Buyers Guide

Buying a property in Barcelona can be an exciting yet complex process, especially for non-residents unfamiliar with Spanish regulations. Whether you are purchasing a home or investing in real estate, understanding the steps involved will help you navigate the process smoothly and avoid potential pitfalls. Here’s a detailed guide to help you through each stage of buying a property in Barcelona.

1. Research and Budgeting

Before starting your property search, define your needs and financial capabilities. Decide on the type of property, preferred location, size, and features. Establish a budget that includes additional costs, such as taxes, notary fees, and legal expenses, which typically amount to 10–12% of the property price.

If you require financing, obtaining pre-approval for a mortgage is crucial. Spanish banks generally offer loans of up to 70–80% of the property’s value for non-residents, so you may need to cover the rest from your own savings.

2. Making an Offer

Once you find the ideal property, it’s time to make an offer. If the seller accepts your offer, you will sign a reservation agreement ("Reserva") and pay a deposit, typically between €3,000 and €5,000. This deposit secures the property and takes it off the market. Be aware that this amount is non-refundable if you decide to back out, though it will be refunded if legal issues prevent the sale.

3. Signing the "Arras" Contract

The next step is to sign a private pre-sale agreement known as the "Contrato de Arras." This document outlines the terms of the sale and includes a 10% deposit of the agreed purchase price and normally takes place 10-15 days after the reservation.

The "Arras" contract obligates both parties to complete the transaction. If the buyer withdraws, the deposit is forfeited. Conversely, if the seller pulls out, they must return double the deposit. The timeframe for finalizing the sale is typically one to three months.

4. Finalizing Financing

If you’re financing the purchase through a mortgage, this is the stage to finalize the process. Provide your bank with all necessary documents, including proof of income and tax returns. The bank will also conduct a valuation of the property to confirm its market value and determine your loan eligibility.

5. Signing the Title Deed ("Escritura")

When the purchase is ready to close, both parties will meet at a notary’s office to sign the title deed. At this point, the buyer pays the remaining balance of the purchase price, and ownership of the property is officially transferred. The notary ensures that all legal formalities are completed, and you receive the keys to your new property.

6. Paying Taxes and Fees

Several additional costs need to be settled after signing the deed:

  • Property Transfer Tax (ITP): 10% of the purchase price for resale properties.

  • Notary and Land Registry fees: Approximately 1–2% of the property price.

  • Legal and administrative fees: Include the costs for your lawyer and gestor (administrative consultant).

7. Registering the Property

Your lawyer will handle the registration of the property in your name with the Land Registry. This step ensures that the property is officially recognized as yours under Spanish law.

8. Post-Purchase Responsibilities

Once the property is yours, there are a few additional tasks to complete. Transfer or set up contracts for utilities such as electricity, water, and internet. If the property is part of a community (e.g., an apartment building), start paying the monthly community fees. Lastly, remember to budget for the annual property tax, known as IBI.

Important Considerations for Non-Residents

Foreign buyers must obtain a NIE (Foreigner Identification Number) to purchase property in Spain. If you’re buying in a foreign currency, factor in exchange rate costs.