content of the website or otherwise.
