Are you interested in buying a beautiful property in Spain? The stunning Catalonia region is famous for its breathtaking landscapes, vibrant culture, and warm climate. Imagine waking up to stunning Mediterranean views, enjoying delicious local cuisine, and experiencing a vibrant culture every day.
However, buying a property as a foreigner can seem daunting. Through years of experience, The American Design Studio has built a network of english-speaking professionals (lawyers, architects, advisors, etc.) that are ready to accompany you through all of the stages of the process. Whether you’re considering a holiday home, an investment property, or are planning to move to Spain permanently, this guide will give you a helpful insight into the buying process.
Why Choose Catalonia?
Catalonia is a region in northeastern Spain with a rich history, diverse culture, and some of the country's most iconic landmarks, such as the Sagrada Familia and the stunning beaches of Costa Brava. The region offers a mix of bustling cities like Barcelona and Girona, charming coastal towns like Sitges, and serene countryside villages like Tivissa. Establishing my design studio in Sitges, a coastal town 40 min away from Barcelona, has been a dream come true and let me tell you why.
The Benefits of Living in Spain
It is important to do some research on the specific place you want to buy a property in. If you’re planning to move to Spain for example, learning about the quality of education and financial help might e of interest too. Connecting with the local expat community on online forums and Facebook groups, where people can answer all your questions, is a great way to find out more.
What You Need to Know Before Buying a Property in Catalonia
Understanding the Real Estate Market
The prices of property in Catalonia vary greatly depending on the location. Here's a snapshot:
Another option you should consider is buying a plot of land for cheap and building your own dream home!
What Documents Do You Need to Buy a Property in Spain?
As a foreigner, there are specific documents you’ll need to gather before you can buy property in Spain:
NIE (Número de Identificación de Extranjero): This is a tax identification number for foreigners, essential for any financial transactions in Spain.
Passport or ID Card: Proof of identity is required.
Proof of Financial Means: Bank statements or proof of income to demonstrate you can afford the property.
Spanish Bank Account: Necessary for financial transactions related to the property purchase.
Purchase Contract: Signed agreement between you and the seller.
The Buying Process Explained
Step 1: Finding the Right Property
Working with a reputable real estate agent can help you find a property that suits your needs and budget. They can provide valuable insights into the local market and help you navigate the buying process.
Check out this guide by EasyFX: The Pitfalls of Buying Property in Spain | Avoid Common Mistakes
Step 2: Making an Offer
Once you find a property you like, you can make an offer. This is usually done through your real estate agent. If the offer is accepted, you will sign a preliminary contract (Contrato de Arras) and pay a deposit, typically around 10% of the purchase price.
Step 3: Legal Checks and Final Contract
It's crucial to have a lawyer conduct legal checks to ensure the property has no outstanding debts or legal issues. After the checks, you will sign the final purchase contract (Escritura de Compraventa) in the presence of a notary.
Step 4: Financial Considerations - Paying Taxes and Fees
When buying property in Spain, be aware of these additional costs:
Property Tax: 10% of the purchase price to be paid at purchase.
Notary Fees
Legal Fees
Property Registration Fee
Let The American Design Studio help with all the details.
Financing Your Purchase
Foreigners can obtain mortgages in Spain, but the terms may vary. Typically, Spanish banks will finance up to 80% of the property’s value for non-residents. Ensure you have a solid financial plan and consult with a mortgage advisor.
Moving to Spain
Visa and Residency
If you're planning to move to Spain permanently, you'll need to apply for the appropriate visa. Long-term national visas (visado nacional) – are required for non-EU/EEA citizens who want to stay longer than 90 days in Spain. The most common options are:
Non-Lucrative Visa: For those who can support themselves financially without working in Spain.
Business visa: If you are willing to start a business in the country and obtain the Spanish residency while doing so.
Work permit as an employee of a Spanish company.
Student visa: This type of residency was created for those who are interested in studying or conducting research in Spain.
Family member of an EU citizen visa: If, luckily you are the relative of a European Union citizen, then getting a residence and work authorization in Spain is easier.
This article by EasyFX might be of interest: Why has Spain abolished the Golden Visa?
Settling In
Once you have your visa, you can start the process of becoming a resident. This involves registering with the local town hall (Empadronamiento) and getting a Spanish residency card (TIE).
Buy a Property to Rent
If you're considering buying a property to rent out, Catalonia offers great opportunities. The region attracts tourists year-round, and there's a strong demand for rental properties, especially in tourist hotspots like Barcelona and Costa Brava.
Here's a helpful article by our partner EasyFX - Buying A Property in Spain to Rent: Expert Tips
Rental Yields
The rental market in Catalonia can be lucrative, with attractive rental yields, especially in popular areas. This makes it a smart investment choice if you're looking to generate passive income.
Tips for a Smooth Buying Process
Research: Understand the market and the area you're interested in.
Legal Advice: Always hire a lawyer to guide you through the legal aspects.
Budget: Account for all costs, including taxes and fees.
If possible, visit the property in person before making a decision.
Coming from the UK? This article might be of interest
Ready to Buy a Property in Catalonia?
It can be a rewarding investment and a gateway to an incredible lifestyle. Whether you're looking to move to Spain, buy a holiday home, or invest in a rental property, Catalonia has something for everyone. For expert assistance and personalized advice, contact The American Design Studio. We're here to help you every step of the way, ensuring your dream of owning a property in Catalonia becomes a reality.
Best Regards,
Katherine Robbins
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