Comprehensive Guide to Buying Property in Costa del Sol

Costa del Sol, with its stunning beaches, warm climate, and vibrant lifestyle, is a dream destination for property buyers. Whether you're looking for a holiday home or an investment opportunity, here’s a step-by-step guide to purchasing property in this beautiful

Spanish region.

1. Research & Budget Planning

Before diving into the property market, define your budget. Consider not only the property price but also additional costs like taxes, legal fees, and notary expenses, which usually add up to 10-15% of the purchase price. Decide on the type of property you want and explore different locations such as Estepona, Manilva, Sotogrande and other sought-after areas. If you require financing, check your mortgage options in Spain.

2. Finding the Right Property

Use reliable real estate agents to browse listings. Visiting properties in person is crucial to assess their condition, surroundings, and amenities.

3. Hiring a Lawyer & Conducting Due Diligence

Engaging an independent lawyer who specializes in Spanish real estate law ensures a smooth transaction. Your lawyer will:

• Verify property ownership and legal status.

• Check for outstanding debts or mortgages.

• Ensure compliance with urban planning regulations.

4. Obtain an NIE (Foreigner Identification Number)

An NIE (Número de Identificación de Extranjero) is required for any property transaction in Spain. You can apply for it at a Spanish police station or via the Spanish consulate in your home country.

5. Making an Offer & Signing a Reservation Agreement

Once you find the perfect property, negotiate the price and terms with the seller. To secure the property, sign a reservation contract and pay a deposit (usually between €3,000 - €6,000).

6. Signing the Private Purchase Contract (Contrato de Arras)

This legally binding contract is typically signed within 1-2 weeks after the reservation agreement. At this stage, you pay 10% of the property price as a deposit. If you withdraw from the deal, you lose this deposit. If the seller backs out, they must return double the deposit.

7. Final Payment & Notary Signing

The final deed, known as the Escritura, is signed at a notary. This is when you:

• Pay the remaining balance and associated fees.

• Officially receive the property title and keys.

8. Registration & Utility Setup

After the notary appointment, the property must be registered in your name at the Land Registry. You should also set up utilities such as electricity, water, and internet.

Additional Costs & Taxes to Consider

• Property Transfer Tax (ITP) – 7% (for resale properties)

• VAT (IVA) & Stamp Duty (AJD) – 10% VAT + 1.2% AJD (for new builds)

• Notary & Legal Fees – 1-2%

• Land Registry Fee – 0.5-1%

  
  

Buying property in Costa del Sol is a straightforward process if you follow the right steps and work with experienced professionals. With the right guidance, you can soon own your dream home in one of Spain’s most beautiful coastal destinations.

Are you considering buying in Costa del Sol? Get in touch today!