Buying a property in Spain is one of the most rewarding decisions an international buyer can make — and the Costa del Sol remains one of Europe’s most sought-after destinations for exactly that reason. But the Spanish property purchase process follows a distinct legal framework that differs significantly from the UK, Germany, Switzerland and most other Northern European systems.

This step-by-step guide explains every stage of the process — from setting your budget and obtaining your NIE number, through to signing at the notary and registering ownership. Whether you are buying a holiday home in Marbella, a retirement property on the Costa del Sol, or an investment villa on the New Golden Mile, the process is the same — and knowing what to expect at each step makes all the difference.

 

Obtain Your NIE Number

Before you can buy property in Spain, you must obtain a NIE (Número de Identificación de Extranjero) — your Spanish tax identification number. This is mandatory for all foreign buyers, regardless of nationality, and is required before signing any purchase contract or completing the transaction.

You can apply for your NIE at a Spanish consulate in your home country, or in person at a police station (comisaría) in Spain. Many buyers appoint a lawyer with Power of Attorney to handle this on their behalf — particularly useful if you are purchasing remotely. You will also need to open a Spanish bank account, which is used for paying deposits, taxes and the final balance.

Plan Your Budget and Financing

Before beginning your property search in earnest, define your total budget — not just the purchase price. International buyers should budget for an additional 10–13% on top of the purchase price to cover:

  • Transfer Tax (ITP): 7% in Andalucía (applies to resale properties)
  • VAT (IVA): 10% for new builds
  • Notary fees: typically €1,000–€2,500
  • Land Registry fees: typically €400–€800
  • Lawyer fees: typically 1% of purchase price

If you need financing, Spanish banks typically offer non-residents up to 60–70% LTV — so you will need at least 30–40% in cash plus the taxes and fees. Consult a mortgage broker or Spanish bank early to confirm your borrowing capacity before making offers.

Find the Right Property

Work with a local specialist agent who understands your requirements and the differences between Marbella’s micro-markets. Key factors to consider:

  • Location and area character (beachside vs. golf vs. hillside)
  • Proximity to amenities, schools, airports
  • Rental potential and tourist licence eligibility
  • Resale potential and planned infrastructure nearby
  • Community fees (gastos de comunidad) and property condition

The Marbella area includes significantly different micro-markets — from the Golden Mile and Nueva Andalucía to Marbella East and the New Golden Mile near Estepona. Each has its own price levels, buyer profiles and value dynamics.

Reservation Agreement

Once you identify the right property, a reservation agreement (contrato de reserva) is typically signed. This removes the property from the market and commits both parties to proceed. A reservation fee of €5,000–€6,000 is standard, paid to the seller or held by the agent.

Important: do not sign any reservation contract or pay any deposit without first having your lawyer verify the property’s Nota Simple — a Land Registry extract confirming ownership and any charges or debts against the property.

Private Purchase Contract (Contrato de Arras)

The Contrato de Arras is the binding private purchase contract between buyer and seller. It sets out the full purchase price, payment breakdown, completion date and all conditions of the sale.

At this stage, a deposit of 10% of the purchase price is typically paid. This contract includes an important legal protection:

  • If the buyer withdraws: the 10% deposit is forfeited
  • If the seller withdraws: they must return double the deposit 

Your lawyer should negotiate the terms carefully and ensure all conditions — including any subject-to-mortgage or survey clauses — are properly included.

While the Contrato de Arras period runs (typically 4–8 weeks before completion), your lawyer conducts full legal due diligence on the property. This covers:

  • Ownership verification (Land Registry title search)
  • Outstanding debts, mortgages or charges on the property
  • Building permits and planning compliance
  • Community fee arrears (these pass to the new owner under Spanish law)
  • Energy Performance Certificate (EPC) — legally required
  • IBI (local property tax) arrears

This step is essential and should never be skipped. In Spain, undisclosed debts and charges follow the property — not the previous owner. An independent lawyer protecting solely your interests is not optional; it is the single most important safeguard in the entire purchase process.

Notary Completion (Escritura Pública)

The purchase is finalised before a Spanish public notary (notario). Both buyer and seller — or their legal representatives via Power of Attorney — sign the public deed of sale (escritura pública de compraventa). The remaining balance of the purchase price is paid at this point, typically by banker’s draft.

The notary verifies the identities of both parties, confirms the property details, checks that all taxes have been paid, and certifies the legal transfer of ownership. The notary acts as a neutral public official — they do not represent either party’s interests exclusively.

Non-resident buyers who cannot attend in person can grant Power of Attorney to their lawyer to complete on their behalf.

Land Registry Registration

After completion, the signed deed must be registered at the Registro de la Propiedad (Land Registry). This is handled by your lawyer or the notary’s office. Registration typically takes 2–4 weeks.

Until registration is complete, your ownership is not fully protected against third-party claims. Once registered, you are the officially recognised legal owner of the property.

Following registration, you should also notify the local council (Catastro) and arrange ongoing obligations such as IBI (annual property tax), community fees, utility connections and — if applicable — non-resident income tax filings.

Buying a Property in Spain: What to Remember

The Spanish property purchase process follows a clear, structured path — and with the right preparation and professional guidance, it is entirely straightforward for international buyers.

The most important principles to remember:

  • Always appoint an independent lawyer before signing anything or paying any deposit
  • Budget 10–13% above the purchase price for taxes and fees
  • Obtain your NIE as early as possible — it is required before completion
  • Conduct full legal due diligence — debts follow the property in Spain, not the seller
  • Registration at the Land Registry is the final step that secures your ownership

The Costa del Sol and Marbella area remain among the most attractive property markets in Europe for international buyers. With local expertise on your side, the purchase process is clear, secure and rewarding. HOMEMADE Estate Marbella guides international buyers through every stage — from property search to keys in hand — with Swiss-German precision and full transparency. Contact us to start your search.