Costs associated with buying a Property in Barcelona
This Blog outlines the total costs for buying and owning property in Barcelona.
1. Additional Costs
The Buyer must pay an additional 11% to 15% of the property’s purchase price for extra costs and taxes. These costs are paid when the Buyer signs the public deed. They include:
- 10% Conveyance Tax (ITP). This is a 10% tax on the property’s purchase price. It’s paid to Catalonia. The % varies depending on the Spanish province where the property is located, in Catalonia its 10%. If you’re 32 or younger, earn less than 30k per year and meet other requirements, the tax can be reduced to 5%.
- Public Notary. A property deed is signed before a ‘Public Notary’. They charge from 1000€ to 2000€ per deed (these prices are regulated)
- Registry Fee. Deeds are registered with the government’s Land Registry Office or Registro. They charge from 600€ to 900€ per deed.
- Gestor. They pay the 10% tax, file the deed with the Registro and other related services. They charge from 400€ to 750€ per deed. (there is no obligation to use a gestor to liquidate taxes but strongly recommended since mistakes can be very costly)
- Payment method:
- Bank cheque. Depending on your bank around 300€ (at some banks if you contract the apartment insurance with them, they give you the cheque for free).
- Bank transfer via Bank of Spain (OMF) depending on your bank from 0,4% to 0,5% of the amount.
Here is an example. A flat that costs 500,000€ will entail about 52,800€ in extra costs as itemized below. These numbers might vary.
- 10% Tax: 50,000€
- Notary: 1,200€
- Registry: 800€
- Gestor: 500€
- Cheque: 300€
- Total: 52,800€
- Total Price of the Property: 552,800€
When purchasing “new construction” or as a company the taxes vary.
2. Buying property in with a mortgage
A mortgage requires a second tax and a second deed. As of Oct. 2019, these additional costs must be paid by the Buyer’s mortgage bank. But the bank may impose several other fees, like an assessment of the property, to grant the mortgage. These costs vary from bank to bank and from your relationship with them.
3. Annual Costs related to Owning Property
There are 3 costs associated to owning a property in Barcelona:
- City Property Tax (IBI).It’s app. 1.5% of the property’s assessed tax value. The assessed value is from 20% to 75% of the sale’s price. It depends on the date of the last assessment.
- Community Fees.This is for building maintenance and repairs. It varies depending on the several factors (whether there’s an elevator, portero, swimming pool, etc.). Est. 1200€ to 2,400€/year.
- Property Insurance.This depends on the property’s size and whether you insure the contents as well. Est. 350€/year. (this is only obligatory when you have a mortgage)
If you have any further questions don’t hesitate to call us or send us an email at info@toll-wohnen.es
