Your Guide to Buying Property in Spain
Buying a property on the Costa del Sol is, for many people, the fulfilment of a long-held dream. At the same time, the buying process in Spain differs in several respects from that in other European countries.
At Right Casa, we guide you from your first property search through viewings and negotiations to a successful purchase at the notary. Where helpful, we work with experienced, independent lawyers, financing specialists and other professionals who can support you with the legal and financial aspects of your property purchase. Here, we explain step by step how a property purchase in Spain typically unfolds.
In Short
- The property search starts with clear criteria, a budget and financing clarified in advance.
- Once you've chosen a property, viewings, an offer and negotiation follow.
- A reservation secures the property, followed by legal due diligence.
- The private purchase contract sets out the deposit and terms before the notary appointment.
- Ownership is officially transferred at the notary.
Preparing your property search
Before you start viewing properties, it's worth thinking through your key criteria:
- Desired location
- Apartment, townhouse or villa
- Number of bedrooms
- Outdoor areas such as a terrace or garden
- Sea view or other specific requirements
- Proximity to the beach, a golf course or shops
- Personal use or investment
- Overall budget
When doing so, consider not just the purchase price, but also the taxes and additional costs involved in buying. If you need financing, we recommend discussing your options with a bank or an independent financing advisor as early as possible. This way, you'll know what budget is actually available to you before starting your concrete property search.
Finding the right property
Once we know what you're looking for, we search for suitable properties together with you. You're not limited solely to properties offered directly by Right Casa. Thanks to our collaboration with other agents and our extensive property network on the Costa del Sol, we can also show you numerous properties from other providers. What this means for you: a single point of contact and access to a large part of the property market on the Costa del Sol.
Viewings & selection
We organise viewings of suitable properties and help you realistically compare the different options. Beyond the property itself, factors such as the following should also be considered:
- Exact location and surroundings
- Orientation and sunlight exposure
- Condition of the property
- Communal facilities
- Ongoing community fees
- Possible renovation work
- Resale potential
- Rental potential, if relevant
Especially if you don't yet know the Costa del Sol very well, our local market knowledge can help you better assess the differences between individual areas.
Offer & negotiation
Once you've found your dream property, we support you in submitting an offer and negotiating with the seller. Aside from the purchase price, other points can also form part of the negotiation, for example:
- Desired handover date
- Furniture included
- Payment terms
- Special conditions from the buyer or seller
As soon as both parties have reached a basic agreement, the purchase process can begin.
Reserving the property
In many cases, a reservation agreement is signed first. The buyer usually pays an agreed reservation amount. The property is then taken off the market for a certain period while the next steps are prepared. The amount of the reservation payment and the conditions for a possible refund can vary from case to case. The reservation agreement should therefore be carefully reviewed — ideally by your independent lawyer — before you sign it or transfer any money.
Legal due diligence
One of your lawyer's most important tasks is the legal review of the property. Among other things, this checks:
- Who the rightful owner is
- Whether the property is correctly registered in the land registry
- Whether mortgages or other charges exist
- Whether there are outstanding taxes or community fees
- Whether the relevant permits and documents are in place
- Whether there are any legal particularities that need to be resolved before the purchase
Which checks are required depends on the specific property. This is precisely why we recommend that every buyer instruct an independent Spanish lawyer to review and handle the purchase.
Private purchase contract
Once the legal review has been successfully completed, a private purchase contract is often signed. For many resale properties, a deposit of around 10% of the agreed purchase price is paid at this point in total, with any reservation amount already paid usually taken into account accordingly. The contract sets out, among other things, the purchase price, payment terms, completion date, and the rights and obligations of buyer and seller. The exact contract structure should always be reviewed by the lawyers involved and tailored to the specific purchase.
Completion at the notary
The final property purchase is completed by signing the public deed of sale — the Escritura Pública de Compraventa — before a Spanish notary. At this point, the remaining purchase price is usually paid and the property is handed over to the buyer. The change of ownership is then filed with the relevant land registry. Your lawyer or gestoría can also take care of further formalities, such as paying the corresponding taxes and transferring utility contracts.
Congratulations — you are now the owner of your property in Spain.
What taxes apply when buying property in Andalusia?
The taxes payable depend in particular on whether you're buying a resale property or a new build.
Resale properties
Buying a resale property in Andalusia generally incurs Spanish property transfer tax — Impuesto sobre Transmisiones Patrimoniales (ITP). The general tax rate in Andalusia is currently 7% of the tax-relevant value. Under certain legal conditions, reduced tax rates may apply. Your lawyer or tax advisor can check whether this applies in your individual case.
New-build properties
Buying a new property directly from the developer generally does not incur ITP. Instead, 10% VAT (IVA) is usually charged on residential properties, along with the corresponding stamp duty (AJD). Different tax rates and rules may apply to plots, commercial properties and other property types. We therefore recommend having the specific tax burden for your property calculated before the purchase.
Financing a property in Spain
International buyers can generally also apply for a Spanish mortgage to finance a property. How much a bank will finance depends, among other things, on your financial situation, income, tax residency and the value of the property. If you need financing, you should find out about your financing options ideally before signing any binding purchase contracts. We're happy to put you in touch with experienced financing specialists on request.
Ongoing costs after the purchase
After buying a property, various ongoing costs arise that you should factor into your budget planning. These can include:
IBI (Impuesto sobre Bienes Inmuebles)
This municipal property tax is usually charged annually. The amount depends, among other things, on the cadastral value of the property and the relevant municipality.
Community fees
For apartments and properties within an owners' community, community fees are usually charged for the upkeep and maintenance of shared areas — for example gardens, pools, lifts or security facilities.
Refuse collection fees
Depending on the municipality, separate fees for waste collection may apply.
Insurance
Building and contents insurance is advisable and may in some cases be a requirement if you're financing the purchase through a bank.
Depending on your personal situation and how you use the property, further tax obligations may also arise.
We support you throughout your property purchase
At Right Casa, our work doesn't end once we've shown you a property. We accompany you throughout the entire purchase process and help you find the right contacts for legal, financial and practical matters. We're also here for you after the purchase, and can connect you, if needed, with reliable contacts for renovation, furnishing, property management and other services on the Costa del Sol.
Free Buyer's Guide
Download our comprehensive Buyer's Guide as a PDF — with all the key information about buying property on the Costa del Sol.
Would you like to buy a property on the Costa del Sol?
Note: The information on this page is provided for general guidance only and does not constitute legal, tax or financial advice. Tax rates and legal regulations may change. Please have your individual situation reviewed by a qualified legal or tax advisor before purchasing a property.