Buying guide Marbella

IMPORTANT TO THINK ABOUT AND COMMON PITFALLS WHEN BUYING PROPERTY IN COSTA DEL SOL

Buying a home in Costa Del Sol does not have to be that complicated - as long as you are aware of a few important things. Already after an initial meeting, our customers tend to feel more secure about what is required to make a purchase. We are with our customers all the way - from the first viewings until you have the keys to your new dream home. We have long experience in the real estate market and collaborate with experts in finance, law, architecture, construction and maintenance.

If you have any questions now you can contact us on +34 613 175 501 or marbella@fantasticfrank.com.

3 QUICK TIPS WHEN BUYING A HOUSE OR APARTMENT ON THE COSTA DEL SOL

1. Have Your Finances Ready: Understand your budget, including the purchase price plus an estimated 10-15% for taxes and fees. Secure financing pre-approval early so you can act quickly when you find the right property.  
2. Use Independent Professionals: While many real estate agents on the Costa del Sol represent the seller (with commissions typically paid by the seller and often shared between agents ), you also have the option of engaging an exclusive buyer's agent. A buyer's agent works solely in your interest, helping you find suitable properties, negotiating the best price and terms on your behalf, and providing unbiased advice throughout the process.
3. Know the Market, Then Act: Explore different areas like Marbella's Golden Mile, Nueva Andalucía, Estepona, or Benahavís to find your fit. When you find a property that feels right and checks out legally, be prepared to move forward, as desirable properties can sell quickly. 

5 PITFALLS WHEN BUYING A HOUSE OR APARTMENT ON THE COSTA DEL SOL

Illegal Properties & Alterations:
Andalusia has a history of properties built without correct licenses or on non-urban land. Buying one can lead to fines, inability to renovate, or even demolition orders. Ensure your lawyer meticulously checks building licenses and planning compliance with the Town Hall (Ayuntamiento).  

Underestimating Total Costs:
Forgetting taxes (ITP or VAT + Stamp Duty), notary fees, land registry fees, and legal costs (adding 10-15% to the price) is a common mistake. Also, budget for ongoing costs like IBI (annual property tax), community fees, and non-resident taxes.  

Skipping Thorough Due Diligence:
Relying only on appearances is risky. Your lawyer must verify ownership, check for debts/liens via the Land Registry (Nota Simple) , and confirm legal status. Consider a technical survey for structural issues, especially for older properties.  

Ignoring Community Rules & Rental Regulations:
If buying in a complex (urbanización), review the Community Bylaws (Estatutos) and internal rules for restrictions (pets, rentals, renovations) and fees. If planning short-term rentals, be aware of strict Andalusian tourist license requirements (VUT) and new 2025 rules needing community approval.  

Signing Contracts Without Legal Review:
Never sign a reservation or preliminary contract (Contrato de Arras) or pay a significant deposit without your independent lawyer reviewing it first. These contracts are legally binding and carry financial penalties if you withdraw without cause. 

HOW DO I GO ABOUT BUYING PROPERTY ON THE COSTA DEL SOL?

1. PREPARATIONS

Where on the Coast Should I Look? The Costa del Sol offers diverse areas. Marbella is known for luxury (Golden Mile, Puerto Banús, Nueva Andalucía) , while Estepona offers a blend of traditional charm and modern developments. Benahavís is famed for exclusive country clubs , and towns like Mijas or Fuengirola offer different lifestyles and price points. Explore areas to find your best fit based on lifestyle, amenities, and budget.  

How Do I Best Finance My Purchase? Investigate loan options early. While you can explore mortgages in your home country, Spanish banks also offer mortgages to non-residents. Be aware that non-residents typically get lower Loan-to-Value ratios (around 60-70%) compared to residents (up to 80%), meaning a larger deposit (30-40% plus costs) is needed. Have your financing arranged before making offers. We can provide contacts for banks we cooperate with.

2. THE BUYING PROCESS

What is a Reservation Contract (Contrato de Reserva)?
Once you agree on a price, you typically sign a reservation contract and pay a small deposit (e.g., €3,000-€10,000) to take the property off the market temporarily. This allows your lawyer time for initial checks. This deposit is usually non-refundable if you pull out without a valid legal reason found during due diligence.  

Buyer's Responsibility to Check (Due Diligence)
Properties are generally sold "as is" (cuerpo cierto). It is crucial that your lawyer performs thorough due diligence. This includes checking the Land Registry (Registro de la Propiedad) for ownership and debts (Nota Simple) , verifying planning permissions and licenses with the Town Hall, ensuring taxes (IBI) and community fees are paid, and checking utility connections. For houses or older properties, consider hiring a technical architect or surveyor to check the physical condition.  

How Do I Get an NIE Number?
A Spanish tax identification number (Número de Identidad de Extranjero - NIE) is essential for buying property, opening a bank account, and paying taxes. You can apply at a Spanish police station (with an appointment), via a Spanish consulate abroad, or authorize your lawyer to apply for you (often the easiest way). You'll need your passport, application form (EX-15), photos, fee payment proof, and justification (like the reservation contract). Get this early in the process.  

