LEGAL STEPS TO BUY PROPERTY IN COSTA DEL SOL: A DETAILED GUIDE FOR SMART BUYERS

NAVIGATING THE LEGAL FRAMEWORK IN COSTA DEL SOL

Purchasing real estate on the Costa del Sol is a strategic move—whether you're relocating, investing, or securing a second home. But if you're unfamiliar with Spain’s legal procedures, even the most appealing property can become a legal trap.

This guide breaks down every legal step involved in buying a property in Costa del Sol, giving you a roadmap grounded in law and practice, not vague assumptions.

STEP 1: OBTAIN YOUR NIE (NÚMERO DE IDENTIFICACIÓN DE EXTRANJERO)

Before signing a single document, you must have a valid NIE. This fiscal identification number is mandatory for any financial transaction in Spain—including property purchase, utilities contracts, bank accounts, and taxes.

• Apply at a Spanish police station, Spanish consulate abroad, or authorize a lawyer via power of attorney.

• Processing time: typically 1–4 weeks.

• Cost: approx. €10–€15 for the certificate, excluding legal fees.

Pro Tip: Apply early. Without an NIE, you cannot finalize the transaction—not even provisionally.

STEP 2: OPEN A SPANISH BANK ACCOUNT

Once your NIE is issued, the next legal necessity is a Spanish bank account in your name. You’ll use it for all payments related to the transaction, including deposits, taxes, and notary costs.

Requirements:

• Valid passport

• NIE

• Proof of income or origin of funds (AML compliance)

Avoid accounts opened in haste. Choose a bank familiar with foreign buyers and property transfers to avoid compliance issues.

STEP 3: ENGAGE AN INDEPENDENT LAWYER

While not legally required, a specialist property lawyer is critical in Spain.

Your lawyer will:

• Check land registry records for ownership & charges

• Confirm urban planning and zoning status

• Draft and review contracts

• Handle tax calculations

• Represent you via power of attorney if needed

Fees: typically 1% of the purchase price, though fixed-rate packages are common.

STEP 4: SIGN THE “CONTRATO DE ARRAS” (PRELIMINARY CONTRACT)

This is a legally binding deposit contract that takes the property off the market and fixes the price and terms.

Key elements:

• Buyer deposits 10% of the purchase price

• If the buyer pulls out, they lose the deposit

• If the seller pulls out, they must refund double the deposit

At this point, your lawyer should have completed due diligence on the property.

STEP 5: SIGN THE “ESCRITURA PÚBLICA DE COMPRAVENTA” (TITLE DEED)

This is the moment of truth: the official transfer of ownership before a Spanish Notary Public.

On signing day:

• The full balance (usually via banker’s cheque) is paid

• The notary reads the deed aloud (mandatory by law)

• Both parties sign the Escritura

• The buyer receives the public deed copy (Copia Simple)

The notary ensures all tax IDs, legal terms, and payment mechanisms comply with Spanish law—but doesn’t perform due diligence. That’s the lawyer’s role.

STEP 6: PAY TAXES AND REGISTER THE PROPERTY

Your lawyer will proceed to:

• Pay the transfer tax (ITP): 7% – 10% depending on property value and location (or 10% VAT + 1.5% AJD for new builds)

• Register the title deed with the Land Registry

• Notify the local cadastre and City Hall (for IBI tax records)

Failure to register may put your ownership at legal risk—even if you’ve paid in full.

STEP 7: CHANGE OVER UTILITIES AND COMMUNITY FEES

Legally, you must notify all relevant bodies of your ownership:

• Electricity, water, and gas suppliers

• Local town hall (for waste tax and residency)

• Homeowners’ association (Comunidad de Propietarios)

Most buyers authorize their lawyer to do this through power of attorney, avoiding administrative delays or service cutoffs.

TIMELINE SUMMARY

LEGAL PEACE OF MIND IS NOT OPTIONAL

In Costa del Sol, legal clarity protects your lifestyle and your investment. A smooth transaction isn’t just about choosing a sea-view apartment—it’s about avoiding fines, embargoes, or disputed ownership.

Investing in independent legal support may seem like an added cost, but in Spain’s complex property ecosystem, it's your best asset.

Ready to take the next step?

At AMA Home Spain, we guide our clients from NIE application to title registration, ensuring nothing falls through the cracks.

Call us today at +34 663 671 888 (WhatsApp available) to request your free legal checklist. We’ll connect you directly with our trusted property lawyers in Marbella.