The property purchase process on the Costa Del Sol typically involves three main stages: reserving your chosen property, signing a private purchase contract and completing the sale before a Spanish notary. Before committing to the purchase, your independent lawyer should verify the property’s legal status, ownership, debts and relevant documentation. Buyers will also need an NIE identification number, funds for taxes and purchase costs, and potentially a Spanish mortgage. The process is similar for residents and non-residents, and many straightforward resale purchases take approximately 8–12 weeks, although timescales vary. With experienced local guidance and independent legal advice, buying a home in Spain can be a clear and well-organised experience.
Understanding the Property Purchase Process in Spain
Buying a property on the Costa del Sol is an exciting step, whether you’re searching for a holiday apartment in Fuengirola, a family home in Estepona or a luxury villa in Marbella.
For international buyers, however, purchasing property in another country naturally brings questions.
How much deposit will you need? When do you sign the contracts? What checks should your lawyer carry out? And when will you finally receive the keys?
The good news is that the Spanish property purchase process follows an established structure.
Once you’ve found the right home and agreed on a price, there are three principal stages to completing your purchase.
At Hello Spain Properties, we draw on more than 30 years of Costa del Sol real estate experience to help buyers understand what happens at each stage, what to expect and how to prepare.
The Three Main Stages of Buying Property on the Costa del Sol
The following table provides a useful overview of the process.
| Stage | What happens | Typical payment |
|---|---|---|
| 1. Property reservation | The property is reserved under agreed terms while legal checks progress | Often €3,000–€6,000 |
| 2. Private purchase contract | The buyer and seller agree to binding contractual terms | Commonly 10% of the purchase price in total, including the reservation deposit |
| 3. Notary completion | The public deed is signed, the balance is paid and possession is delivered | Remaining 90% of the purchase price, subject to agreed adjustments |
These figures are common examples rather than fixed legal requirements. The actual amounts, deadlines and contractual conditions depend on the individual transaction.
Your lawyer should review all documents and explain the implications before you sign or transfer money.
1. Reserving Your Property on the Costa del Sol
Once you’ve found a property you love and your offer has been accepted, the next step is usually to arrange a reservation agreement.
The purpose of the reservation is to record the agreed terms and, where expressly agreed, take the property off the market for a defined period.
How much is the reservation deposit?
On the Costa del Sol, a reservation deposit of approximately €3,000 to €6,000 is common for many resale properties, although higher-value purchases and individual agreements may involve different amounts.
The reservation agreement should clearly identify:
- The property and agreed purchase price.
- The amount of the reservation deposit.
- Who will hold the funds.
- The deadline for signing the next contract.
- Any conditions attached to the reservation.
- The circumstances in which the deposit will be refunded or retained.
Important: A reservation deposit is not automatically refundable. The agreement must clearly explain what happens if legal checks reveal a problem, finance is unavailable or either party decides not to proceed.
Where possible, arrange for your independent lawyer to review the reservation terms before payment.
2. Legal Checks and Property Due Diligence
One of the most important parts of the property purchase process on the Costa Del Sol is legal due diligence.
This is where your independent Spanish lawyer investigates the property and confirms whether there are any issues that need to be addressed before you commit to the purchase.
Typical checks include verifying:
- Legal ownership: That the seller has the legal right to sell the property.
- Land Registry information: That the registered details, ownership and charges are understood.
- Outstanding debts: Including mortgages, community fees and relevant local taxes.
- Planning and building status: Whether the property complies with applicable planning requirements and has the appropriate documentation.
- Property boundaries and alterations: Whether extensions, renovations or other changes raise legal or registration issues.
- Community arrangements: Including fees, special assessments and relevant rules for apartments or urbanisations.
Your lawyer may also review the property’s energy performance certificate and other documents relevant to the transaction.
A clean Land Registry record alone does not guarantee that every building or planning matter is in order. This is why thorough legal checks are so valuable.
