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Buying process
Here’s a complete overview of the buying process when purchasing a property on the Costa del Sol, including legal, financial, and practical steps:
complete overview of the buying process
1. Define Your Budget and Needs — And Most Importantly; Find the Property You Love!
Determine how much you’re willing and able to invest in your new property.
Consider whether you’re buying for personal use, investment purposes, or for rental income.
Define your preferred location(s) (e.g., Marbella, Estepona, La Cala) and property type(s) (villa, apartment, duplex).
2. Liaise With a Lawyer (Highly Recommended!)
A Spanish property lawyer will protect your interests, handle due diligence, and manage contracts.
They ensure the property is free of debts, has correct legal documentation, and complies with planning regulations.
3. Obtain a Spanish NIE Number
NIE (Número de Identificación de Extranjero) is required for any legal or financial transaction in Spain.
You can apply through a Spanish consulate or locally via your lawyer.
4. Open a Spanish Bank Account
Needed to transfer funds, pay taxes, and manage utilities.
You’ll later on in the purchasing process (often but not necessarily) use this account to pay the deposit and later the full purchase amount.
5. Make an Offer & Sign a Reservation Contract
Once you’ve found a property you love, a small reservation fee (typically €6,000–€10,000) secures it and takes it off the market. The reservation fee will be deposited in the client account of the vendors lawyer.
A reservation contract outlines the main terms and prevents other buyers from entering negotiations.
6. Sign the Private Purchase Contract (PPC).
Usually within 1–2 weeks of the reservation it is required to sign the PPC.
You’ll pay a deposit, typically 10% of the purchase price, deducted the reservation fee already paid — once again, the payment will be deposited in the client account of the vendors lawyer.
The contract outlines terms, timelines, and penalties for withdrawal by either party.
7. Final Legal Checks & Mortgage (if needed)
Your lawyer completes due diligence: confirming ownership, checking for debts, verifying licenses.
If you need a mortgage, your bank will arrange property valuation and approval. Foreigners can usually borrow up to 60–70% of the property value.
8. Completion at the Notary
Vendor and seller (or their legal representatives) meet at the notary office to sign the Escritura de Compraventa (title deed).
Buyer pays the remaining balance due, and the property is officially transferred to you as the new owner.
9. Registration & Taxes
The lawyer registers the title deed at the Land Registry (Registro de la Propiedad).
You’ll pay applicable taxes and fees, such as follows:
Standard Buyer Costs (approx.):
Transfer Tax (ITP): approx. 7% (on resale properties)
Spanish VAT (IVA): usually only applicable on new developments sold for the first time and/or purchased directly from the developer: 10% (on residential properties)
Stamp Duty (AJD): approx. 1.2-1.5% depending on the property and/or if it’s a resale or new build
Notary + Land Registry Fees: approx. 1–1.5%
Legal Fees: approx. 1%
Cost in total (approx.):
For new developments the total purchase cost is approx. 13.5% of the purchase value.
For resale properties the total purchase cost is approx. 10.5% of the purchase value.
N.B.: All numbers and percentages provided here are not legally binding and may vary.
Purchase Summary Timeline:
Week 1–2: Find property, reserve it.
Week 2–4: Sign PPC contract.
Week 4–8+: Complete due diligence and mortgage process.
Final step: Sign deeds, pay, and get keys!