Buying in Barcelona

Due to the high demand for newly built Spanish property, most buyers purchase properties ‘off plan’ from Spanish property developers. This means that the buyer chooses a property based on the plans and specification, and then choose which home property they want within a particular development.

Typically, buyers of newly built properties make regular instalments during key stages of the development (as opposed to paying for the property when it is complete), and an initial deposit of 5% to 10% of the purchase price. The initial deposit and regular instalments vary from one Property Developer to another. If you are buying a new property you do not own the property until the work is completed and you are in receipt of the relevant certificates.

Note: If you have to make regular stage payments to the Spanish property developer you should ensure that you receive bank guaranties for each payment. These bank guarantees protect you in the unlikely event that the Property Developer has financial difficulties before the property is transferred to your name.

Escritura is the final signing of the title deeds in the buying process. All parties or their designated representatives go to the notary: the public official appointed by the Spanish Government to witness the signing of all legal documents. At this point you pay the balance of the purchase price and all fees and taxes, including 8% of the purchase price on new properties, or the declared value on re-sales. All transfer taxes and fees are paid to the tax offices. 'Plus valia', which is a tax on any increase in the value of the land, is also levied in some areas.
Next, the notary will register the transfer of ownership at the land registry. This registration may take a while; you can ask for a copy of the records from your notary, it's called ‘Copia Simple'.

Within five business days after signing the reservation, you will need to sign a preliminary contract called an "Arras". At this time you will need to pay a minimum of 10% of the purchase price. This legally binding contract clearly states the date of completion. If you change your mind after this point, this money is non-refundable. However, if the owner decides to back out of the sale, they must pay you, the buyer, double the amount paid at the signing of the Arras. Within one month of signing the Arras contract, you will go to the notary to sign the Escritura (explained in the ‘Escritura’ section).

When you find a property you would like to buy, the first step is to sign a reservation and place a deposit so that the property is not sold to another buyer. A standard deposit is around 3.000 Euros, but is an amount mutually agreed by the buyer and the owner and so can vary. This is not refundable if the buyer changes their mind.
If you would like to make an offer that is lower than the asking price, your Casamona agent will act as an intermediary during negotiations.

Note: All prices listed are negotiable; if both sides agree to a fair price, then a reservation and a deposit can then be agreed based on this price.