Complete Guide to Buying Property in Girona and Costa Brava for Foreigners

Table of Contents

• 1. Introduction
• 2. Why Choose Girona and Costa Brava?
• 3. Types of Properties in Girona and Costa Brava
• 4. Legal Requirements for Foreign Buyers
• 5. The Buying Process in Spain
• 6. Costs and Fees Involved
• 7. Financing Your Property Purchase
• 8. Common Pitfalls for Foreign Buyers
• 9. Residency and Visa Options
• 10. Renting Out Your Property
• 11. Costs of Living in Girona and Costa Brava
• 12. Language Barriers and Navigating Bureaucracy
• 13. Settling into Girona and Costa Brava
• 14. External Links and Sources
• 15. Conclusion

1. Introduction

The regions of Girona and Costa Brava in northeastern Spain are renowned for their breathtaking landscapes, rich cultural heritage, and desirable coastal properties. For foreigners looking to invest in property abroad, these areas offer a mix of historic charm and modern amenities. However, purchasing property as a non-resident in Spain involves specific legal and financial steps that need to be followed.

This comprehensive guide will help you navigate the property market in Girona and Costa Brava, understand the legal requirements, and avoid common pitfalls. Whether you’re looking for a vacation home, a retirement destination, or an investment opportunity, this guide will provide you with all the necessary information.

2. Why Choose Girona and Costa Brava?

There are several reasons why Girona and the Costa Brava are highly sought after by international buyers:

• Geography and Climate: Located on the Mediterranean coast, the Costa Brava boasts sunny weather, crystal-clear waters, and beautiful beaches. The inland region of Girona offers rolling hills, medieval towns, and a cooler climate, making it an ideal escape from the heat of the coast during summer.
• Lifestyle and Cultural Appeal: Girona is known for its medieval architecture, Roman walls, and cultural festivals, while the Costa Brava is home to charming fishing villages like Cadaqués, rich artistic history (including Salvador Dalí), and excellent cuisine.
• Investment Potential: Over the years, property values in this region have increased, particularly in popular tourist spots like Lloret de Mar and Tossa de Mar. This makes Girona and Costa Brava an attractive location for real estate investors looking for long-term gains.
• Proximity to Major Cities: Girona is located just over an hour away from Barcelona by car or train, and the French border is also nearby. This makes it convenient for international travel and access to major European cities.

3. Types of Properties in Girona and Costa Brava

The property market in Girona and the Costa Brava offers a wide range of options, from modern apartments to traditional farmhouses:

• Coastal Villas: Luxurious villas along the coast are some of the most expensive properties, often featuring sea views, private pools, and large gardens. These are popular among buyers looking for holiday homes or retirement residences.
• Apartments: Apartments are generally more affordable than villas, especially in coastal towns like Lloret de Mar and Roses. Many of these apartments are part of residential complexes with shared amenities like swimming pools.
• Rural Masias (Farmhouses): Traditional Catalan farmhouses, known as “masias,” are located in the countryside. These properties are ideal for those seeking a quieter, more rural lifestyle. Many of them require renovation but offer large plots of land and plenty of character.
• Historic Properties: Girona’s Old Town offers historic properties with unique architectural features such as stone facades, Roman walls, and ancient courtyards. These are perfect for those who appreciate history and heritage.

The price of properties varies significantly depending on their location. Coastal towns and those with tourist appeal tend to be more expensive, while rural areas may offer more affordable options.

4. Legal Requirements for Foreign Buyers

As a foreigner, buying property in Spain is possible, but there are specific legal steps that must be followed to ensure the process goes smoothly:

• NIE (Foreigner Identification Number): The NIE (Número de Identificación de Extranjero) is a unique identification number for foreigners in Spain. It is required for any financial transaction, including buying property. You can apply for an NIE at a Spanish consulate in your home country or in Spain itself.
• Power of Attorney: If you are not able to be physically present for every step of the property transaction, you can assign power of attorney to your lawyer. This will allow them to sign documents on your behalf and handle legal matters.
• Spanish Property Law: Spain has strict property laws designed to protect buyers, but it’s still important to hire an experienced lawyer who can conduct due diligence. They will check for any debts on the property, ensure that all paperwork is in order, and assist in the signing of the final purchase contract (Escritura Pública).
• Bank Account: Opening a local Spanish bank account is necessary for handling financial transactions such as mortgage payments, taxes, and utilities. Most Spanish banks allow non-residents to open accounts, but the process requires specific documentation, including your NIE.

