The Costa del Sol Property Buyer’s Guide

Buying on the Costa del Sol follows a clear, well-established legal path: a formal offer and reservation deposit, a private purchase contract, and completion of the title deed before a notary. This guide walks through each stage, then sets out the taxes and fees payable on purchase, the running costs that follow, and the two administrative items every non-Spanish buyer needs in place before signing.

The Steps to Buying a Property on the Costa del Sol

• 1. Formal offer & deposit
  A written offer plus a good-faith deposit takes the property off the market.
• 2. Private purchase contract
  Contrato privado de compraventa: price, terms and completion date, with a downpayment.
• 3. Deed at the notary
  Escritura de compraventa: balance paid, keys handed over, title registered.

Formal Offer and Good Faith Deposit

Once you find a property you wish to purchase, the first step is to make a formal offer in writing and provide a good faith deposit. The deposit, usually held by the lawyer, varies based on the property price and other factors.

Your Sales Agent, as your trusted real estate broker in Marbella, will advise you on the exact amount. If the Seller accepts your offer and signs it, the property is taken off the market, and a reserve agreement is formed. This agreement will outline the conditions and timelines for the next steps.

We always recommend working with a solicitor when buying a property in Marbella. We can connect you with a lawyer who speaks your language to ensure the process is smooth and legally sound.

Formal Offer and Private Purchase Contract (Contrato Privado de Compraventa)

The Private Purchase Contract (Contrato privado de compraventa) is a simple agreement where the Seller agrees to sell and the Buyer agrees to purchase the property at the agreed price.

This contract will outline key details such as the property description, price, payment terms, and completion date. At this stage, the Buyer typically makes a downpayment (usually 10% of the purchase price, though this can vary), which is paid to the Seller’s bank account.

A clause in the contract usually states that if the Seller withdraws from the sale, the Buyer will receive double the downpayment as compensation. However, if the Buyer withdraws, the deposit is forfeited.

Before entering into the contract, due diligence checks are carried out to verify the legal and technical details of the property, ensuring everything is in order before proceeding with buying a property in Marbella.

Completion of the Public Deed of Conveyance (Escritura de Compraventa)

On the agreed completion date, the balance of the purchase price is paid. The Buyer and Seller then sign the Public Deed of Conveyance (Escritura de compraventa), which is equivalent to the title deed of the property.

This deed is signed in front of a Notary Public, who certifies the property transfer. A copy of the deed is then sent to the Spanish Tax Office and the Property Registry.

Costs Involved in the Purchase

New Build Property from a Developer

For new residential properties and building plots of land, VAT (IVA) and Stamp Duty (AJD) apply.

• VAT: 10% for new residential properties like Marbella new builds for sale and 21% for building plots.
• Stamp Duty: 1.2% of the purchase price in Andalucía. Together with 10% IVA, tax on a new build comes to 11.2% of the price.

Resale Property from a Private Individual

For resale properties, Transfer Tax (ITP) applies. In Andalucía it is a flat 7% of the purchase price. Rates differ in other Spanish regions.

Since 2022 the taxable base is the higher of the price you pay and the property’s valor de referencia, so the tax can be calculated on a figure above the agreed price. For a line-by-line breakdown with worked examples at €1.5M, €3M and €8M, see The Real Cost of Buying Property in Marbella.

Solicitor’s Fees

Though not required by law, it is highly recommended to hire a solicitor when buying a property in Marbella. Fees generally range around 1% of the property price, depending on the scope of the work.

Notary Public’s Fees and Land Registry Fees

Notary fees depend on the purchase price and the complexity of the deed.

Additional Costs After Purchase

• Wealth tax (Patrimonio)
  An annual tax for non-residents based on the net value of Spanish assets.
• Community fees
  Payable on apartments and townhouses inside a community of owners.
• Non-resident income tax (IRNR)
  Due whether the property is rented out or kept for personal use.

Wealth Tax for Non-Residents (Patrimonio)

Non-residents are required to pay an annual wealth tax based on the net value of their assets in Spain. This includes properties, stocks, bank funds, etc. The tax rate is progressive, starting at 0.2% and rising to 2.5%. There is a significant tax-free allowance, which varies by region.

