Legal Guide for Property in Costa del Sol

1. Buying a Property on the Costa del Sol

1.1. Steps to Purchase a Property

1. Research and Property Selection
   
   
   • Use real estate agents or property portals to identify properties of interest.
   
   
   • Verify the property’s legal status and condition.


2. Mortgage Arrangement (if needed)
   
   
   • Obtain pre-approval from Spanish banks.
   
   
   • Costs: Bank fees, valuation (around €500), and notary charges.


3. Reservation Agreement
   
   
   • Sign a reservation agreement to remove the property from the market.
   
   
   • Typically involves a deposit of €3,000–€6,000.


4. Hire a Lawyer
   
   
   • Essential for due diligence, drafting contracts, and liaising with parties.
   
   
   • Fees: Around 1% of the purchase price (+ VAT).


5. Due Diligence
   
   
   • Lawyer checks the property’s title, debts, charges, and compliance with planning laws.
   
   
   • Request a “Nota Simple” from the Land Registry.


6. Private Purchase Contract
   
   
   • Signed after due diligence, usually 10% of the purchase price is paid.
   
   
   • Includes terms of sale, completion date, and penalties for breach.


7. Completion at Notary
   
   
   • Finalize the sale by signing the “Escritura de Compraventa” (Deed of Sale).
   
   
   • Pay remaining purchase price.
   
   
   • Obtain the keys.


8. Registration
   
   
   • Notary sends the deed to the Land Registry.
   
   
   • Registration costs: 1%–2% of the purchase price.

1.2. Taxes and Costs for Buyers

• • Property Transfer Tax (ITP)
    
    
    • Resale property: 7%–10% depending on the price bracket.
    
    
    • New property: VAT (IVA) at 10% + Stamp Duty (1.5%).

• • Notary and Registration Fees
    
    
    • Combined cost: 1%–2% of purchase price.

• • Legal Fees
    
    
    • Approximately 1% of the purchase price (+ VAT).

• • Bank Fees
    
    
    • Mortgage arrangement fees: 0.5%–1.5% of the loan amount.

• Other Costs
  • Home insurance and utilities setup.