Once you have completed these legal requirements, the buying process can move forward smoothly. Working with a lawyer who is familiar with Spanish property laws will help ensure that the purchase is legally sound.

5. The Buying Process in Spain

Purchasing property in Spain involves several stages. Understanding each step will help you avoid surprises and ensure a smooth transaction:

Step 1: Property Search

Most buyers start their search through online platforms such as Idealista or Rightmove, which feature properties available across Spain, including Girona and the Costa Brava. Alternatively, you can engage a local real estate agent to help you find the perfect home or investment.

Step 2: Reserving the Property

Once you’ve found the right property, you can reserve it by signing a deposit contract, known as the Contrato de Arras. This contract typically requires a 10% deposit of the total purchase price and outlines the terms of the purchase. If the buyer pulls out after signing the Arras, they usually forfeit the deposit. However, if the seller pulls out, they may be liable to pay back double the deposit amount.

Step 3: Final Purchase Contract (Escritura Pública)

The final step is signing the Escritura Pública (public deed) in front of a Spanish notary. The notary will verify the legality of the sale and ensure that all relevant taxes and fees have been paid. At this point, the remaining balance of the purchase price is paid, and the property is officially transferred to the buyer’s name.

6. Costs and Fees Involved

In addition to the purchase price of the property, there are several additional costs involved when buying property in Girona and the Costa Brava. It’s essential to budget for these extra fees:

• Transfer Tax (ITP): The Impuesto de Transmisiones Patrimoniales (ITP) is the property transfer tax applied to second-hand homes. The rate varies by region but is typically between 6-10% of the property’s sale price. For new homes, a VAT of 10% is applicable instead of the ITP.
• Notary Fees: These fees cover the notary’s role in preparing the public deed and verifying the transaction. The cost is generally between 0.5-1% of the property price.
• Land Registry Fees: After purchasing a property, it must be registered in your name at the Land Registry. The cost typically ranges from 300-600 euros, depending on the value of the property.
• Lawyer’s Fees: It’s highly recommended to hire a lawyer who specializes in Spanish real estate transactions. Lawyers typically charge between 1-2% of the purchase price.
• Ongoing Taxes (IBI): Once you own the property, you’ll be liable to pay local property taxes known as IBI (Impuesto sobre Bienes Inmuebles). The amount is based on the cadastral value of the property and usually ranges between 0.4-1.1% annually.

7. Financing Your Property Purchase

Foreigners are eligible to apply for a mortgage in Spain, though the terms and conditions may differ slightly from those offered to residents. Here’s what you need to know about financing your property purchase:

Mortgages for Non-Residents

Spanish banks offer mortgages to foreign buyers, though typically at a lower loan-to-value (LTV) ratio than for residents. Non-residents can expect to borrow between 60-70% of the property value, while residents may borrow up to 80%. It’s important to have all necessary documents ready when applying for a mortgage, including proof of income, bank statements, and your NIE number.

Spanish Banks and Interest Rates

Interest rates in Spain can either be fixed or variable. Currently, fixed interest rates tend to be more popular, as they provide greater certainty over long-term payments. Variable rates, often linked to the Euribor, fluctuate and could result in lower payments during periods of low rates but increase during periods of high interest rates.

Currency Exchange Considerations

If you’re purchasing property from outside the Eurozone, currency exchange fluctuations can significantly impact the total cost of your investment. To manage this risk, consider using currency exchange services that allow you to lock in exchange rates and avoid fluctuations during the buying process. Companies like Moneycorp or Western Union offer specialized services for property buyers.

8. Common Pitfalls for Foreign Buyers

Buying property abroad comes with its challenges, and being aware of common pitfalls can help you avoid costly mistakes. Here are some things to watch out for:

• Legal and Financial Checks: It’s crucial to ensure that there are no outstanding debts on the property (such as unpaid taxes or utility bills) and that all legal paperwork is in order. Hiring a local lawyer to conduct a due diligence check will save you from future problems.
• Overpaying for a Property: The Costa Brava is a popular region, and property prices in prime locations can be inflated. Ensure you’re not overpaying by comparing similar properties in the area and working with an independent appraiser if necessary.
• Not Understanding Local Regulations: Coastal properties are subject to strict regulations regarding renovations, and some rural properties may be affected by zoning laws or protected land status. Before purchasing, make sure you understand any restrictions that could affect your property plans.
• Real Estate Scams: Like any international market, scams can occur. Always deal with licensed real estate agents and make sure all payments go through verified accounts. Avoid making any advance payments without proper documentation.