Local Insight from Hello Spain Properties
Across the Costa del Sol, properties can differ considerably in age, construction, documentation and community arrangements.
An established apartment in Benalmádena may involve different practical considerations from a recently built villa in Estepona or a rural property inland from Mijas.
With more than 30 years of local real estate experience, we understand the importance of identifying these differences early.
Our role is to help buyers gather the relevant property information and work effectively with their independent legal representatives, so they can make informed decisions with confidence.
3. Signing the Private Purchase Contract
Once the appropriate legal checks have been completed and both parties are ready to proceed, the next stage is normally the private purchase contract.
In Spain, buyers often encounter a contract known as a Contrato de Arras.
This sets out the terms agreed between buyer and seller and establishes the framework for completing the transaction.
How much do you pay at this stage?
For many resale purchases, the total deposit is commonly 10% of the agreed purchase price, including any reservation deposit already paid.
For example, if you’re purchasing a property for €350,000 and have already paid a €5,000 reservation deposit, the additional amount required to reach a 10% deposit would typically be €30,000.
The contract should specify the completion date, agreed payment arrangements, what is included in the sale and any conditions that must be satisfied.
What happens if the buyer or seller withdraws?
This depends on the exact type and wording of the contract.
Under a properly agreed arras penitenciales arrangement, Article 1454 of the Spanish Civil Code generally allows the buyer to withdraw by forfeiting the deposit, while a seller who withdraws must return double the amount received.
However, not every contract described as arras has this legal effect. Different contractual structures can produce different consequences.
Your lawyer should explain the specific obligations and protections before you sign.
4. Getting Your NIE Number and Preparing Your Documents
International buyers will normally need an NIE (Número de Identidad de Extranjero), which is a Spanish identification number used for administrative and tax purposes.
You can arrange an NIE through the appropriate Spanish authorities or, in some circumstances, through a Spanish consulate or an authorised representative.
It is sensible to begin this process early rather than waiting until completion approaches.
You may also need to prepare:
- A valid passport or appropriate identification.
- Evidence of the source of your purchase funds.
- Bank account and payment details.
- Mortgage documentation, if financing your purchase.
- A power of attorney, if someone will represent you.
Spanish anti-money-laundering requirements mean that banks, legal professionals and other parties may request financial documentation.
Preparing these documents early can help avoid unnecessary delays.
5. Arranging a Mortgage for Your Spanish Property
You do not need to be a Spanish resident to apply for a property mortgage in Spain.
Many Spanish lenders consider applications from qualifying non-resident buyers, although their lending criteria can differ from those offered to residents.
Your borrowing capacity will depend on factors such as income, existing financial commitments, creditworthiness and the property’s valuation.
If you require a mortgage, it is best to investigate your options before committing to a binding purchase contract.
You should also understand what happens to your deposit if your mortgage application is unsuccessful. A financing condition should not be assumed unless it is expressly agreed in the contract.
Our guide on How to Get a Mortgage on the Costa del Sol delves deeper into mortgage applications, deposits and financing options for international buyers.
6. Understanding Property Taxes and Purchase Costs
In addition to the agreed property price, buyers must budget for taxes and transaction costs.
These vary depending on whether you’re buying a resale property or a new-build home.
For resale properties in Andalucía, the general Property Transfer Tax (ITP) rate is currently 7%, although reduced rates may apply in qualifying circumstances.
For most new residential properties purchased directly from a developer, VAT (IVA) is generally 10%, with applicable Stamp Duty (AJD) also payable.
Buyers should additionally budget for legal fees, notary fees, Land Registry expenses and any mortgage-related costs for which they are responsible.
A personalised purchase-cost calculation is always preferable to relying on a single percentage.
Our guide to Property Taxes on the Costa del Sol can help you understand the taxes, transaction costs and ongoing property expenses involved in buying a home in southern Spain.
7. Completing Your Property Purchase at the Notary
The final stage of the purchase normally takes place before a Spanish notary.
