Fantastic you have made your decision and are ready to buy a home in Barcelona!
But what are the costs and taxes associated with your purchase? In this article we will be looking at those specifically associated with a purchase without a mortgage. It is important to distinguish between a home, a retail or office space, land and parkings. There are significant differences, but here we focus only on a the purchase of the home (1st or 2nd hand). In general it is advised to have an additional 10%-12% on top of the purchase price.
There a numerous costs that are the responsibility of the buyer and we will go through them one by one.
Taxes related with the home purchase
As a buyer should have a some extra money set aside to be able to pay for the taxes. The exact amount depends on the value of the property and if it is a second hand property or new built property.
First let's look at the biggest part of these costs, the taxes:
For second hand properties in Barcelona (in the autonomous community of Catalonia, to which Barcelona belongs) the tax is "impuesto sobre las Transmisiones Patrimoniales or in short ITP. The exact percentage depends on the autonomous community, and varies between 6% and 10%, however in Catalonia it is currently (2022) 10%. This is due within 30 days post purchase.
VAT & AJD
When you purchase an apartment in newly built building and you are the first person using the home, you pay "impuesto de valor añadido" or in Short IVA, instead of ITP. The percentage IVA for homes in 2022 is however the same; 10% (except for the Canary Islands, where the IGIC is 6,5%).
When buying a newly built apartment, the buyer also needs to pay "actos jurídicos documentados or in short AJD of 1,5% in Catalonia. (differs per autonomous region)
Reduced rates are possible, depending on specific personal situations, age, income, discapacity, single parent family, large families, subsidized housing among some of the exceptions.
Notary: The cost of the notary is regulated statewide since 1989 and are standardized depending on the services. In case of buying a property, the final cost will depend on the cost of the property, number of pages of the deed, additional annexes such as parkings and storage, number of people buying. But in general this will be between €600-€900. The buyer can choose to go the notary of their choice.
Property registry: Once the deed has been signed at the notary, it needs to be inscribed in the property registry. These costs are also regulated, but will be around €400-€650.
Gestoria: This is the only cost that is optional for the buyer, but we strongly recommend you use a professional to this administrative process for you, instead of attempting to do it yourself. The gestor (administrator) will make sure the taxes are paid on time and other paperwork needed is done accordingly.The costs of these services are not regulated and can vary among "gestorias". This could cost between €300 - €600.
When purchasing with a mortgage there are some additional costs to take into account, however we will go into this in a new blog post.