Buying Property

Should You Buy in Marbella?

Before diving into how, consider whether buying is right for you:

• You're certain you'll stay long-term (5+ years)

• You want to put down roots

• Property prices and rentals make buying financially sensible

• You've lived in the area and know where you want to be

• You're unsure about staying

• You don't know the area well yet

• You want flexibility

• Your finances are better deployed elsewhere

The Buying Process

Step 1: Get Your Finances Ready

• **NIE:** Essential for any property purchase

• **Spanish bank account:** For payments

• **Proof of funds:** Bank statements, mortgage pre-approval

• **Budget:** Purchase price + 10-15% for taxes and costs

Step 2: Find a Property

• Estate agents (most common)

• Property portals (Idealista, Kyero, Rightmove Overseas)

• Buyer's agents (they work for you, not the seller)

• Bank repossessions

• Direct from developers (new builds)

• View multiple properties to understand the market

• Visit at different times of day

• Check the neighbourhood, parking, noise

• Ask about community fees and rules

Step 3: Hire a Lawyer

Your lawyer will:

• Check the property has no debts or charges

• Verify legal status and planning permissions

• Review the contract

• Guide you through the process

• Represent you at completion

Step 4: Make an Offer

Offers are usually made through the estate agent. You can negotiate. Once agreed:

• Sign a **reservation contract** (contrato de reserva)

• Pay a small deposit (€3,000-6,000) to take property off market

• This is usually non-refundable if you withdraw without reason

Step 5: Due Diligence

Your lawyer checks:

• **Nota simple:** Property registry record showing ownership and debts

• **IBI receipts:** Property tax is paid

• **Community fees:** No outstanding debts

• **Planning permissions:** Property is legal and licensed

• **Utility bills:** No debts attached to property

This takes 2-4 weeks typically.

Step 6: Private Contract

If due diligence is satisfactory, you sign the contrato de arras (private contract):

• Outlines terms, price, completion date

• You pay 10% deposit

• If buyer withdraws, loses deposit

• If seller withdraws, returns double deposit

• Legally binding document

Step 7: Completion (Escritura)

At the notary (notario), with both parties present:

• Sign the **escritura pública** (public deed)

• Pay the balance

• Receive the keys

• Notary witnesses and authenticates

• Escritura registered at Land Registry (Registro de la Propiedad)

• Utility accounts transferred to your name

• You're now the legal owner

Costs of Buying

Budget 10-15% on top of purchase price:

• Transfer tax (8%): €32,000

• Notary: €900

• Registry: €500

• Legal fees: €5,000

• **Total costs: ~€38,400** (9.6%)

Mortgages for Non-Residents

Spanish banks lend to non-residents, but terms differ:

• **Maximum LTV:** 60-70% (vs 80% for residents)

• **Interest rates:** Variable or fixed, currently 3-5%

• **Term:** Usually up to 20-25 years for non-residents

• **Requirements:** Proof of income, existing assets, credit history

• Passport and NIE

• Proof of income (tax returns, payslips)

• Bank statements (12 months)

• Existing property valuations

• Credit report from home country

Ongoing Costs of Ownership

• IBI (property tax): €400-2,000+ depending on value

• Basura (refuse tax): €100-200

• Community fees: €1,000-5,000+ per year

• Insurance: €300-800

• Maintenance and repairs: budget 1% of value annually

• Pool/garden maintenance if applicable

• Reforms and upgrades

New Builds vs Resale

• Modern specifications and efficiency

• Warranty on structure (10 years) and finishes

• VAT instead of transfer tax (similar total)

• May take 18-24 months to complete (off-plan)

• Risk of developer issues

• What you see is what you get

• Immediate possession

• Established communities

• May need updating

• Transfer tax applies

Common Problems

Golden Visa

Buying property worth €500,000+ qualifies you for Spain's Golden Visa:

• Residency for investor and family

• Minimal time in Spain required

• Path to permanent residency/citizenship

• Property can be rented out

Note: Rules may change. Verify current requirements.