- June 18, 2024
Can foreigners buy a property in Spain? Tips you should know
Buying a property in Barcelona as foreigner might sound like a challenge for some people, but it is actually a great opportunity for investment and high quality of life. The vibrant capital of Catalonia, Spain, offers an enticing real estate market for both locals and foreigners. Its rich cultural heritage, stunning architecture, and Mediterranean charm make it an attractive destination for property investments.
Below this article, we show you how to buy a property in Spain as a foreigner, aspects to take into account and the benefits of buying a luxury apartment in Barcelona.
Things to keep in mind before buying a Property in Barcelona as a foreigner
1. Understand the local market
Before delving into the Barcelona real estate market, it is crucial to familiarize yourself with the local dynamics. Gain an understanding of the city’s different neighbourhoods, property types, and price ranges. Research:
- Market trends
- Property appreciation rates
- Legal restrictions on foreign ownership
Finding a reliable property developer in Barcelona can provide invaluable insights and guidance throughout the buying process.
2. Determine your budget and financing options
Establishing a realistic budget is crucial when buying a luxury apartment in Barcelona. Consider all costs involved, such as stamp tax, property tax, notary fees, registration fees, and consider fluctuations in currency exchange rates, as they can affect or benefit the final purchase price.
By assessing your financial capacity upfront, you can avoid any surprises and make an informed decision.
Foreigners can obtain financing to purchase property in Barcelona, although the availability and conditions may differ from those for Spanish citizens. It is advisable to approach several banks to compare mortgage offers and determine the best financing option for your needs. Compared to other European countries, Spain is an incredibly attractive destination if you’re looking to buy a luxury home on a slightly tighter budget.
3. Get an identification number
Although it is not necessary to be a resident in the country to buy a property, it is not possible to buy a house in Spain without a NIE, therefore, foreigners must obtain an identification number, regardless of their nationality.
This number is an indispensable requirement to carry out any kind of legal procedure in the country, such as opening a bank account, paying taxes or buying a property.
Now, you may be wondering: can you buy a house with a passport? The answer is no. As we commented, it is essential to apply for a foreigner’s identity number (NIE), which will serve to identify you in Spain.
4. Golden Visa, an opportunity for foreigners
The Golden Visa offered foreigners the possibility of obtaining a residence permit in Spain by purchasing a house of at least 500,000 euros.
The Spanish government will stop issuing residence visas for real estate investment in 2024, in order to ease citizens´ access to housing
But, this is not the only way to get a visa. There are other ways to get a residence and work visa for interested investors. How can you get one?
- 1 million euros in a Spanish bank deposit.
- 1 million euros in shares or participations in Spanish capital companies with a real business activity.
- 1 million euros in financial products issued by Spanish entities
- 2 million euros in Spanish public debt securities.
- Undertaking a business project in Spain of general interest
5. Get informed about the pros and cons of the neighbourhood you are considering investing in
Barcelona, Spain, offers a variety of neighbourhoods, each with its unique ambiance and property characteristics. Consider your lifestyle preferences, proximity to amenities, transportation links, and potential for rental income when choosing a location.
The most popular neighborhoods by international buyers in Barcelona, for its security, strategic location and services, are:
- Eixample: discover our developments of Girona 34, Girona 2, Casp 33A and Casp 33B, luxury apartments in Barcelona that will not leave you indifferent.
- Poblenou: if you are looking for a real estate opportunity in Barcelona, you cannot miss the latest luxury properties in Poblenou. Take a look at the rehabilitation of these emblematic buildings of the industrial Barcelona of the 19th century, declared of national interest and that can now be your home. Discover the Can Ricart loft development.
- Sarrià – Sant Gervasi: if you are looking for a quiet and privileged residential enclave, do not hesitate and discover the Homer 27 residential development, a modernist estate built in 1890 that fuses tradition and avant-garde architecture. It is located in the Putxet neighborhood, next to the Turó del Putxet, a stone’s throw from all services and stores, very well connected to the rest of the city of Barcelona.
6. Make a list of the desirable features of the property
Write down the essential criteria that the property must fulfill and are non-negotiable and another one that would enhance the property but are not essential. For instance:
Essential Requirements
- An elevator
- A specific number of bedrooms or bathrooms
- Proximity to school or work
- Proximity to public transportation
- Located in a particular neighbourhood, etc.
Desirable Features
- A terrace or patio (large outdoor spaces are rare and often come at a higher cost)
- Parking availability
- Proximity to the beach
- Views, building facilities and communal areas
Buying a property in a heritage building of Barcelona
If you plan to invest in a property with renovation potential, familiarize yourself with the local building regulations and obtain any necessary permits. Barcelona has specific rules to protect its architectural heritage, and alterations may require approval from the local authorities, a reason to be more convenient to invest in a new-build property in a fully restored building.
Some of the homes are located in Modernist charming constructions such as Girona 34 or an emblematic house listed as a cultural heritage of Barcelona, like Casa Bures.
Benefits of investing in properties in Barcelona as a foreigner
Buying a luxury house in Barcelona as a foreigner can be a rewarding investment, allowing you to enjoy the city’s vibrant lifestyle and potentially generate rental income.
The cost of living in Spain is significantly lower than in other world-class capitals, offering a great quality of life for less money. With careful planning, thorough research, and the right professionals by your side, such as a qualified property developer, investing in a property in Spain is a great alternative.
By understanding the local market, seeking legal assistance, establishing a budget, and conducting due diligence, you can navigate the Barcelona real estate market successfully and secure your dream property in this enchanting city.
FAQs
What are the additional fees when buying a new build property in Barcelona?
- VAT, corresponding to 10% of the cost of the property
- AJD (Actos Jurídicos Documentados) or Stamp Tax, which is 1,5% for properties in Barcelona
- Notary fee
- Registration fee
What’s the benefit in buying a new build property instead a second-hand home?
In a new property, the entire building has been completely renovated, not only the homes. All the facilities, pipes, elevators, windows, among others are new, and the properties fulfill the current regulations in terms of energy efficiency and all technical specifications.
Also, the neighbours in a new build property tend to be like-minded individuals in terms of purchasing power, age or interests.
How long is the process to buy a property in Barcelona?
The purchase process of a property in Spain is very relative and depends a lot on each buyer. Aspects like obtaining the NIE or getting the funds could extend the terms.
On average, once you find your ideal property, the purchase process may take 2 to 3 months. However, if there’s no need to go through a mortgage application, and you already have a NIE, you could sign the house deed in just one week.
When is a good moment to buy property in Spain?
Purchasing a property in Spain in 2023 can be a good alternative to investment because there are still good prices and properties in the real estate offer.
The return on investment of properties in the Spanish market is positive.