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Home Buying Guide

Essential Steps

The content presented in this document is intended solely for informational purposes.

Before embarking on the exciting journey of how to purchase a property in Marbella or navigating the purchase process for a real estate venture in Costa Del Sol.

We strongly advises all clients to engage the services of a qualified lawyer and tax adviser.

This will ensure that the property you choose complies with all legal and planning requirements and is free from any charges or encumbrances, giving you peace of mind throughout the purchase.

STEP 1

Select your property

Del Sol Estates & Investments will guide you through the purchase process, helping you select a property tailored to your unique needs and budget.

REQUEST AN APPOINTMENT:
T.: +34 691 890756
E.: [email protected]

STEP 2

The Inspection

We will coordinate all property viewings before your arrival, streamlining how to purchase a property in Costa Del Sol.

Additionally, we can assist with arranging airport pickup for your convenience.

Rest assured, we strive to ensure a seamless experience for you.

STEP 3

Legal Advice

When selecting a lawyer, it is crucial to seek someone with expertise in the specific field you require.

If needed, we can offer recommendations for qualified legal professionals to guide you through the purchase process here in Costa Del Sol.

STEP 4

Reservation / Due Diligence

After discovering your dream home, your agent will request you to sign a reservation agreement (contrato de reserva),
effectively removing it from the market.

Typically, a minimum of 6,000 EUR is paid upon signing. Your lawyer will conduct due diligence on the property,
covering building and first occupation licenses plus any other relevant legal or tax matters.

DUE DILIGENCE

Due diligence is a crucial legal procedure conducted by a neutral specialist to assess the property. It serves as a comprehensive checklist that provides all the necessary details for a successful transaction. The main objective of this procedure is to verify the information provided by the seller. The due diligence process may vary depending on whether the seller is an individual or a company.

FROM A PRIVATE PERSON

Seller’s Legal Identity
Land Registry
Property must be free of debt
Municipal Building & Habitation License
Drafting and signing private contracts & public notary documents.

FROM A COMPANY

Seller’s Legal Identity
Land Registry (Property Under Construction)
Property Must be Free of Debt
Building License (if Applicable)
Quality & Building specifications
Bank Guarantee/Insurance Policy From the developer during the construction process.
Confirmation of the 10-year guarantee (Seguro Decenal) for Structural Defects.
Revision of the purchase contract drafted by the developer.

STEP 5

Purchase Contract

After conducting thorough due diligence, within a two-week timeframe, the lawyers will draft a Deposit Contract or Private Purchase Contract, including the agreed upon price and the rest of the terms of the purchase, and set a deadline for final completion at Notary. The difference between the two is that in a Deposit Contract both parties can decide not to complete the purchase (and either losing the initial deposit or returning double in the case of the seller), but in the Private Purchase Contract (PPC) both parties have to complete or stand to lose a substantial amount of money.

At this stage, an additional percentage of the property’s agreed price must be paid, typically 10% for resale properties and 30% for new developments. Your lawyer will advise you which of the two types of contract is more suited to your particular purchase, the main difference being that while in a private purchase contract both buyer and seller commit to buy and sell respectively, in the deposit contract both parties can cancel the purchase by losing the deposit paid.

STEP 6

Public Deed

To complete the purchase, the buyer must sign the public deed of purchase (Escritura Publica) at the notary’s office. You can either be present in person or appoint someone, usually your lawyer, through a power of attorney.

In case you have a mortgage, a separate deed will be required, which the notary will carefully review. Finally, the buyer will be handed the keys, officially becoming the new owner.

STEP 7

Taxes & Expenses

a. RESALE PROPERTY

-The ITP (Impuesto de Transmisiones Patrimoniales)
-A transfer tax based on the autonomos community, in Andalucia currently it is 7% ITP (last updated 2024) is applied to all purchases.
-Notary Fees (Escritura): The fees charged by notaries usually fall within the range of 500 to 1,800 EUR per transaction
-Land Registry Fees: This fee is determined by the authorities and is usually between 50-70% of the notary fee.
-Legal Fees: 1% to 1.5% of the property purchase price + 21% VAT

b. NEW PROPERTY

-The VAT: 10% for residential properties and 21% for plots, garages & storage
-Notary Fees (Escritura): The fees charged by notaries usually fall within the range of 500 to 1,800 EUR per transaction
-Land Registry Fees:This fee is determined by the authorities and is usually between 50-70% of the notary fee
-Legal Fees: 1% to 1.5% of the property purchase price + 21% VAT

STEP 8

The Final Steps

Upon becoming the new owner, it is necessary to update all names on contracts associated with the property. This encompasses utilities such as water and electricity, council tax (IBI), rubbish tax (Basura), and community fees.
To ensure the smooth processing of payments, it is imperative to possess a bank account in Spain.

Take the next step with Del Sol Estates & Investments, and start your property journey today.