Buying Guide Details

Buying Property on the Costa Brava

Tossa on the Costa Brava, Spain

Where to buy property on the Costa Brava

Situated in the very northeast of Spain, the Costa Brava is the coast that goes from the border with France in the north past Barcelona towards Tarragona in the south.

Once a package holiday hotspot, the area now attracts a more discerning visitor. While the ‘bucket-and-spade’ resorts do still exist, there is now more emphasis on and interest in high-quality developments and traditional Catalan property.

The temperate, year-round climate makes the area a popular golf destination, with excellent courses located around Barcelona, Girona and Figueres. Though not the cheapest type of property in the region by far, a property on or near a golf course along the Costa Brava is sure to attract interest and healthy rental returns whatever the time of year.

There are plenty of coastal resorts to suit most tastes, from the touristy resorts of Tossa de Mar and Lloret de Mar to the marina and water sports of Estartit. South of Barcelona is technically called the Costa Maresme. Sitges is perhaps the best known of the resorts, catering for an upmarket crowd and particularly frequented by homosexuals.

Generally speaking, properties inland are less expensive than their counterparts directly on the coast. With the Pyrenees Mountains not far away, skiing is a popular winter pastime and a property close to the resorts means the best of all worlds – the beauty of rural Catalunya, proximity to winter sports and fabulous beaches just a short drive away.

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The Process of Buying Property on the Costa Brava

Anyone wishing to buy (or sell) a property on the Costa Brava must first obtain from the state – in person – a fiscal number for foreigners known as NIE (numero de identificacion de extranjeros)
Once the property buyer has received the NIE number, the property buyer’s lawyers can make an offer on their behalf. When a price has been agreed, it is recommended that both parties sign a preliminary agreement which outlines details such as the completion date
A deposit of 10% is the normal amount placed to secure the deal. After this, if the property buyer pulls out they lose the full deposit but, should the seller decide not to go ahead, he/she must return double the amount of the deposit – i.e. 20% – to the buyer
If buying a property on the Costa Brava off-plan, it is usual for payments to be broken into stages, the balance being paid when construction finishes
On completion, when all the necessary checks have been carried out, both parties sign the escritura (title deeds) in the presence of a notary. The property buyer then pays the balance, plus all other fees and taxes. Copies of the deeds are sent to the Land Registry and the tax office.

Homes Overseas Property Club

Homes Overseas has joined forces with a collection of IFA specialists to form the Homes Overseas Property Club (HOPC), designed for existing and prospective overseas property homeowners.

The Club – which has access to international lawyers in no fewer than 43 different countries - has been set up in order to guide people through some of the various issues relating to buying and maintaining a property overseas. It offers advice on a range of topics, including financial, legal, insurance, taxation, property management and foreign currency matters.

For further information please telephone 0845 838 7142 or email info@homesoverseaspropertyclub.com

Fees & Taxes

Taxes and fees usually amount to around 10% of the total purchase price of the property on the Costa Brava
Taxes payable depend on whether the property on the Costa Brava being purchased is new-build or resale. Currently, transfer tax of around 7% is applied on resales, which includes stamp duty. For new-build properties, VAT (IVA) of 7% is payable in addition to 1% stamp duty
On top of this there is also plusvalia (capital gains tax), which is set by the local authorities and depends on the area concerned and the amount of profit being made on the sale. This is usually paid by the seller
If the property buyer is purchasing land or commercial property on the Costa Brava rather than residential property on the Costa Brava, VAT is 16% as opposed to 7%. Stamp duty remains the same
Most Spanish lawyers charge around 1% of the final purchase price, and notary fees are around 0.5%
Agents’ fees can vary anywhere between 2% and 15% – so be careful not to be ripped off

Getting there

Girona and Barcelona are served by a wealth of airlines from many regional airports in the UK year-round.

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