Anyone who has considered buying a house in Spain before will know that Malaga on the Costa del Sol is one of the most popular places for foreigners to purchase second homes.
This stretch of the southern coastline is home to the ‘Golden Mile’, one of the most prestigious areas for luxury properties and lifestyles, with Marbella as the centre of attention. Whether you want a sea view apartment or a spacious villa in the hills, there’s an aspirational property to suit every preference.
However, before you start property shopping in Spain, you should make sure you understand how the process works here.
As real estate lawyers in Marbella, we’re here to explain the important points of purchasing a home in Marbella, so you can make informed decisions to secure your dream home.
1) Define what you’re looking for
Known for sunshine, clean beaches, and Mediterranean cuisine, the Marbella area has plenty of amenities that make buying a holiday retreat, permanent home, or rental property here worth the investment.
During the initial research and planning stage, you should create a shortlist of specific things you’re looking for to help narrow down your search. Choose what appeals to you the most from the following factors:
- Property type – Apartment, penthouse, duplex, townhouse, or villa?
- Location – Central, beachfront, mountain view, or close to a golf course?
- Purpose – Holiday home, permanent home, or investment property?
With a better idea of the what, where, and why, you can then establish a realistic budget and explore your financing options.
2) Consider your maximum budget
While the purchase price is the most important aspect, you’ll also need to consider additional costs, such as taxes and fees. Other key expenses may include:
- ITP (Impuesto sobre Transmisiones Patrimoniales) – Property transfer tax can be 4-10% of the deed price to transfer ownership of a resale property.
- IVA (Impuesto sobre el Valor Añadido) – Value-added tax is charged at 10% of the sale price to buyers of new properties that haven’t been sold before.
- IAJD (Impuesto de Actos Jurídicos Documentados) – Land tax is levied on the execution of the sale and mortgage deed, charging direct buyers 1-1.5%.
- Notary fees and legal fees – These necessary fees can cost 1-2% of the property value.
In addition to one-time costs, like property registration fees, you must also consider recurring expenses for the property. These will include annual property taxes and income tax, which can vary depending on the municipality.
3) Research the Marbella real estate market
The Marbella property market consistently attracts international buyers with its blend of Spanish charm and modern luxury, with its potential for appreciation making Marbella real estate an attractive investment opportunity.
There are many desirable locations in and around Marbella, each with unique characteristics. When choosing the right location to buy a property, you should consider areas such as:
- Central Marbella – for in-demand townhouses and apartments near the beach.
- Nueva Andalucia – for upscale villas with access to prestigious golf courses.
- Sierra Blanca – for elevated sea view properties not too far from the city centre.
- Puerto Banus – for luxury apartments close to the marina and shopping facilities.
- Benahavis – for exclusive estates in the hills with the ultimate private amenities.
You should research your chosen area carefully to ensure it has local amenities that match your lifestyle and offers financial sustainability. Understanding pricing trends and rental yields is also essential to make an informed investment.
4) Engage local experts to represent your interests
Navigating the Marbella real estate market by yourself will make things unnecessarily difficult, especially if you don’t speak Spanish. It’s best to find a local estate agent with extensive experience in the area.
Their inside knowledge and industry networks can help you access more in-depth information and find the most appropriate listings, guiding you through the competitive process of buying a home in Marbella.
While a real estate agent can find properties for you and put you in touch with local mortgage brokers, you will also need to consult a real estate lawyer in Marbella to assist with all the legal requirements of a property purchase.
From obtaining your Foreigner Identity Number to reviewing contracts, local lawyers like Manzanares Abogados can ensure a safe property transaction and provide ongoing tax advice.
For example, if you won’t be occupying the home full-time and becoming a Spanish resident, you’ll need to follow the rules for staying in Spain more than 90 days, which will also affect your tax liabilities.
5) Find a property and carry out legal checks
When you have defined the criteria you’re looking for and your estate agent has matched you with properties to view, you can assess each property’s quality, location benefits, and suitability for how you intend to use it.
Once you’ve found a promising property, you’ll need your English-speaking Spanish lawyer to conduct due diligence. This involves conducting thorough legal checks to ensure everything is in order and meets your expectations.
