Costa del Sol — Step-by-step process for national and international buyers
Sources: Andalusia Ministry of Housing, Registradores de España, Andalusia Tax Agency, Spanish Civil Code, Coastal Law 22/1988, Law 20/2015.
Buying a property on the Costa del Sol is one of the most important financial and personal decisions you can make. Whether it is a holiday home, a rental investment or a permanent residence, the region’s property market offers exceptional opportunities — but it also involves a legal, fiscal and administrative process that requires rigorous planning and professional advice.
Key facts before you start: Around 30% of property transactions in the province of Málaga are carried out by foreign nationals · Total acquisition costs range between 10% and 13% of the purchase price · The full process takes 6 to 12 weeks for resale properties and 12 to 36 months for off-plan new builds
One of the most favourable characteristics of the Costa del Sol market is its collaborative structure between agencies. Unlike other European markets where each agency manages its portfolio exclusively, on the Costa del Sol a very high proportion of agencies work in a shared network. A single agent can give you access to a very large part of the available market, with greater efficiency and more transparent negotiation.
Market structure — Costa del Sol vs. other European markets
| Feature | Costa del Sol | United Kingdom | Germany |
|---|---|---|---|
| Shared portfolios | Very common | Uncommon | Uncommon |
| Agent fees (who pays) | Seller | Seller | Buyer and seller |
| Offer process | Written and formal | Initially verbal | Notarial from the start |
| Private contract before deed | Yes (arras / PPC) | Yes (exchange) | Not usual |
| Notary required | Yes | No (solicitors) | Yes |
| Land Registry | Mandatory (30 days) | Mandatory | Mandatory |
The time invested in defining your objectives precisely before starting the search directly determines the efficiency of the process that follows. A clear brief allows your agent to filter the market intelligently and avoid irrelevant viewings.
More information: Where to buy Properties Costa del Sol.
Tax comparison: new build vs. resale in Andalusia
| Item | New build | Resale |
|---|---|---|
| Main tax | VAT 10% | Transfer Tax (ITP) 7% |
| Stamp duty (AJD) | 1.2% | 1.2% |
| Total taxes (approx.) | 11.2% | 8.2% |
| Additional guarantees | Bank guarantee + First Occupation Licence mandatory | Standard legal due diligence |
| Timeline to completion | 12–36 months (off-plan) | 6–12 weeks |
More information on taxes: Taxes and Costs Guide.    Spain Tax AgencyÂ
With your criteria defined, the next step is to explore the available market systematically. The Costa del Sol offers both in-person viewings and advanced digital tools for buyers who are not yet in Spain.
Physical viewings remain irreplaceable for evaluating the actual orientation and light of the property, the noise level of the surroundings, the quality of finishes and the general condition of communal areas. For international buyers, 3D virtual tours and live video calls allow efficient pre-selection before travelling. A well-organised prospecting visit can cover 6–10 properties in two days.
Legal preparation should begin in parallel with the property search, not after finding a property. The NIE can take up to 30 days and without it you cannot sign any purchase document or open a Spanish bank account.
In Spain, the notary authenticates the deed but does not represent the interests of either the buyer or the seller — they are a neutral public official. Your independent lawyer reviews the documentation, detects hidden encumbrances, negotiates contract conditions and ensures the transaction complies with Spanish law. Fees typically range from 1% to 1.5% of the purchase price, with a minimum of approximately €2,000.
Options for foreign buyers
| Route | Where | Timeline | Cost |
|---|---|---|---|
| In person in Spain | National Police Station | 2–15 working days | ~€10.71 |
| Spanish Consulate | Buyer’s country of residence | 15–30 days | Varies by country |
| Via power of attorney | Your lawyer in Spain | 2–15 working days | ~€10.71 + fees |
Opening a Spanish bank account is mandatory for the final payment before the notary, which is made by certified bank cheque issued by a Spanish bank. The process for non-residents takes between 1 and 3 weeks and requires: passport, NIE and proof of address abroad.
