Madrid might be a mecca of European politics and business, but the overwhelming majority of foreigners look to buy a property in Barcelona.
Barcelona received more real estate investment than Madrid in 2021 with €3 billion compared to the capital’s €2 billion. Home to one of Spain’s most successful football teams and Spain’s most visited tourist attraction (the Sagrada Familia) Barcelona also has the highest housing prices in the country – averaging €3,972 per m² at the end of Q1 in 2022.
Real estate trends in 2022 indicate that Barcelona’s real estate sector is on the rebound after the COVID-19 pandemic. And with the America’s Cup set for 2024, strong demand as an international business hub, and a standout cultural highlight of Spain, Barcelona is clearly one of the best places to buy a property in Spain.
So can foreigners buy a property in Barcelona?
The short answer is, yes. But in order to tailor this answer to your specific needs we’ve prepared a Q&A below.
Can foreigners buy a property in Barcelona?
Yes, foreigners can buy a property in Barcelona. More specifically, you can buy a property in Barcelona even if you are not a Spanish resident (or Barcelona resident). Foreigners can also buy a house in Barcelona with no intention of later becoming a resident, and can rent or sell a property in Barcelona with non-resident legal status.
What documents do foreigners need to buy a property in Barcelona?
Whether you want to buy a property in Barcelona as a UK citizen, an EU citizen, a US citizen, an Australian, from Asia or anywhere else in the world – you will need a NIE.
The NIE stands for Numero de Identidad de Extranjero. It is an all-purpose identification number for foreign nationals in Spain, similar to a National Insurance number in the UK or a Taxpayer Identification Number (TIN) in the United States of America.
You will need your NIE before signing any type of contract or deed while buying a property in Barcelona. This information page from Barcelona Town Hall explains that acquiring a NIE precedes – and is separate to – any certificate of residence or identity card for foreign nationals. As such, the NIE can only be used for specific economic, professional or social purposes. The NIE also does not have an expiry date – you have it for life.
As Ábaco Advisers explain, you’ll need the following documents to successfully receive your NIE.
- Proof of a pre-arranged appointment (at a relevant police station or immigration office)
- A completed EX-15 form
- Your passport, and a photocopy of relevant pages
- Photocopy of any document that supports your NIE application, for example, proof that you’re purchasing a property
- Non-EU citizens may need to present flight details in and out of Spain, and evidence of a valid Visa
- Payment of government fee using a 790 NIE application form (around €10)
The most common method is to get a NIE in person, by filling out the relevant forms and bringing all documentation to an appointment at the nearest Policía Nacional (National Police) station or at the immigration office on Passeig Sant Joan, 189, in Barcelona. After submitting relevant documents it should take 5 working days to receive your NIE. You can make an appointment to apply for a NIE in available Barcelona-based offices through this government link.
You can also authorise a third party to apply for a NIE in your name – many businesses offer a tailored service in English, for which you may need to create a power of attorney (poder notarial) document. This can be a popular method if you do not speak Spanish or do not have the time to spend a week in Barcelona waiting for your NIE. At Lasose Properties & Investments we specialise in Barcelona relocations for individuals and corporate clients – don’t hesitate to contact us with any questions.
You cannot apply for your NIE online, however you apply for a NIE at a Spanish consulate or Embassy in your country of citizenship.
Do I need a TIE card to buy a house in Barcelona?
No, a TIE card is not essential to buy a house in Barcelona.
TIE stands for Tarjeta de Identidad Extranjera and though it will display a foreigner’s NIE number they are two separate documents, with separate application processes. If you are not an EU citizen (or a UK citizen moving to Barcelona after Brexit) you need a TIE card to establish your residency in Spain. However, as the NIE allows you to make economic transactions and is used for tax purposes, you can buy a house in Barcelona with only a NIE number.
You can read our guide on how to get a TIE card in Spain here.
Can foreigners get a mortgage on a house in Barcelona?
Yes, you can get a mortgage as a foreigner in Barcelona.
Typically, non-residents can borrow up to 70% of the total purchase price when buying a house in Barcelona (compared to 80% for residents and Spanish nationals). However not all banks will offer mortgages for non-residents. Some, like Santander, will only offer fixed-rate mortgages and offer discounts on interest rates if you take out another Santander product – like life insurance.