Before you can commit to making an offer on a Marbella property, you’ll need reassurance that it is properly registered, has all the necessary permits, and has no outstanding debts or legal issues.
For example, if the previous owner has not paid IBI (Impuesto sobre Bienes Inmuebles) and you buy the home, you will become liable for paying the property tax debt as the new owner.
Confirming there are no legal disputes will ensure your interests are protected for a smooth property transfer.
6) Make an offer and reserve the property
Finding the perfect property you want to buy is exciting, but when entering negotiations, you must keep a maximum offer in mind to prevent overspending. Your estate agent can help you negotiate a fair price based on current market conditions.
The negotiation margin can vary depending on the location and circumstances, but in Marbella, it’s expected that a buyer might make an offer up to 5-10% below the asking price.
To confirm that the seller is accepting your offer and that you’re serious about purchasing the property, you should sign a preliminary reservation document to take the property off the market while you finalise the contract.
This typically requires a symbolic payment to formalise your intent to proceed with buying the home, which may or may not be refundable. Your lawyer should oversee the formal agreement to ensure all the details are correct.
7) Secure financing (finalise a mortgage)
If you have the funds at your disposal to purchase the property with cash, you may not need to sign a reservation document, as you can move straight on to the final purchase contract.
However, the reservation contract comes in handy if you still need to secure financing and finalise a mortgage with a Spanish provider. Again, enlisting a local lawyer is invaluable if you don’t speak the language.
International banks may provide financing for buying real estate in Spain, but it usually comes with higher interest rates, while there are several Spanish banks that can offer competitive mortgages for non-residents. Spanish mortgage providers will typically cover up to 70% of the property value.
You’ll need to finalise your mortgage agreement in time for the closing process, so you’re ready for the final transfer.
8) Sign the private purchase contract
The private purchase contract or deposit contract (contrato de arras) specifies the conditions of the sale, with penalties if the buyer or seller fails to comply with the contract.
This includes information about both parties, the property details, and the date for completing the sale, with a deadline for signing the public deed before a notary in Spain. The buyer will also pay a deposit (10% of the property price).
If the buyer withdraws without a valid reason under the contract terms, they lose their deposit. If the seller withdraws, they must return double the value of the deposit to the buyer.
As this becomes a legally binding sale and purchase, your lawyer must review everything and verify all financial and legal documents before you proceed with closing the deal.
9) Finalise the purchase with a notary
After signing the private purchase contract, the last step is to sign the public deed, which is overseen by a local notary. As the buyer, you can choose the notary for this appointment.
The notary will ensure that all the required documents are in order and that both the buyer and seller fully understand the contract before signing. Your lawyer and the seller’s lawyer will also be present for this.
You will pay the rest of the agreed price, plus any remaining fees specified in the contract, and then the notary will register the deed in the Land Registry. This finalises the transfer of ownership to the buyer.
At this point, you will officially become the new owner, so the keys will be handed over and you can move in.
10) Set up your new home in Marbella
Of course, before you can start your new life in Marbella or get your second home ready for your first extended vacation, you must make sure that all utilities are set up in your name and you’re registered with the local authorities.
This means going to the town hall to register as the property owner for municipal tax purposes and receive a certificate, known as the Certificado de Empadronamiento or Padrón.
Even after the purchase is complete, our lawyers can help you understand legal obligations for foreigners in Spain, so you can follow the rules as a property owner in Marbella.
Expert legal guidance will be important for tax planning, whether you want to live in Marbella for more than six months a year or intend to rent out your holiday home year-round.
Speak to our real estate lawyers in Marbella
With support from local experts in Spain, buying a home in Marbella can be a seamless process. At Manzanares Lawyers, we’re here to help you make educated property investment decisions that align with your circumstances and goals.
Whether you want to invest in a new build development, buy a resale property, or even build your own house in Spain, you can rely on our multilingual team of Marbella real estate lawyers to guide you through every step of the legal process.
Simply call our Marbella office on +34 952 82 41 12 or email your questions to clientservices@manzanareslawyers.com to learn more about what we can do for you.
