Purchasing property on the Costa del Sol is a significant decision that requires careful planning and understanding of the local process. Below is a breakdown of the steps and associated costs.

1. Property Search and Offer
The first step is finding a property that suits your needs, from modern apartments in Málaga to luxury villas in Marbella.

• Costs: Typically, no initial costs unless you hire a real estate consultant (1–2 % of the purchase price).

2. Reservation Agreement
After selecting a property, you sign a reservation agreement, paying €3,000–€6,000, securing it while it’s off the market.

3. Due Diligence
A lawyer checks the legal and financial status of the property.

• Costs: Legal fees are 1–1.5 % of the purchase price.

4. Pre-Contract
A pre-contract (Arras) is signed with a 10 % deposit.

5. Notarial Deed and Registration

The process concludes with signing the deed before a notary and registering the property in your name.

• Costs:
  • Notary: €800–€1,500.
  • Registration: €400–€1,000.

6. Taxes

• Transfer Tax (ITP): 8–10 % for resale properties.
• VAT: 10 % for new builds plus a 1.5 % stamp duty.

7. Additional Costs

• Mortgage (optional): Bank fees (0.5–1 %) and valuation (€300–€500).
• Insurance: €400–€800 annually.

Example: Buying a resale property for €350,000 incurs additional costs of approximately €44,400–€46,150.

Conclusion

The process is clear but requires financial planning. Working with local professionals ensures a seamless experience.