Once you have identified the property, the formal written offer is the first binding document in the process. Unlike the Anglo-Saxon market where verbal offers carry weight, in Spain the offer must be submitted in writing to have practical validity.
The agent is not obliged to withdraw the property from the market until a signed document with a deposit exists. If the property interests you, speed in formalising the reservation contract is critical.
After the offer is accepted, the reservation contract withdraws the property from the market while the legal and technical due diligence is completed prior to the arras contract.
Typical reservation contract structure — Costa del Sol
| Element | Detail |
|---|---|
| Typical deposit | €3,000 – €20,000 depending on the property price |
| Deposit held by | Lawyer’s client account or agency |
| Timeline to sign arras | Usually 2–4 weeks from reservation |
| Property on market | Withdrawn from market on signing the reservation |
| Deposit refund | Refundable if due diligence reveals serious problems. Non-refundable if buyer withdraws voluntarily |
| Applied to price | Yes, deducted from total price at the arras stage |
A professional property inspection is a relatively small investment that can prevent very costly surprises. On the Costa del Sol market, where properties with decades of intensive use are common, this stage is particularly important.
The cost ranges from €300 to €2,000 depending on the size and complexity of the property, and is carried out by a qualified technical architect. For buildings over 50 years old, it is important to request the Building Evaluation Report (IEE) and review the community minutes from the past two or three years to detect any pending special assessments.
Legal due diligence is the most critical phase of the process. Your lawyer will thoroughly review the legal situation of the property to ensure the purchase is free from hidden risks.
Legal due diligence checklist — key documentation
| Document | What it verifies | Cost / Timeline |
|---|---|---|
| Land Registry extract (Nota Simple) | Ownership, charges, mortgages, liens and easements | ~€9 / 24–48h online |
| Title deed | Registered description, floor area and boundaries | Free (seller provides) |
| First Occupation Licence (LPO) | Planning legality and habitability | Free (seller provides) |
| Cadastral certificate | Cadastral reference and concordance with registry | Free (Catastro website) |
| IBI receipts | Outstanding council tax debts | Seller provides |
| Community debt-free certificate | No outstanding community fees | Issued by property manager |
| Energy performance certificate | Mandatory energy rating for sale | €150–€400 / 1–3 days |
Properties close to the coast require special attention: Spain’s Coastal Law 22/1988 establishes a 100-metre protection zone from the shoreline, which may impose restrictions on use or prohibit extensions.
The private purchase contract, commonly known as the arras contract, is the most important bilateral commitment before the deed. From this point, both parties are bound with clear financial consequences in the event of withdrawal.
Penal deposit arras (art. 1454 CC) are the most common type on the Costa del Sol. The payment at this stage is normally 10% of the total purchase price, minus the reservation deposit already paid.
Types of arras contract under the Spanish Civil Code
| Type | If buyer withdraws | If seller withdraws |
|---|---|---|
| Penal deposit (art. 1454) | Loses the amount paid | Repays double |
| Confirmatory deposit (art. 1124) | Breach of contract claim + damages | Breach of contract claim + damages |
| Penalty deposit (arts. 1152–1155) | Loses amount + possible additional claim | Repays double + possible additional claim |
The public deed before a notary is the act that legally transfers ownership from the seller to the buyer. It is the final step before receiving the keys and the most formal part of the process.
Notary fees are regulated by official scale. For a €400,000 property they range approximately between €700 and €1,200. The buyer has the right to choose the notary.
Signing the deed is not the end of the administrative process. Within the following 30 days the relevant taxes must be settled, and the definitive registration can take up to 3 additional months.