Do I Really Need a Lawyer?
While not legally mandatory to have one represent you at the notary, hiring an independent lawyer specialized in Andalusian property law is highly recommended and standard practice for foreign buyers. They conduct due diligence, review/draft contracts (like the Contrato de Arras), handle the NIE application, advise on taxes, coordinate with the notary, ensure documents are correct, and protect your interests. Their fee (approx. 1-1.5% + VAT) is a vital investment.  

What is the Preliminary Purchase Contract (Contrato de Arras)?
After successful due diligence, a binding preliminary contract (Contrato de Arras or Contrato Privado de Compraventa) is signed. This details the property, price, payment terms, completion date, and penalties. You typically pay a 10% deposit (less the initial reservation fee) upon signing. If you (buyer) default, you lose the deposit; if the seller defaults, they must return double the deposit.  

What Happens on the Completion Date (Signing the Escritura)?
The final step is signing the public deed of conveyance (Escritura Pública de Compraventa) before a Spanish Notary Public (Notario). Buyer, seller (or representatives), and potentially bank representatives attend. The Notary verifies identities, confirms legal capacity, reads the deed, witnesses the final payment, and authenticates the document. Keys are typically handed over at this point. Your lawyer will usually accompany you.  

The Notary (Notario)
The Notary is an impartial public official who ensures the transaction is legal and the deed complies with Spanish law. They verify identities and witness the signing but do not perform the detailed due diligence or provide legal advice like your lawyer does. Their fees are regulated.  

Property Registration (Registro de la Propiedad)
After signing, the deed is sent for tax payment (ITP or AJD) and then registered at the Land Registry (Registro de la Propiedad). Registration provides the strongest legal protection, officially confirming your ownership against third-party claims. This process can take some weeks, but a provisional entry offers immediate protection. Registry fees are regulated.

3. FEES AND TAXES

What Taxes and Fees Should I Include in the Purchase? Allow approximately 10-12% of the purchase price for resale properties and 13-15% for new builds in Andalusia to cover all taxes and fees. Your lawyer can provide an exact breakdown, but key costs include:

• ITP (Transfer Tax): For resale properties in Andalusia, this is a flat 7% of the purchase price (or official value, whichever is higher). (Note: A reduced 3.5% rate exists for primary homes under €150k in small villages <3,000 inhabitants ).  
• VAT (IVA): For newly built properties bought from a developer, VAT is 10%. (21% for commercial property/land ).  
• Stamp Duty (AJD): Paid in addition to VAT on new builds. In Andalusia, it's 1.2%.  
• Notary Fees: Regulated fees, estimate around 0.5%-1% (e.g., €800-€1,500).  
• Land Registry Fees: Regulated fees, estimate around 0.4%-0.7% (e.g., €600-€1,000).  
• Legal Fees: Typically 1%-1.5% of the purchase price, plus 21% VAT.  
• Mortgage Costs (if applicable): Valuation fee (~€500) , potential bank fees.  

 What Annual Taxes and Fees Should I Expect?

• IBI (Local Property Tax): Annual tax paid to the local council, based on the property's cadastral value (lower than market value). Rates vary but often 0.4%-1.1% of cadastral value (e.g., €700/year for a €300k market value property).  
• Community Fees (Gastos de Comunidad): If in a complex with shared facilities (pool, gardens), you pay monthly/quarterly fees for upkeep. Varies greatly based on amenities (e.g., €200/month average, but can be much higher).  
• Non-Resident Income Tax (IRNR): Non-residents pay annual tax even if the property isn't rented (imputed income tax based on cadastral value, taxed at 19% for EU/EEA, 24% for others). If rented, tax is paid on actual rental income (same rates, deductions may apply for EU/EEA).  
• Rubbish Collection Tax (Tasa de Basura): Small annual municipal fee.  

Wealth Tax (Impuesto sobre el Patrimonio) / Solidarity Tax: Andalusia applies a 100% relief on regional Wealth Tax, effectively making it zero. However, a national Solidarity Tax applies to net assets over €3 million (worldwide for residents, Spanish assets for non-residents), with rates from 1.7% to 3.5%. As no regional wealth tax is paid in Andalusia, there's no deduction from the Solidarity Tax liability for assets here. Seek specialist advice if your assets approach this level.

If you have any questions now you can contact us on +34 613 175 501 or marbella@fantasticfrank.com.

Also look at what we currently have for sale in Marbella.

This information should be seen as a guide, for legal matters we always recommend to get help from a lawyer.

Are you selling your property? In Marbella we can offer the most competitive sales and marketing package in the business. We have local offices across Spain, all over Europe and also in interesting cities as Dubai and in the US - Denver, that we work tightly to find your buyer through smart marketing and with many agents with client registers. Our team of photographers and stylist puts in a great effort to make your home reach its full potential. We bet that our marketing and sales tactics are so much better you don’t need another agent.

Whether you’re in the market to buy or sell a property, feel free to come by Av. Bulevar Principe de Hohenlohe s/n CC El Capricho 8 to meet our team in person. You can also reach us on marbella@fantasticfrank.com. We assist you in a moment.