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  /  HOMEBUYER FAQs   /  Your Step-by-Step Guide to Purchasing Property on the Costa del Sol
HOMEBUYER FAQs
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Your Step-by-Step Guide to Purchasing Property on the Costa del Sol

Buying a property on the Costa del Sol is an exciting decision, whether you are looking for a holiday home,
a permanent residence, or an investment. This step-by-step guide walks you through the entire buying process
in Spain, from planning your budget to getting the keys at the notary.

1Define Your Budget & Finance Options

Before you start viewing properties, it is essential to have a clear and realistic budget. Remember that the
purchase price is not the only cost – you will also pay taxes and fees on top, usually around
10–13% of the property price depending on whether you buy a resale or a new build.

Key points to consider:

  • How much cash you have available for the deposit and costs.
  • Whether you need a Spanish mortgage, and how much a bank will lend you.
  • Current exchange rate if your savings are in another currency.
  • Your ongoing monthly costs (community fees, utilities, insurance, local taxes).
Tip: Speak to a Spanish bank or mortgage broker early. A mortgage pre-approval gives you
a clear price range and makes any offer you submit more attractive to sellers.

2Choose the Right Area on the Costa del Sol

The Costa del Sol stretches from Malaga to Sotogrande and offers very different lifestyles in each town and
neighbourhood. Think about how you will use the property: holidays, year-round living, or rental investment.

Popular considerations when choosing an area:

  • Proximity to the airport (Malaga or Gibraltar).
  • Distance to the beach, golf courses, restaurants, and services.
  • Schools and family services if you plan to live here permanently.
  • Quiet residential feel vs. lively tourist areas.
Tip: Visit at different times of the year (and at night/day) to get a realistic feel for
each area – some resorts are very seasonal, others are lively all year round.

3Shortlist Properties & Arrange Viewings

Once you know your budget and preferred areas, start creating a shortlist of properties that match your
criteria: price, size, number of bedrooms, views, and whether you prefer a new build or resale home.

What to check during viewings:

  • Orientation (sun all day, morning sun, evening sun).
  • Noise levels (roads, bars, neighbouring buildings).
  • Condition of the building and community areas.
  • Parking, storage, pool, and garden facilities.
  • Estimated community fees and local property tax (IBI).
Tip: Take photos, videos, and notes during each viewing. You may see several properties in one day
and it is easy to forget details when you compare them later.

4Appoint a Lawyer and Obtain Your NIE

A Spanish property lawyer is essential to protect your interests. Your lawyer will carry out
due diligence on the property, check for debts or legal issues, and coordinate the entire purchase process.

Your lawyer will typically:

  • Verify the seller’s ownership and any charges or mortgages on the property.
  • Check building licenses, community statutes, and legal compliance.
  • Review or draft the reservation and private purchase contracts.
  • Calculate your exact taxes and purchase costs.
  • Represent you with a Power of Attorney if you cannot be in Spain.

You will also need an NIE (Número de Identificación de Extranjero) – a Spanish tax number
required to buy a property and pay taxes.

Tip: Arrange your NIE and a Spanish bank account as early as possible to avoid delays when
you are ready to sign contracts or complete the sale.

5Make an Offer & Reserve the Property

When you find the right property, your agent will present your offer to the seller. After the price and terms
are agreed, you usually sign a reservation contract and pay a reservation fee.

Reservation stage usually includes:

  • Signed reservation document outlining the price and basic terms.
  • Reservation deposit (commonly around €3,000–€10,000 or a small percentage of the price).
  • Property is taken off the market while your lawyer completes initial checks.
Important: The reservation contract should clearly state under which conditions the deposit
is refundable or non-refundable. Always have your lawyer review before you sign.

6Private Purchase Contract (PPC)

Once legal checks are satisfactory, you move on to the Private Purchase Contract (Contrato de Arras).
This is a more detailed contract between buyer and seller and is legally binding under Spanish law.

Key features of the PPC:

  • Defines the full terms of the sale, including completion date.
  • Includes description of the property, fixtures, and any furniture included.
  • Specifies penalties if either party fails to complete the purchase.
  • Buyer typically pays a deposit of around 10% of the purchase price at this stage.
Tip: Ensure the completion date allows enough time for mortgage approval, money transfers,
and any renovations or arrangements you might need after purchase.

7Completion at the Notary

Completion takes place at a Spanish notary office. Here, the final Escritura de Compraventa
(title deed of sale) is signed and the remaining balance is paid to the seller.

On completion day:

  • Buyer, seller, or their legal representatives meet at the notary.
  • The notary reads and explains the deed (often in Spanish, with translation if needed).
  • Final payment is made (usually via bank drafts or certified cheques).
  • Keys are handed over – you officially become the new owner.
Tip: If you cannot attend in person, your lawyer can sign on your behalf with a Power of Attorney.
Make sure all bank transfers arrive in Spain in time for completion.

8Post-Completion: Utilities, Taxes & Registration

After completion, there are several administrative steps to finalise your purchase and set up your new home.

Post-completion tasks:

  • Pay any remaining taxes and notary/land registry fees.
  • Register the property in your name at the Land Registry.
  • Set up or transfer utilities (electricity, water, gas, internet).
  • Arrange home insurance and, if applicable, contents insurance.
  • Set up direct debits for local taxes and community fees from your Spanish bank account.
Tip: Many buyers ask their lawyer or a property manager to handle utility changes and
registrations, especially if they do not live in Spain year-round.

Typical Purchase Costs on the Costa del Sol

The following table gives an approximate overview of typical purchase costs when buying a property in Andalusia.
Exact percentages and amounts may vary depending on your specific case and any changes in local regulations.

Cost Item Applies To Typical Range / Notes
Transfer Tax (ITP) Resale properties Progressive % on purchase price (varies by price band and regional rules).
VAT (IVA) + Stamp Duty (AJD) New build properties IVA on purchase price + AJD on the value declared in the deed (percentages vary).
Notary & Land Registry Fees All purchases Generally a small % of the property price, depending on complexity.
Legal Fees All purchases Usually around 1% of the purchase price, plus VAT (varies by lawyer).
Mortgage Costs If financing is needed Bank opening fees, valuation, and any additional notary/registry costs, depending on the mortgage.
Total Purchase Costs All purchases Often estimated at around 10–13% of the purchase price, depending on the type of property and mortgage.

Final Tips for a Smooth Purchase

  • Work with an experienced local agent who knows the Costa del Sol market well.
  • Always use an independent Spanish property lawyer who represents only you (the buyer).
  • Get all costs in writing before signing any contract.
  • Allow enough time for due diligence and mortgage approval.
  • Think long-term: rental potential, resale value, and lifestyle needs.

With the right preparation and professional support, buying a property on the Costa del Sol can be a smooth,
safe process – and the start of a fantastic new chapter in the Spanish sun.

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