Total acquisition taxes and costs — Andalusia 2026
| Item | New build | Resale | Settlement deadline |
|---|---|---|---|
| VAT / Transfer Tax | 10% | 7% | 30 days from deed |
| Stamp duty (AJD) | 1.2% | 1.2% | 30 days from deed |
| Notary fees | ~0.3–0.5% | ~0.3–0.5% | At the notarial signing |
| Land Registry | ~0.2–0.4% | ~0.2–0.4% | Concurrent with registration |
| Lawyer’s fees | 1–1.5% | 1–1.5% | As agreed |
| ESTIMATED TOTAL | ~12.8–13.8% | ~9.8–11% | — |
Once taxes are settled, your lawyer or gestor submits the deed to the Land Registry. The typical timeframe to receive the definitive registration entry is 4 to 12 weeks. Simultaneously, utility contracts for water, electricity and gas must be transferred or set up in the buyer’s name.
For a resale property, the process from accepted offer to deed signing typically takes 6 to 12 weeks. For off-plan new builds, the timeline extends to 12 to 36 months until key handover. Definitive Land Registry registration can take up to 3 additional months, although ownership legally transfers at the notarial signing.
You should add between 10% and 13% on top of the purchase price for taxes and costs. For resale: Transfer Tax 7% + Stamp Duty 1.2% + notary (~0.4%) + registry (~0.3%) + lawyer (1–1.5%). For new build: VAT 10% + Stamp Duty 1.2% + the same professional fees.
Yes. No prior residency or special permit is required to buy property in Spain as a foreign national. The only requirements are a NIE and a Spanish bank account for the final payment. If you cannot travel, you can grant power of attorney to your lawyer to manage the entire process on your behalf.
The NIE (Número de Identificación de Extranjero) is the mandatory tax identification number for any financial transaction in Spain. It can be obtained at the National Police Station (form EX-15, fee ~€10.71, 2–15 working days), at the Spanish Consulate in your country (15–30 days), or through a power of attorney granted to your lawyer in Spain.
Yes. Law 20/2015 requires developers to guarantee all payments made during construction through a bank guarantee or insurance bond. If the developer fails to deliver or becomes insolvent, the buyer can claim a full refund of all amounts paid.
The reservation contract (€3,000–€20,000) withdraws the property from the market while due diligence is conducted. The arras contract involves a larger commitment — typically 10% of the total price — with bilateral penalties: if the buyer withdraws, they lose the amount; if the seller withdraws, they must repay double.
The Nota Simple is an extract from the Land Registry showing the current owner, the registered description and all existing encumbrances. It costs ~€9, is available online within 24–48 hours and should be the first document requested before making any offer.
In Andalusia, resale property purchases are subject to Transfer Tax (ITP) at 7% of the declared price, plus Stamp Duty (AJD) at 1.2%. Both must be settled with the Andalusia Tax Agency within 30 days of the deed signing.
It is essential to check the property’s situation under Spain’s Coastal Law 22/1988, which establishes a 100-metre protection zone from the shoreline. Properties within this zone may have restrictions on use, prohibition on extensions, or may even be administrative concessions with a fixed term rather than full ownership.
Yes. The final payment before the notary is made by certified bank cheque issued by a Spanish bank. Opening an account as a non-resident takes 1 to 3 weeks and requires a passport, NIE and proof of address abroad.
Yes. Spain imposes no restrictions on property purchases by non-EU citizens. The process is identical: NIE, Spanish bank account and compliance with the bank’s AML requirements, which may request documentation proving the origin of funds.
For most individual buyers purchasing one or two properties, buying as a private individual is simpler and less costly. For investors with portfolios of three or more properties or complex family structures, a Spanish company (SL) may offer tax and planning advantages. A tax adviser’s analysis is always recommended before deciding.
Under penal deposit arras (art. 1454 CC), if the seller withdraws they must pay the buyer double the amount received. If the buyer paid €40,000, the seller must return €80,000. In the event of non-payment, the buyer can pursue a court claim with the possibility of a preventive annotation in the Land Registry.
Sources: Andalusia Ministry of Housing · Colegio de Registradores de España — registradores.org · Andalusia Tax Agency — atc.juntadeandalucia.es · Spanish Civil Code — Arts. 1124, 1152–1155, 1454 · Coastal Law 22/1988 · Law 20/2015 · BK Realty — internal market analysis 2026