9. Residency and Visa Options

Purchasing property in Spain can open up several residency opportunities for foreigners. Understanding the different visa and residency options available is crucial for those planning to live or invest long-term in Girona or Costa Brava.

Golden Visa Program

Spain’s Golden Visa program allows non-EU citizens to obtain residency by investing in Spanish property. To qualify, you must invest at least €500,000 in real estate. The benefits of the Golden Visa include the right to live and work in Spain, travel freely within the Schengen Zone, and a path to permanent residency and citizenship.

• Eligibility Requirements: A minimum property investment of €500,000.
• Benefits: Free travel across the Schengen Area and residency for family members.
• Application Process: You must apply for the Golden Visa through the Spanish consulate or government offices in Spain. The application process usually takes 2-3 months.

Other Residency Options

If the Golden Visa program isn’t the right fit, there are other ways to obtain residency in Spain:

• Non-Lucrative Visa: This visa is ideal for retirees or those not planning to work in Spain. Applicants must demonstrate sufficient financial means to support themselves and prove they have adequate health insurance.
• Work Visa: If you are moving to Spain for employment, your employer will typically sponsor your work visa. Alternatively, if you plan to start a business or work as a freelancer, there are specific visas for entrepreneurs and self-employed workers.

10. Renting Out Your Property

If you’re purchasing property in Girona or Costa Brava as an investment, renting it out can provide a source of income. However, it’s important to understand the local regulations and tax implications associated with renting property in Spain.

Short-Term Rentals

Short-term rentals are popular in coastal areas like Costa Brava, especially during the tourist season. However, stricter regulations have been implemented in some regions to control the rental market. In certain towns, you must obtain a tourist rental license to legally rent your property on platforms like Airbnb.

• Rental License: To rent your property short-term, you’ll need to apply for a tourist rental license through your local town hall. The requirements and availability of licenses vary by municipality.
• Taxation on Short-Term Rentals: Rental income is subject to taxation in Spain. Non-residents are taxed at a flat rate of 19% on rental income, while residents are taxed progressively based on their total income.

Long-Term Rentals

Alternatively, you can choose to rent your property long-term. This option usually provides more stability and requires less administrative work than short-term rentals. However, Spanish rental laws provide significant protections for tenants, so it’s important to be aware of your rights and obligations as a landlord.

• Rental Agreements: Long-term rental contracts in Spain are usually for a minimum of one year. The law allows tenants to extend the contract for up to five years in many cases.
• Tax Implications: Like short-term rentals, long-term rental income is taxable. Non-residents are taxed at a flat rate, while residents are subject to progressive tax rates.

11. Costs of Living in Girona and Costa Brava

Once you’ve purchased a property, it’s essential to consider the ongoing costs of living in the region. Here’s a breakdown of common expenses in Girona and the Costa Brava:

Utilities and Maintenance Costs

Utility costs in Spain are relatively moderate, but they can vary depending on the size of the property and whether it is occupied year-round or only seasonally.

• Electricity: On average, electricity costs around €100-150 per month, depending on usage and whether you have air conditioning or electric heating.
• Water: Water bills are generally affordable, with most households paying around €20-40 per month.
• Gas: Gas is used mainly for heating, and average costs range from €50-100 per month, depending on the season.

Community and Maintenance Fees

If you purchase an apartment or a property in a residential complex, you’ll likely be required to pay community fees (gastos de comunidad). These fees cover shared amenities such as swimming pools, elevators, and building maintenance.

• Community fees can range from €50-200 per month, depending on the property and its facilities.
• For villas or standalone homes, you’ll also need to budget for maintenance costs like garden upkeep, pool cleaning, and regular repairs.

Healthcare and Education Costs

For expats moving to Spain, access to healthcare and education is another important consideration:

• Healthcare: Spain offers a high-quality public healthcare system, but many expats also choose to take out private health insurance for added flexibility and shorter waiting times. Public healthcare is available for residents, while private insurance costs average around €50-100 per month.
• Education: For families with children, international schools in the Girona region offer bilingual education, but tuition fees can range from €5,000-15,000 per year.

