FAQs: Buying property in Spain (Costa del Sol)
Buying a property in Spain is daunting enough, especially if you are a foreign non-resident who is unfamiliar with the procedures, Spanish property laws and language. Therefore, the key to a smooth and stress-free property purchase is planning ahead. The first step should be to engage the service of an experience real estate agency, a real estate lawyer and then prepare all of the necessary documentation in advance.
To help you understand the process and the documentation required, we have prepared a list of most frequently asked questions, covering your initial preparations, the role of a lawyer, how to find the right property, the buying process and post purchase support.
Initial preparations
- What documents do I need before I start viewing real estate on Spain’s Costa del Sol?
There are no restrictions for foreign non-residents purchasing property on the Costa del Sol. However, there are specific documentation and procedural requirements to meet before beginning the process. Spain has strict paperwork requirements, so it’s best to prepare key documents in advance (e.g. valid ID/passport, NIE number, proof of funds). Ensuring you are prepared will save time and avoid delays later in the purchase process.
Role of a lawyer in property purchases
- Should I hire a lawyer when buying property in Spain (Costa del Sol)?
Yes. It is strongly recommended to use a lawyer, as their will undertake essential due diligent, thereby reducing risks and ensuring compliance with Spanish property laws, providing peace of mind throughout the process.
- Why is legal due diligence important when buying property in Spain?
A lawyer checks for outstanding debts, liens or zoning issues tied to the property. In Spain, buyers assume the liabilities attached to the property, so these checks are a crucial step in protecting you from costly surprises.
- Will my lawyer review the purchase contract?
Yes. When you find the perfect property to buy on the Costa del Sol, your lawyer will review and negotiate the purchase contract to safeguard your interests. They will ensure terms such as price, deposit conditions and any items that should be included are accurately reflected in the contract.
- How does a lawyer protect against fraud?
A real estate lawyer’s role includes overseeing the transaction, verifying documentation and confirming the legitimacy of the deal, minimising the risk of scams. Your lawyer will also obtain and review the Nota Simple from the Spanish Land Registry to confirm the seller’s legal ownership and right to sell. They will also ensure the property complies with building and occupancy regulations and checks for necessary licences (e.g., Licencia de Primera Ocupación for new or renovated properties).
- How can a lawyer help with taxes and financial matters?
When considering buying real estate on the Costa del Sol, it is important to understand all of your legal and financial obligations. A lawyer can apprise you of the costs associated with the purchase and ongoing running costs, and also advice on taxes, costs, and deductions. For non-residents, a lawyer is crucial as they will need to manage Spain’s ‘withholding’ tax requirements and ensure full compliance with local financial laws.
- What if I don’t speak Spanish or can’t be present in Spain?
This is not a problem, &LIVING’s real estate agents will work closely with your lawyer who can act on your behalf through a Power of Attorney and provide communication in your own language, making the process easier and avoiding misunderstandings. This way you can rest assured that your interests are being looked after.
Finding the right property to buy on the Costa del Sol
- How do I start looking for a house for sale on the Costa del Sol?
Your &LIVING agent will start by discussing your requirements, establishing your wish list and red lines that are important to your family. Clarifying your needs: preferred location, property size, condition, budget and proximity to amenities, will provide a detailed criteria to ensure your property search will be focused on your exact specifications.
- Should I research areas before choosing a property?
Yes. It is a good idea to get to know the areas on the Costa del Sol, as each has its own personality and offers a unique lifestyle, price range and property type. Research in advance or ask your agent to explain the differences so you can narrow down options effectively.
- Can I rely on my agent to find properties that match my criteria?
Absolutely, &LIVING will select properties based on your specific requirements and their local expertise, and present you with a selection of properties that fall within this remit. Your feedback, will then help to inform any future recommendations. Open communication is key; sharing what you like or dislike helps your agent adjust and propose alternatives that are a better fit. There’s no set number, but most buyers view prefer to view several before choosing. It depends on how clear your preferences are and how well your agent understands your requirements.
- What additional costs should I budget for when buying real estate on Costa del Sol?
It is important to be budget aware and remember that the prices advertised on property portals and do not include buying costs, including fees and taxes. Your lawyer or agent can provide a tailored breakdown for your chosen property, but as a rule, you should expect to budget for an additional 10–13% of the purchase price, which covers:
- Transfer tax (resale properties) or VAT (new builds)
- Notary fees
- Land Registry fees
- Lawyer fees
- Other administrative costs
- What should I expect during property viewings?
Once a shortlist of properties is agreed, your agent will arrange the viewings and accompany you to each property. During the process, you’ll receive details about the property itself as well as insights into the local area, so don’t hesitate to ask questions. It is a good idea to keep an open mind, as many buyers find their preferences may change once they see the property in person. Don’t be shy about sharing your honest feedback, helping your agent to understand your likes and dislikes, makes the process of focussing on better-matched properties much quicker.