This is when the public deed of sale, known as the Escritura Pública de Compraventa, is signed.
The notary verifies relevant identities, legal formalities and aspects of the transaction, while your independent lawyer remains responsible for protecting your individual interests and advising you on the purchase.
At completion:
- The public deed of sale is signed.
- The outstanding purchase balance is paid using the agreed method.
- The parties complete the agreed handover arrangements.
- The keys and possession are normally delivered to the buyer.
Once the deed has been executed and the agreed transfer conditions are fulfilled, the buyer will normally become the legal owner.
The deed must then be submitted to the Land Registry for registration, and the relevant taxes and administrative formalities must be completed.
Can you complete without travelling to Spain?
Yes, in many circumstances.
A buyer can authorise a suitable representative, often their lawyer, to sign on their behalf using a properly prepared power of attorney.
This can be particularly convenient for international buyers who cannot travel to Spain for the completion appointment.
8. How Long Does the Property Purchase Process Take?
For a straightforward resale purchase, a completion period of approximately 8–12 weeks from reservation is a useful planning estimate.
Some transactions are completed more quickly, while others take longer.
The timescale can depend on:
- The availability of property documentation.
- The results of legal due diligence.
- Mortgage approval and valuation.
- NIE arrangements and banking requirements.
- Whether the property is occupied.
- The agreed completion date.
- Any issues requiring clarification or resolution.
New-build properties purchased off-plan follow a different timetable, with completion linked to construction progress and the necessary documentation.
Our advice: Agree a realistic completion date that gives your lawyer and any mortgage lender sufficient time to complete their work properly.
9. Buying a Resale Property Versus a New-Build Home
Although the overall legal principles are similar, there are practical differences between buying an existing home and purchasing directly from a developer.
| Consideration | Resale property | New-build property |
|---|---|---|
| Availability | Often ready for occupation after completion | May be completed or still under construction |
| Payments | Reservation, contract deposit and completion balance | Often staged payments linked to the development |
| Main checks | Ownership, debts, planning status and existing alterations | Developer documentation, permits, guarantees and completion requirements |
| Purchase taxes | Generally ITP | Generally VAT and AJD |
| Timescale | Often several weeks to a few months | Depends on the development and construction stage |
For off-plan purchases, your lawyer should verify the developer’s documentation, contractual safeguards and applicable protections for advance payments.
Neither option is inherently better. The right choice depends on your preferred property, budget and intended timescale.
10. Buying Property as a Non-Resident
Non-residents can purchase property on the Costa del Sol, including buyers from the UK and other non-EU countries.
The core purchase stages are broadly the same for residents and non-residents.
However, your residency status may affect mortgage arrangements, taxation and how long you can stay in Spain.
Importantly, buying a property does not automatically give you the right to live in Spain permanently.
Spain’s property-linked Golden Visa scheme ended in April 2025, so buyers considering relocation should explore the immigration routes that remain available.
Learn about residency possibilities and practical considerations when planning a move to Spain by reading up on your visa options on the Costa Del Sol
11. What Happens After You Receive the Keys?
Completion is an exciting milestone, but a few practical arrangements remain.
Your lawyer or authorised representative will normally help coordinate the relevant post-completion legal and registration formalities.
You may also need to arrange:
- Electricity, water and internet accounts.
- Community fee payment arrangements.
- Buildings and contents insurance.
- Direct debits for recurring property expenses.
- Key collection and property management.
- Local tax and administrative arrangements.
If you’re buying a holiday home, it may also be useful to organise a trusted local contact for maintenance and property checks while you’re away.
Taking care of these details early allows you to settle into your new home with fewer interruptions.
12. How Hello Spain Properties Helps You Buy with Confidence
The property purchase process on the Costa Del Sol becomes much easier to navigate when you understand each stage and have experienced people supporting you.
At Hello Spain Properties, our more than 30 years of Costa del Sol real estate experience help us guide buyers through the practical side of finding and purchasing a home.
