Buying Guide Details

Buying Property on the Costa Dorada

Tamarit Castle, Tarragona, Costa Dorada, Spain

The Costa Dorada (or ‘Costa Daurada’) is located on Spain’s east coast, running from south of Barcelona, and for property buyers who really want to integrate with the locals, the area has much to offer.

Where to buy property on the Costa Dorada

The ‘Golden Coast’ is characterised by kilometre after kilometre of sand dunes punctuated by the occasional fishing village. Tarragona, Salou and Cambrils are perhaps the best-known coastal towns.

The coast is less wild than the Costa Brava to the north, the climate is excellent in summer, though winters can be very cold. Consequently some of the more popular holiday destinations can be deserted off season. Prices of Property in the Catalyan area are below average for the country and certainly much cheaper than Barcelona, though the nearer you get to the Catalan capital, the higher property prices become.

Tarragona is a busy commercial and fishing port but it also benefits from sandy beaches and coves. It is also just 12 kilometres from Reus airport, and well connected to the rest of the coast. Salou, close to the Port Aventura water park, and Cambrils are excellent family resorts.

Looking inland can bring up some excellent property bargains. Particularly popular with overseas property buyers are the traditional masias, stone-built country properties, either as renovation projects or as refurbished, habitable properties. Buying a property in this region will require the desire to participate with local life as it lacks the expat-friendly amenities of some other costas.

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The Process of Buying Property on the Costa Dorada

Anyone wishing to buy (or sell) a property on the Costa Dorada 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 property buyer
If buying property on the Costa Dorada 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 Dorada
Taxes payable depend on whether the property on the Costa Dorada 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 Dorada rather than residential property on the Costa Dorada, 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

Barcelona and Reus (Salou) are, between them, served by almost every low-cost airline from many regional airports in the UK year-round.

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