Download your full buyer’s guide from &LIVING, It’s filled with valuable insights, practical tips, and essential information to support your buying journey.
Property buying process
- How do I make an offer on a property in Spain?
When you find the right property to buy on the Costa del Sol, the first step is to submit an offer to the seller via &LIVING. It’s recommended to make a reasonable offer, if it’s too low, the seller may not respond or take you seriously. Always confirm in writing what is included in the sale (e.g., furniture, appliances). It is also important to make sure that items that are permanent attachments are included, and listed as part of the sale. If you want to include special conditions (contingencies such as repairs or completion timelines), make sure they are clearly stated in your initial offer.
- What is a reservation contract in Spain?
The reservation contract is the first formal step once an offer is accepted. It:
- Confirms the basic terms of the sale.
- Requires a deposit of €6,000 – €50,000, (depending upon the sale price) usually non-refundable unless legal issues are found.
- Ensures the property is taken off the market.
- Allows your lawyer to begin due diligence, checking key documents such as the Nota Simple, Licencia de Primera Ocupación (LPO), energy certificate, community status, tax bills, and utility bills.
- What is the Private Purchase Contract (PPC)?
When you buy property in Spain, the PPC is usually signed within 2–4 weeks of the reservation contract. It is a formal, binding contract prepared by lawyers, listing the final price and payment terms, agreed completion date and any other negotiated conditions. At this stage, you pay 10% of the purchase price (less the initial deposit). However, if the buyer withdraws, the 10% is forfeited, and similarly, if the seller cancels, they must return double the deposit as compensation.
- What happens at completion of the property purchase?
Completion takes place at a Notary’s office, and your lawyer and real estate agent will accompany you to the signing. If you can’t attend, you can grant Power of Attorney to your lawyer, who can complete the purchase on your behalf. At this time, the buyer pays the remaining balance, the Notary finalises the sale deed (escritura), the keys will be handed over, you will become the legal owner. After completion, your lawyer will register the deed at the Land Registry and transfer utilities and community bills into your name. They will also handle tax filings related to the purchase, leaving you free to move in an enjoy your new home.
Post purchase support
- Do I still get support after buying a property in Spain?
Yes. Even after you have completed the purchase process, &LIVING will still be on-hand to help with any questions or to provide any further support you may need. We can assist with furniture, alarm, rental, etc.
- What taxes do I pay when buying a property on the Costa del Sol?
It depends on whether you buy a resale (pre-owned) or new property. The tax liabilities are slightly different for resales and new developments.
- Resale properties: You pay the Property Transfer Tax (ITP), which varies by region but is usually 7% of the purchase price.
- New developments: You pay VAT (IVA) instead of ITP:
- 10% on residential property.
- 21% on land, commercial property, or parking spaces purchased separately.
- Stamp Duty (AJD), generally 1%–2% of the property value, depending on the region.
- What are the other costs when buying property on the Costa del Sol?
When buying real estate on the Costa del Sol, you should factor in the following additional fees, costs and taxes:
- Notary fees: 0.5%–1% of the purchase price.
- Land Registry fees: 0.1%–0.5% of the property value.
- Legal fees: Around 1% plus VAT (the correct legal advice is especially important for foreign buyers).
- Mortgage-related costs (if applicable):
- Arrangement fee: 0.5%–1.5% of the loan.
- Appraisal: €300–€600.
- Possible bank admin/insurance charges.
- What ongoing property taxes and costs will I pay?
As a homeowner in Spain, you’ll need to budget for annual taxes and running costs of the property. The amount you pay is dependent on the area, the value of the property and amenities including in your community fees.
- Property Tax (IBI): Annual municipal tax, 0.4%–1.3% of the cadastral value.
- Refuse Tax (Tasa de Basura): Local waste fee, usually €40–€200+ per year.
- Community Fees: Regular payments for communal services in shared buildings/complexes.
- Non-Resident Income Tax (IRNR): Annual tax on “imputed income” from your property, based on cadastral value.
- If updated in last 10 years = 1.1% base.
- If older than 10 years = 2% base.
- Non-EU residents: 24% rate.
- EU, Iceland, Norway residents: 19% rate.
- Rental Income Tax: EU, Iceland, Norway residents: 19% on net income (deducting expenses) and Non-EU residents: 24% on gross rental income (no deductions).
- Wealth Tax: Residents and non-residents are required to pay wealth tax on high-value properties that exceed a specific threshold. Rates and thresholds vary by region. (In Andalusia, it has been 100% subsidised since 2022.)
Please note, the information provided is for general guidance purposes only and is correct at the time of writing. Costs and taxation related to the purchase may depend upon the circumstances of each individual case. This information should not be considered as legal or financial advice. For personalised up to date advice, we recommend consulting with a lawyer or tax advisor.