From understanding your requirements and arranging viewings to negotiating with sellers and coordinating communication throughout the transaction, we aim to make the experience as straightforward and enjoyable as possible.
We also recognise the importance of independent legal advice, appropriate financial planning and clear communication between everyone involved.
Whether you’re purchasing your first holiday apartment, relocating with your family or searching for a permanent home in Spain, we’re here to help you make informed decisions.
Considering buying property on the Costa del Sol?
Contact Hello Spain Properties for friendly, personalised advice about your property search and the steps involved in purchasing your new home in Spain.
Frequently Asked Questions About the Property Purchase Process on the Costa del Sol
1. What is the property purchase process on the Costa del Sol?
The process generally involves three stages: reserving the property, signing a private purchase contract and completing the sale at a Spanish notary. Between these stages, your lawyer conducts legal checks and prepares the necessary documentation. After completion, the purchase deed is submitted for registration and the relevant taxes are paid.
2. How much deposit do I need to buy property in Spain?
Reservation deposits commonly range from €3,000 to €6,000 for many resale transactions, although amounts vary. At the private contract stage, buyers often pay a total deposit of 10% of the agreed price, including the reservation amount. These figures are negotiated rather than universally required by law.
3. Is the reservation deposit refundable in Spain?
It depends on the reservation agreement. Some contracts allow refunds in specified circumstances, such as unresolved legal issues, while others contain different conditions. A reservation payment should never be assumed to be automatically refundable. Your independent lawyer should review the wording and explain the consequences before you transfer funds.
4. How long does buying property on the Costa del Sol take?
A straightforward resale purchase often takes approximately 8–12 weeks from reservation to completion. However, mortgage arrangements, document checks, NIE applications and contractual negotiations can affect the timetable. Off-plan purchases generally take longer because completion depends on the construction schedule and relevant approvals.
5. Do I need a Spanish lawyer to buy property?
Although a lawyer is not legally mandatory for every Spanish property purchase, appointing an independent Spanish property lawyer is strongly recommended. Your lawyer can investigate ownership, debts, planning matters, contracts and registration requirements, while advising you on the legal implications of the purchase.
6. Can I buy property in Spain without being a resident?
Yes. Non-residents, including British and other non-EU buyers, can generally purchase property in Spain. You will normally need an NIE identification number and must comply with the relevant financial and legal requirements. Owning a Spanish property does not automatically provide permission to remain in Spain beyond applicable immigration limits.
7. Can I buy a property in Spain without travelling there?
Yes, many transactions can be completed using a properly authorised power of attorney. This allows a representative, commonly your lawyer, to sign relevant documents on your behalf. The authorisation must satisfy the applicable formal requirements, so it should be arranged well in advance of the planned completion date.
8. What happens if the seller pulls out of the sale?
The consequences depend on the contract. Under an agreed arras penitenciales arrangement, a seller who withdraws generally must return double the deposit received. Other types of contracts can have different remedies and obligations. Your lawyer should explain the relevant provisions before you sign.
9. What taxes do I pay when buying property on the Costa del Sol?
For resale properties in Andalucía, the general Property Transfer Tax rate is 7%, subject to qualifying reduced rates. Most new residential properties purchased from developers are subject to 10% VAT and applicable Stamp Duty. Legal fees, notary expenses and registration costs should also be included in your purchase budget.
10. When do I receive the keys to my Spanish property?
Buyers normally receive the keys when the public deed of sale is signed at the notary, the agreed purchase balance has been paid and the seller delivers possession. Any different handover arrangements should be expressly documented in the purchase contract.
11. Can I get a Spanish mortgage as a non-resident?
Yes. Some Spanish banks offer mortgages to qualifying non-resident buyers. Lending amounts, interest rates and eligibility depend on the lender, your financial circumstances and the property valuation. It is advisable to investigate financing before signing a binding purchase contract, particularly if you need mortgage approval to proceed.
