Your Journey to Owning a Home in Paradise

Buying a property on the Costa del Sol is an exciting dream for many, but the process can seem complex, especially for non-residents. Understanding the steps involved is key to a smooth and successful purchase. This guide breaks down the entire Spanish property buying process into clear, manageable stages, from your initial search to the moment you receive the keys.

The Buying Process: Step by Step

Step 1: Define Your Budget & Finances

Before you start your search, establish a clear budget. Remember to factor in purchasing costs, which are typically 10-15% of the property price. These include taxes (ITP for resale, VAT for new build), notary fees, land registry fees, and legal fees. If you need a mortgage, get pre-approval from a bank.

Step 2: Appoint a Lawyer & Real Estate Agent

Engage an independent lawyer (abogado) who specialises in Spanish property law. They will represent your interests, conduct due diligence, and handle all legal aspects. A reputable real estate agent will help you find suitable properties and navigate the local market.

Step 3: The Property Search & Viewings

This is the fun part! Your agent will arrange viewings for properties that match your criteria. Take your time, visit different areas, and ask plenty of questions about the property and community.

Step 4: Make an Offer & Reservation Agreement

Once you find your ideal property, you make a formal offer. If accepted, you will sign a Reservation Agreement (Contrato de Reserva) and pay a small deposit (typically €6,000 - €10,000) to take the property off the market while your lawyer conducts legal checks.

Step 5: Legal Due Diligence

Your lawyer will now perform crucial checks. This includes verifying the title deed (Nota Simple), checking for any outstanding debts or charges, and ensuring all building permissions and licences are in order. This step is vital for your protection.

Step 6: Private Purchase Contract (Contrato de Arras)

After successful due diligence, you sign the Private Purchase Contract. At this stage, you pay a larger deposit, typically 10% of the purchase price (less the reservation deposit already paid). This is a legally binding contract that sets a completion date.

Step 7: Get Your NIE Number & Open a Bank Account

You must have a Spanish fiscal identification number (NIE) to buy property. Your lawyer can help you obtain this. You will also need a Spanish bank account to transfer funds for the purchase and to set up direct debits for future utility bills.

Step 8: Completion at the Notary (Escritura)

On the agreed completion date, you (or your lawyer with Power of Attorney) will meet the seller at a public Notary's office. You will sign the final Title Deed (Escritura de Compraventa), pay the remaining balance, and receive the keys to your new home!

Step 9: After-Sales: Taxes, Registration & Utilities

After signing, the Notary registers the sale. Your lawyer will pay the necessary taxes on your behalf and register the property in your name at the Land Registry. They will also assist in transferring utility contracts (water, electricity, etc.) into your name.

Frequently Asked Questions (FAQ)

Budget for an additional 10% to 15% of the purchase price. This covers the Property Transfer Tax (ITP) for resale properties (7% in Andalusia), or VAT (10%) for new builds, plus notary fees, land registry fees, and legal fees.

The NIE (Número de Identificación de Extranjero) is a unique tax identification number for foreigners in Spain. It is mandatory for any major financial transaction, including buying property, opening a bank account, or setting up utilities.

The process typically takes between 1 to 3 months from having an offer accepted to completion at the notary. This can vary depending on the complexity of the sale and whether a mortgage is required.

Yes. It is very common for buyers to grant their lawyer Power of Attorney (Poder Notarial). This allows your lawyer to sign all necessary documents, including the final Title Deed, on your behalf, which is especially useful if you cannot be in Spain for the completion.