The Konrad team gathers around a vintage Land Rover on the Puerto Banús harbour in golden evening light

Guide

How buying on the Costa del Sol works

The steps, the papers, the costs and the timeline, in plain words. About ten minutes to read, before you talk to anyone.

The six stages

1
Decide what you want, and what you can spend
The area, the type of home, how you will use it, and a budget that includes the taxes and fees on top of the price (see "What it costs"). If you will need a mortgage, talk to a broker now, before you start looking.
- You
- Your agent
2
Find the home
Most homes on the coast are listed by several agencies at once, and new developments are sold by many of them too. A buyer's agent searches all of them for you and views with you, or for you on video.
- Your agent
- You
3
Reserve it
When you agree a price, you sign a reservation (reserva) and pay a small deposit. The seller takes the home off the market for a few weeks while your lawyer checks it.
- You
- Your lawyer
4
Your lawyer checks everything
The title deed and the land registry entry (nota simple), the licences, the planning status, and any debts, community fees and property tax owed on the home. At the same time you get your NIE, the tax number for foreigners, and open a Spanish bank account.
- Your lawyer
5
Sign the private purchase contract
Next comes the private purchase contract (contrato privado de compraventa), often written as an arras contract. You usually pay 10% of the price, less the reservation deposit. If you pull out, you usually lose that deposit; if the seller pulls out, they usually pay you back double.
- You
- Your lawyer
6
Sign at the notary and get the keys
You, or your lawyer with a power of attorney, sign the deed (escritura) at the notary and pay the rest of the price. The keys usually change hands the same day. Your lawyer then pays the taxes and registers you as the owner. If the seller lives outside Spain, your lawyer holds back 3% of the price and pays it to the tax office.
- You
- The notary

How long it takes

2–3 days
a typical viewing trip: 2–3 months
from reservation to notary, for a resale home

Finding the home can take days or months. A new build takes as long as the building does.

What it costs

On top of the price, a resale home costs roughly 9–11% in taxes and fees, and a new build usually about 12–14%. This is what those figures are made of.

Once, when you buy

Transfer tax (ITP) on a resale home: 7% in Andalucía. It is charged on the price, or on the Catastro's reference value if that is higher.
On a new build, VAT of 10% plus stamp duty (AJD) of 1.2%, instead of transfer tax.
Your lawyer: usually 1–1.5% of the price, plus VAT.
Notary and land registry: a few hundred to a couple of thousand euros each, depending on the deed.
Admin agent (gestoría), NIE, bank account and connecting the utilities.

Every year

IBI (property tax) and rubbish collection
Community fees, in a building or an estate
Home insurance and utilities
A yearly non-resident tax return, if you don't live in Spain

The seller usually pays the town hall's tax on the land's increase in value (plusvalía) and their own agent.

Mortgage costs are extra. This is general information, not tax or legal advice. Your lawyer confirms your figures.

See a worked example for one price Every home on our site shows its own estimate

NIE, bank and mortgage

Every foreign buyer needs an NIE, the Spanish tax number for foreigners, and a Spanish bank account to pay the taxes and the bills. Your lawyer can apply for both for you.

Spanish banks lend to non-residents, usually a smaller share of the price than to residents. Settle the loan before you make an offer, so you know your real budget.

Resale, new build or off-plan

Resale

Ready now, often with a bigger plot or a better position. It needs the closest checks: licences, extensions, debts.

New build, key-ready

Finished and new, with a ten-year structural guarantee. Costs more on top of the price, because of VAT.

Off-plan

Bought before it is built, paid in stages. By law, what you pay before completion must be guaranteed by a bank or an insurer.

Which one fits you?

Renting it out

A holiday let in Andalucía needs a tourist-home registration, and both the town hall and, in an apartment building, the owners' community can limit it. Rental income is taxed in Spain even if you live elsewhere, and maybe at home too. Nobody can promise you a rental income.