Buying property on the Costa del Sol is a life-changing decision — and one that thousands of international buyers make every year. Whether you are looking for a holiday home, a permanent relocation or a sound investment, the process is straightforward once you understand the key steps. Here is a clear guide to navigating the purchase process in 2026.
Step 1: Define Your Budget (Including All Costs)
The purchase price is only part of the equation. Buyers in Spain should budget an additional 10–13% on top of the purchase price for taxes and fees:
- IVA (VAT): 10% on new builds (21% for land/commercial)
- Stamp Duty (AJD): 1.2% on new builds in Andalusia
- Transfer Tax (ITP): 7% on resale properties in Andalusia
- Notary fees: approximately €1,000–€2,500
- Land Registry fees: approximately €500–€1,500
- Solicitor fees: typically 1% of the purchase price
Step 2: Obtain Your NIE Number
A Número de Identificación de Extranjero (NIE) is a tax identification number required for any property transaction in Spain. You can apply at a Spanish consulate in your home country or at a police station in Spain. Your solicitor can also manage this process with a power of attorney.
Step 3: Open a Spanish Bank Account
You will need a Spanish bank account to pay for your property, utilities and ongoing taxes. Most major Spanish banks — Santander, BBVA, CaixaBank — offer non-resident accounts with straightforward online opening processes.
Step 4: Engage a Local Solicitor
This is not optional — it is essential. An independent Spanish solicitor (not the developer’s solicitor) will carry out due diligence on the property: checking it is free of debts and charges, verifying planning permissions, reviewing the purchase contract, and guiding you through the entire process. Budget approximately 1% of the purchase price for solicitor fees.
Step 5: Reserve the Property
Once you have found your property, a reservation agreement and fee (typically €3,000–€10,000) takes it off the market while due diligence is carried out. This fee forms part of the eventual purchase price.
Step 6: Sign the Private Purchase Contract
Typically signed within 30 days of reservation, the private purchase contract commits both parties to the transaction. At this stage, you will usually pay 10–30% of the purchase price. If you pull out without cause, you lose your deposit. If the vendor pulls out, they must return double the deposit.
Step 7: Completion at the Notary
The final step takes place before a Spanish Notary, where you sign the escritura de compraventa (title deed), pay the balance of the purchase price, and officially become the owner. The property is then registered in your name at the Land Registry.
Post-Completion
After completion, you will need to register for local taxes (IBI — council tax), connect utilities, and consider whether you need a property management service if you will not be living in Spain full-time.
Browse our new developments in La Cala de Mijas, Marbella and off-plan properties across the Costa del Sol. Our team at Bonafide Costa is on hand to guide you through every stage of your Costa del Sol purchase. Contact us to start your journey.
