Budgeting to buy in Barcelona from abroad: amounts, dates, currency

A budget for buying from abroad is a schedule in which every amount has a date, a currency and a source, not a single figure of "price plus taxes". The main item on top of the price is tax: on the resale market in Catalonia, ITP (the resale transfer tax) of 10% on the part of the price up to 600,000 € (ATC). A mortgage rarely covers more than 80% of the valuation: according to the Banco de España, banks usually do not lend more than that share (Banco de España), and for a non-resident the share is sometimes lower.

What the basic budget is made of

The basic scheme is the same for a resident and a non-resident. It includes:

• the price of the flat after valuation and negotiation, not the listing price;
• the purchase tax: ITP on resale, IVA (VAT) of 10% and AJD (stamp duty) on a new-build from a developer;
• notary, registration, gestoría (the administrative agency that handles the paperwork);
• mortgage costs, if there is a mortgage, including the tasación (the bank valuation);
• a reserve for renovation, furniture and the unexpected.

The higher ITP rate of 20% applies to a buyer with the status of gran tenedor (a large holder of residential property) and to the purchase of a whole residential building; there are reduced rates for certain categories. Whether they apply is for an asesor fiscal (tax adviser) to decide. How to determine a comfortable sum before the search is covered in the article on a comfortable budget.

What is added when the buyer lives abroad

A non-resident pays for distance in money and time. These lines are worth separating out in the budget.

Exchange rate and transfer. If the savings are not in euros, between agreeing the price and the day at the notary the rate can move for weeks in either direction. Ask the bank in advance about the fee, the rate applied, the limits on a single transfer and the time to credit. How to organise the transfer itself and assess the exchange-rate risk is described in the article on international transfers.

Source of funds. A Spanish bank and the notary usually ask you to show where the money comes from: statements, a contract for the sale of other property, documents on an inheritance or income. They are collected before the transfer. You may not pay 1,000 € or more in cash if one of the parties acts as a businessperson or professional (Agencia Tributaria).

NIE, account, power of attorney and document translations. Without an NIE (the foreigner's tax identification number) the deal cannot be completed, and a Spanish account simplifies payments. If the buyer will not attend the signing, a notarial power of attorney is needed, and for foreign documents sworn translations and an apostille.

What a non-resident's mortgage looks like

A non-resident needs more of their own money and the approval takes longer. The Banco de España writes that banks in general consider a debt burden of no more than 30–35% of income acceptable and check the borrower's debts through CIRBE (the Bank of Spain's credit register). Documents from another country and income in another currency lengthen the check, so the deadline for the financing condition in the arras (the reservation deposit contract) is set with a margin. The specifics of a loan for a non-resident are covered in the article on a mortgage for a non-resident.

How to lay out the money by date: a worked calculation

Worked example, not a forecast. A resale flat for 500,000 €, a non-resident buyer, a loan assumed at 60% of the price, savings in another currency. The notary, registration and gestoría amounts are assumptions and are pinned down from the quote.

The own money needed without renovation is 5,000 + 45,000 + 150,000 + 50,000 + 8,000 = 258,000 €. If during the deal the rate moves 5% against the buyer, about 12,900 € more will be needed in the currency of the savings. Your own scenario is easy to run through in the calculator.

When planning "with a single sum" does not work

The "price plus a percentage" approach does not work for a non-resident with money in another currency, with the sale of another asset to fund the purchase, or with a mortgage whose approval depends on foreign income. In each of these cases the failure of one date shifts the whole deal, so a fallback source is put next to every amount.

Nor does it work for someone who signs the arras before checking the flat in order to "make it in time": losing the deposit because the money was not ready costs more than any exchange rate. If you need a purchase plan with dates and checks, it can be discussed with DNPI through the contacts page.