For couples, the wealth tax is split, so if two clients purchase a property, the tax is based on their individual shares.

Community Fees

Applicable when purchasing an apartment or townhouse within a community of owners. These fees cover shared expenses like concierge service, maintenance, and cleaning. They are typically paid monthly or quarterly. For example, if you are considering buying new apartments in Marbella, community fees can vary based on the property’s amenities and services.

Non-Resident Income Tax (IRNR)

Non-residents are subject to income tax if they own property in Spain which is paid every year. Even if the property is not rented out, the tax applies based on the imputed annual income from the property. The rate is 19% for EU residents and 24% for non-EU residents.

If the property is rented out, tax is calculated based on the rental income, with possible deductions for property management and maintenance costs.

Administrative Requirements

• Spanish NIE
  The foreigner tax identification number. Nothing can be signed without it, so apply early.
• Spanish bank account
  Used for the purchase payments, then for utilities, community fees and local taxes.

Spanish NIE (Tax Identification Number) and Bank Account

Before completing the purchase, non-Spanish buyers must obtain a Spanish NIE (Número de Identidad de Extranjero) and open a Spanish bank account. The NIE is required for tax and property-related matters.

It’s advisable to obtain the NIE early in the process to avoid delays. If necessary, a Power of Attorney can be used to delegate this task.

A Spanish bank account is needed to manage payments. The bank will require documentation to prove the source of the funds being used for the purchase, particularly if you’re interested in luxury real estate Marbella or any other high-value properties.

Due Diligence: What Must Be Checked Before You Sign

In Spain, debts and irregularities attach to the property, not only to the person selling it. If a previous owner left unpaid community fees or built a terrace that was never licensed, that becomes your problem the day you sign. This is the single most important difference from buying in the UK, Scandinavia or the Netherlands, and it is why due diligence here is not a formality.

What your lawyer should obtain and read

• Nota simple from the Land Registry: who legally owns the property, how it is described on the register, and whether any mortgage, embargo or charge sits on it. Registered description and physical reality do not always match.
• Community debts. Unpaid community fees for the current year and the three preceding ones follow the property. Ask for a certificate from the administrator, not a verbal assurance.
• IBI and utility accounts up to date, with the last receipts.
• Planning status: that what stands on the plot matches what was licensed, and that the licence of first occupation exists. On villas and rural plots this is where the serious problems live.
• Community documents: statutes, minutes of the last general meeting, any agreed works or special levy, and the state of the reserve fund. A pending façade or pool refurbishment is a cost you are buying into.
• Energy performance certificate and, on resales, the habitation certificate.

Is it safe to buy property in Marbella?

Yes — with the same caveat that applies anywhere: safe if the checks are done, and genuinely risky if they are not. Marbella is a mature, heavily regulated market with an established notarial and registry system, and the great majority of purchases complete without incident. The problems that do occur are almost always foreseeable ones: a property with an unlicensed extension, a plot that was never legally buildable, a development completed without its occupation licence, or a buyer who paid a deposit before anyone read the register.

Choosing a Lawyer, and How to Check Who You Are Dealing With

Use an independent lawyer who acts for you, not one introduced by the seller or by the developer’s sales office. They should be registered with the local Colegio de Abogados, and you should be able to verify that in a minute.

On fees, the common benchmark on the Costa del Sol is around 1% of the purchase price plus VAT, frequently with a minimum on lower-value purchases. What matters more than the percentage is the written scope: ask exactly what is included, whether the searches above are all covered, and who signs the power of attorney if you cannot be here at completion.

How to verify an estate agency before you engage it

• Ask whether they are acting for you or for the developer. On new developments, many “agents” are the promoter’s sales office. Neither is wrong, but you should know which one you are talking to.
• Check the registered company and tax number, and that invoices come from that entity.
• Ask about professional indemnity insurance.
• Look for independently verifiable reviews, not testimonials reproduced on their own site.

Three things should stop a purchase in its tracks: pressure to reserve before you have seen the documentation, a request to pay into a personal rather than a company or client account, and an unwillingness to put the scope of the service in writing.