You can read the Lasose Properties & Investments guide on mortgages for non-residents in Spain here.
Can foreigners pay cash for a house in Barcelona?
Foreigners can pay cash for a house in Barcelona.
A real estate investment over €500,000 in Barcelona can also grant residency for non-EU citizens via the golden visa scheme. The residence permit also grants the right to work in Spain, and foreigners can invest directly or indirectly via a registered company. According to Spain Advisors, when buying a house in cash be prepared to pay 10% sales tax on top of the purchase price, plus around €5,000 in other fees.
As a rule, add 12-14% on top of the purchase price for a house you pay in cash. (Sales tax drops to 5% if you are under 33 and fulfill other requirements.)
Do foreigners need a Spanish bank account to buy a house in Barcelona?
Foreigners do not need a Spanish bank account to buy a house in Barcelona.
However, you will save a lot of time and hassle if you do have a Spanish bank account before buying a property. According to legal firm Spanish Solicitors regulations to stop money laundering are a prime reason to open a Spanish Bank account before buying a house in Barcelona.
You cannot authorise a lawyer to transfer final payments on a property purchase on your behalf, meaning you will need to justify the origin of funds from your foreign bank account and may be liable to an inspection for up to 10 years by the Spanish money laundering authorities. If you have deposits in a Spanish Bank account in advance, any transfers will automatically pass money laundering filters.
Foreigners can be in the process of opening a bank account from outside of Spain, and many banks provide services for non-residents. Usually, at least one personal visit to your bank branch is obligatory before completing the process.
According to MySpanishResidency, you will also save time and commissions when buying a property in Barcelona with a Spanish Bank account.
What taxes must foreigners pay when buying a house in Barcelona?
The costs of buying a property in Barcelona are mainly paid by the buyer. Taxes include:
- For second-hand homes: property transfer taxes between 6–10%
- For new builds: VAT (IVA in Spanish) at 10%
- Notary costs, title deed tax and land registration fees between 1–2.5%
- Legal fees 1–2%
Foreigners will also be required to pay certain taxes after buying a property in Barcelona. The tax you pay, and the tax declarations required, largely depend on whether you rent the property out or not.
If you are a resident, additional property taxes include:
- Income tax on earnings gained by renting out the property
- Imputed income tax if your property remains empty (taxed according to other earnings and personal allowance taxes)
- Capital gains tax (19-23% when selling your property)
- Property tax (IBI, between 0.66-0.8% in Barcelona)
If you are a foreigner (non-resident) these property taxes are:
- Income tax on earnings gained by renting out the property (19% for foreigners from the EU/EEA and 24% for foreigners from other countries)
- Imputed income tax if your property remains empty (see this guide from HousesInSpain.com for info on how this tax is calculated)
- Capital gains tax (19% for foreigners from the EU/EEA and 24% for foreigners from other countries when selling a property)
- Wealth tax if your property or net worth is over €500,000 in Catalunya (read more about this from Barcelona International Welcome)
- Property tax (IBI, between 0.66-0.8% in Barcelona)
Bear in mind you will also need to pay for waste disposal services, usually once a year.
If you live in Barcelona for less than six months (183 days) in a calendar year, you are classed as a non-resident and only pay tax on your income from within Spain. Foreigners who own a property in Barcelona will need to file a tax return to the Spanish authorities (typically through a tax representative) whether the property is earning rental income or not, and even if you have no business interests in Spain.
Read examples of how much imputed income you could pay on your Barcelona property in our 11-guide on how to buy a house in Barcelona. Read more about calculating property tax in Barcelona here.
Where is the best neighbourhood to live in Barcelona?
The Catalan capital is made up of 10 districts, and each could well claim to be the best neighbourhood to live in Barcelona.
You can read the Lasose Properties & Investments report for an overview of housing prices in Barcelona. The above guide looks at housing trends and a breakdown of prices per m2 by neighbourhood in Barcelona.
Equally, click here for our deeper dive of the top four Barcelona neighbourhoods to live in for foreigners.
This was a Q&A designed to answer the question: can foreigners buy a house in Barcelona? If you have any other questions about houses for sale in Barcelona, do not hesitate to contact Lasose Properties & Investments. Our English-speaking team of experienced real estate professionals and relocation experts will be delighted to help.