12. Language Barriers and Navigating Bureaucracy

While many locals in tourist areas speak English, it’s essential to familiarize yourself with some basic Spanish or Catalan phrases, especially when dealing with government offices or legal documents.

Working with Bilingual Professionals

It’s highly advisable to work with bilingual professionals, including lawyers, real estate agents, and notaries. Many professionals in the Girona and Costa Brava areas offer services in both English and Spanish, making the property buying process much easier for foreigners.

Translating Documents

If you don’t speak Spanish or Catalan, you’ll need official translations of all legal documents, such as the purchase contracts, mortgage agreements, and tax forms. Professional translators can assist with this, and your lawyer will ensure that you understand all legal obligations.

Dealing with Bureaucracy

Spain’s bureaucracy can be slow, and patience is key when dealing with local government offices. Whether you’re applying for an NIE, a tourist rental license, or dealing with tax offices, make sure you allow sufficient time for processing, especially during busy tourist seasons.

13. Settling into Girona and Costa Brava

Once you’ve purchased your property, the process of moving in and integrating into the local community begins. Whether you plan to live in Girona or Costa Brava full-time or use it as a holiday home, there are several key steps to take to ensure a smooth transition.

Community and Social Life

Girona and the Costa Brava have active expat communities that can help you settle into your new life. From social clubs to local meetups, expats can enjoy a sense of community with others who have moved to the region. You’ll find groups that cater to various interests, including hiking, dining, and language exchange programs.

Moving Your Belongings

Moving internationally can be challenging, but several relocation services specialize in helping foreign buyers move their belongings to Spain. Companies such as DHL or MoveHub offer international moving services that can handle customs and logistics.

Healthcare for Expats

As an expat, you’ll want to ensure you have access to both public and private healthcare in Spain. The public healthcare system offers high-quality services, but many expats choose to take out private insurance for quicker access to medical care. Private clinics are abundant in Girona and along the Costa Brava, offering top-notch services in English and other languages.

14. External Links and Sources

To help with the property buying process and provide additional resources, here are some useful links:

• Idealista – Spain’s largest real estate portal, with listings in Girona and Costa Brava.
• Rightmove Overseas – A global property search platform featuring homes in Spain.
• Moneycorp – Currency exchange service tailored for foreign property buyers.
• Ministry of Justice (NIE Application) – Official site for obtaining the Foreigner Identification Number (NIE).
• Golden Visa Information – Official details about Spain’s Golden Visa program.
• Tax Office (AEAT) – Spain’s tax office, where you can find information on taxes for property owners and landlords.
• DHL International – Shipping and relocation services for international moves to Spain.

15. Conclusion

Buying property in Girona and Costa Brava is an excellent investment for those seeking a beautiful, culturally rich, and strategically located region in Spain. Whether you’re looking for a vacation home, a retirement property, or an investment, this guide has provided you with the essential steps to make the process smoother.

From understanding legal requirements, financing, and local taxes to navigating residency options and rental opportunities, thorough preparation and professional advice are key. The unique blend of historic charm, vibrant culture, and stunning natural beauty makes Girona and Costa Brava a dream destination for property buyers from all over the world.

If you’re ready to make the move, consult the external resources provided, and start your journey toward owning a slice of this Mediterranean paradise.

5 FAQs After the Conclusion:

1. Can foreigners buy property in Costa Brava or Girona?
   • Yes, there are no restrictions for foreigners purchasing property in Spain. However, you will need to obtain an NIE (Foreigner Identification Number) to complete the purchase process.
2. What are the main costs involved in buying property in Girona or Costa Brava?
   • In addition to the purchase price, buyers must budget for taxes (ITP for resale homes or VAT for new builds), notary fees, lawyer fees, and land registry costs.
3. How long does it take to buy property in Spain?
   • The buying process can take between 1-3 months, depending on the complexity of the transaction and the speed of obtaining necessary documents like the NIE and financing.
4. Can I get a mortgage in Spain as a foreigner?
   • Yes, many Spanish banks offer mortgages to non-residents, typically covering 60-70% of the property value. However, you will need to provide proof of income and other financial documentation.
5. What is the Golden Visa program, and how do I qualify?
   • The Golden Visa program allows non-EU citizens to gain residency by investing at least €500,000 in Spanish real estate. It offers free travel within the Schengen zone and a path to permanent residency.

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