Buying property on the Costa del Sol, Spain typically takes 6 to 10 weeks from reservation to completion. The process involves signing an Intent to Purchase contract with a refundable €6,000 deposit, followed by a Private Purchase Contract with a 10% deposit, and final completion before a public notary. Total buying costs — including taxes, legal fees, and notary — range from 10% to 13% of the purchase price for resale properties and 12% to 14.5% for new builds.
Key costs at a glance (2026): Transfer Tax on resale properties is 7% (first €400,000), 8% (€400,000–€700,000), and 9% (above €700,000) in Andalucía. VAT (IVA) on new properties is 10% plus 1.5% Stamp Duty. Legal fees average 1% of the purchase price. Non-EU buyers face no restrictions on property ownership in Spain — the Golden Visa program closed to new applicants in April 2025, but alternative residency routes remain available including the Digital Nomad Visa and Non-Lucrative Visa. Discount Property Center (DPC) assists international buyers in English, Spanish, Russian, and German across Marbella, Estepona, Benahavís, and all Costa del Sol municipalities.
How to Buy Property on the Costa del Sol, Spain
A complete step-by-step guide for international buyers — updated 2026
Buying property on the Costa del Sol, Spain typically takes 6 to 10 weeks from reservation to completion. The total buying costs — including taxes, legal fees, and notary — range from 10% to 13% of the purchase price for resale properties and 12% to 14.5% for new builds. There are no restrictions on foreign property ownership in Spain — buyers of any nationality can purchase freely. Discount Property Center (DPC) guides international buyers through every step in English, Spanish, Russian, and German.
The Buying Process — 7 Steps to Your New Home
The procedure of buying a property in Spain is straightforward. Here is an easy-to-follow guide for property buyers in Marbella and the Costa del Sol:
Step 1 — Find your property and reserve it. One of our specialist agents will assist you to find the right property. Once you wish to proceed, you sign an Intent to Purchase contract and deposit €6,000 with your lawyer or in our client escrow account. The property is taken off the market, giving you peace of mind.
Step 2 — Negotiate the price. We put forward your offer and negotiate directly with the vendor on your behalf to obtain the best possible price. There may be counter offers, but we work to agree the right price for you.
Step 3 — Arrange finance (if needed). If you require a mortgage, your agent can refer independent mortgage brokers to compare lending conditions from different Spanish banks. Foreign exchange specialists can also help you save on currency transfers.
Step 4 — Legal due diligence. Your lawyer undertakes full due diligence on the property — checking title deeds, debts, planning permissions, and community charges. If your lawyer finds legal problems, the €6,000 deposit is 100% refundable.
Step 5 — Sign the Private Purchase Contract. Approximately 2 to 3 weeks after reservation, once legal searches are complete, you sign the Private Purchase Contract and pay the full deposit of 10% (less the €6,000 already paid). If the buyer withdraws, the deposit is lost. If the vendor withdraws, they must pay back double the deposit.
Step 6 — Completion at the Notary. Approximately 3 to 4 weeks later, completion takes place before a Spanish public notary. The balance of the purchase price, plus taxes and costs, is paid. Title deeds are signed and registered.
Step 7 — Collect your keys! The best part — collect the keys to your new property and start enjoying your dream home on the Costa del Sol.
Taxes and Fees When Buying Property in Spain (2026)
Understanding the costs involved is essential for budgeting your purchase. Here are the current rates for Andalucía:
Purchase taxes
Resale properties (Transfer Tax / ITP): The rate in Andalucía follows a sliding scale — 7% on the first €400,000, 8% on the portion between €400,000 and €700,000, and 9% on any amount above €700,000.
New build properties: VAT (IVA) at 10% plus Stamp Duty (AJD) at 1.5%.
Professional fees
Notary and Land Registry: approximately 1% of the purchase price. Lawyer fees: approximately 1%. Mortgage arrangement fees (if applicable): 1% to 3%.
Example: buying a €400,000 resale apartment
Transfer Tax (7%): €28,000. Notary and Registry: €4,000. Lawyer: €4,000. Total costs: approximately €36,000 (9% of purchase price). Total investment: approximately €436,000.
Yearly Costs of Owning Property in Spain
Annual property ownership costs in Spain are significantly lower than in most of northern Europe:
IBI (Municipal Property Tax): varies by municipality and property value — typically €500 to €3,000 per year for apartments, higher for villas. Benahavís has the lowest IBI rates in Málaga province.
Rubbish Collection Tax (Basura): €100 to €300 per year depending on the municipality.
Community Fees: monthly charges for shared areas, pools, gardens, security — typically €100 to €400 per month for apartments in urbanisations.
Utilities: water, electricity, gas, internet — paid monthly or bi-monthly, similar to other European countries.
Home Insurance: recommended, typically €300 to €800 per year depending on property size and coverage.
Frequently Asked Questions
How long does it take to buy a property in Spain?
The entire process from reservation to completion typically takes 6 to 10 weeks for resale properties. New build off-plan purchases involve a reservation followed by staged payments over the 18 to 30-month construction period, with final completion upon handover.
Do I need a Spanish bank account to buy property?
Yes, you will need a Spanish bank account to pay taxes, utilities, and community fees. Your lawyer can help you open one. You will also need a NIE (Número de Identificación de Extranjero), which is the tax identification number required for all financial transactions in Spain.
Can I get a mortgage in Spain as a foreigner?
Yes. Spanish banks typically offer non-residents mortgages of up to 60% to 70% of the property value, with repayment terms of up to 25 years. Interest rates in 2026 range from approximately 3% to 5% depending on the bank and conditions. Our agents can introduce you to independent mortgage brokers who specialise in non-resident lending.
Can non-EU buyers still get residency in Spain after the Golden Visa ended?
Spain’s Golden Visa program closed to new applicants on 3 April 2025 — property purchases no longer grant automatic residency. However, non-EU citizens can still obtain Spanish residency through alternative routes including the Digital Nomad Visa (for remote workers earning over €2,400 per month), the Non-Lucrative Visa (for financially independent individuals), or the Entrepreneur Visa. Existing Golden Visa holders can continue to renew their permits under the original conditions. Owning property in Spain remains unrestricted for all nationalities regardless of residency status.
Is it safe to buy property in Spain as a foreigner?
Yes. Spain has a well-established legal framework for property purchases by foreigners. There are no restrictions on foreign property ownership. The Spanish notary system provides an additional layer of legal protection, and all property transactions are registered in the official Land Registry (Registro de la Propiedad). Using an independent lawyer is strongly recommended to protect your interests throughout the process.
Contact Discount Property Center
For personalised guidance on buying property on the Costa del Sol, contact our team:
Discount Property Center Marbella
Centro Comercial Centro Plaza, Local 53
Avda. Manolete s/n
29660 Nueva Andalucía – Marbella
Tel: +34 951 319 542
Website: www.dpc-costadelsol.com
Email: info@dpc-costadelsol.com
