Essential Steps
Purchasing property in Spain is an exciting journey. This guide walks you through everything you need to know, from finding your dream home to collecting the keys.
Please note: This guide is for informational purposes only. We recommend consulting a qualified lawyer and tax adviser before purchasing property in Spain to ensure a smooth, stress-free process.
The Process
Book an appointment with Nøva Marbella for personalized property selection tailored to your needs and budget. We take the time to understand exactly what you are looking for and present you with carefully curated options.
We organize property viewings before your arrival and can assist with airport pickup. You can rely on us for a smooth, stress-free experience as we guide you through each property with detailed local knowledge.
When choosing a lawyer, find someone with expertise in your specific field of purchase. We can recommend qualified legal professionals who specialize in Spanish property transactions.
After discovering your dream home, you will sign a reservation agreement (contrato de reserva), effectively removing the property from the market. Typically, a minimum of €6,000 is paid upon signing. Your lawyer will then conduct thorough property due diligence, covering building licenses, first occupation licenses, and any other relevant legal or tax matters.
Within a two-week timeframe after due diligence, lawyers will draft a Deposit Contract or Private Purchase Contract (PPC). With a Deposit Contract, either party can withdraw (losing 10% or returning 20%), but with a PPC both parties must complete the purchase. At this stage, typically 10% for resales or 30% for new developments is paid.
To complete the purchase, you must sign the public deed of purchase (Escritura Pública) at the notary's office. You can be present in person or appoint someone through power of attorney, usually your lawyer. If you have a mortgage, a separate deed is required. Finally, you will be handed the keys, officially becoming the new homeowner.
Various taxes apply depending on whether you are buying a resale or new property. These include Transfer Tax (ITP) or VAT (IVA), notary fees, land registry fees, and legal fees. Budget approximately 10-13% of the purchase price for these additional costs.
Upon becoming the new owner, you need to update all contracts associated with the property. This includes utilities such as water and electricity, council tax (IBI), refuse tax (Basura), and community fees. Having a Spanish bank account is essential for smooth processing of payments.
Protecting Your Investment
Due diligence is a crucial legal procedure conducted by a neutral specialist to assess the property. The main objective is to verify all information provided by the seller. The process varies depending on whether you are buying from an individual or a company.
Budget Planning
The taxes you pay depend on whether you are purchasing a resale or new-build property. Budget approximately 10-13% of the purchase price for these additional costs.
| Cost Type | Rate |
|---|---|
Transfer Tax (ITP) Standard rate in Andalucía | 7% |
Notary Fees Based on property value | €500-1,800 |
Land Registry Of notary fee amount | 50-70% |
Legal Fees Plus 21% VAT on fees | 1% + VAT |
| Cost Type | Rate |
|---|---|
VAT (IVA) 21% for commercial/land | 10% |
Stamp Duty (AJD) Andalucía rate | 1.2% |
Notary Fees Based on property value | €500-1,800 |
Land Registry Of notary fee amount | 50-70% |
Legal Fees Plus 21% VAT on fees | 1% + VAT |
Example: For a €500,000 property, expect to pay between €50,000 and €65,000 in additional costs and taxes.
Good to Know
As of April 2025, Spain has officially ended the real estate investment route under its Golden Visa program. Non-EU citizens can no longer obtain residency by purchasing property valued at €500,000 or more.
Alternative investment routes remain available, including government bonds (€2M), financial assets (€1M), or qualifying business projects.
The NIE (Número de Identificación de Extranjero) is a sequential ID assigned to foreigners in Spain. It is essential for opening a bank account, getting a Spanish phone number, and completing your property purchase.
As of 2025, applications can be completed fully online with approval in just 3-7 working days. You can also apply at a Spanish Consulate abroad or at the Police Station in Spain.
Having insurance coverage for property liabilities is highly advisable. If you are buying with a mortgage, the bank will require a mandatory insurance policy that protects both the property and safeguards the interest rate until the mortgage is fully paid off.
While not legally mandatory, having a Spanish bank account is highly practical for managing property-related expenses. Most transactions, including notary fees, taxes, and utility bills, are easier to handle with a local account and direct debit setup.
For Families
The Costa del Sol has many excellent international schools regulated by the Education Department of Junta de Andalucía. They offer diverse educational programs and maintain high learning standards.
Common Questions
Typically, a minimum of €6,000 is required to sign the reservation agreement (contrato de reserva), which removes the property from the market while due diligence is conducted.
ITP (Transfer Tax) at 7% in Andalucía applies to resale properties. IVA (VAT) at 10% applies to new-build properties from developers, plus 1.2% stamp duty (AJD).
The typical timeline is 6-12 weeks from reservation to completion, allowing time for due diligence, contract preparation, and notary arrangements.
While not legally required, it is strongly recommended. A lawyer conducts due diligence, checks for debts, verifies licenses, and protects your interests throughout the purchase.
The NIE (Número de Identificación de Extranjero) is a tax ID for foreigners. As of 2025, you can apply fully online with approval in 3-7 working days, or at a Spanish Consulate or police station.
Yes, you can grant power of attorney to your lawyer to complete the purchase on your behalf. However, we recommend visiting to view properties before making a decision.
Our team is here to guide you through every step of the buying process. Get in touch to schedule a consultation and start your property search on the Costa del Sol.