Buying a Property on the Costa del Sol with Martin Property Marbella SL
Buying property in the Costa del Sol, Spain can be an exciting and rewarding endeavour. Known for its stunning beaches, excellent climate and vibrant culture, the Costa del Sol attracts property buyers from around the world, however navigating the local market can be a daunting task without the guidance of a local expert.
Martin Property Marbella SL offer local and overseas clients a complete and professional service and represent your best interests when dealing with the wider real estate industry, any companies related to the purchase of your property including ongoing ownership and aftercare services.
We collaborate with all reputable real estate companies and New Development projects across the Costa del Sol giving you full access to every property on the market.
This guide aims to provide you with the necessary information and steps to ensure a smooth and successfully process.
Step 1: Initial Interview – Research and Planning
- Defining Your Requirements: Determine your budget, possible locations, property type (apartment, villa, townhouse, etc.), and any specific amenities or features you desire.
- Research the Market: Explore the real estate market in the Costa del Sol. Consider factors such as property prices, market trends, and neighbourhood amenities.
- Legal Considerations: We recommend local specialists to advise on Spanish property laws and regulations, including residency requirements, purchase costs, taxes, and legal fees.
- Finance: Recommendation of a local specialist to discuss financing, explore mortgage options from Spanish banks or international lenders and to ensure you understand the terms, interest rates, and eligibility criteria.
- Budget for Additional Costs: In addition to the property price, budget for additional costs such as property transfer tax, notary fees, legal and registration fees.
Step 2: Viewing Potential Properties
- Advance Selection of properties: Based on our initial discussions, we will arrange viewings of suitable properties based on your requirements and criteria. Ideally these are all discussed and pre-approved in advance to ensure you are seeing the very best options on the market.
- Attend Property Viewings: We schedule an itinerary and accompany you on all viewings, our experienced agents take note of important details such as location, condition and amenities. Whilst we do not recommend seeing more than 5 or 6 properties per day, it is possible to see 10 or more when your time is restricted.
- Changing your mind: No matter how much advance planning you make it is very normal to have a change your mind once you have made a few local viewings. It is vital to have an experienced agent who can help you fine tune your ideas and arrange alternative viewings at short notice.
Step 3: Making an Offer
- Negotiation: Once you’ve found a property you like, we negotiate the best possible purchase price with the seller or their agent, considering factors such as market value, property condition and any necessary repairs or renovations.
- Formal Offer: Once both parties agree on the purchase price, we formalize the offer in writing with a reservation agreement to specify any conditions or contingencies, such as financing approval or property inspections. A deposit, usually of 6,000 to 10,000€ will be lodged as a sign of your serious intent.
Step 4: Purchase Process
- Engage a Lawyer: We will introduce you one of the top local law firms and generally accompany you on an initial visit to discuss all aspects of the property purchase. It is usual to grant your lawyer a Power of Attorney ( POA ) which is easily arranged at local notary, with a POA, our lawyer will review all legal documents, conduct title searches, and represent your best interests throughout the purchase process.
- Sign the Purchase Contract: Once all legal due diligence is complete, your lawyer will sign the purchase contract (contrato de arras). This contract typically requires a deposit, which is usually around 10% of the purchase price.
- Completion: On the agreed-upon closing date, finalize the property purchase by signing the deed of sale (escritura de compraventa) before a notary public. Pay the remaining balance and any applicable taxes and fees.
Step 5: Post-Purchase Considerations
- The following steps will be organised by your lawyer, and it is usual to arrange a Power of Attorney so they can be actioned in your absence. Martin Property Marbella can recommend an excellent law firms for your consideration.
- Property Registration: Register the property in your name with the Spanish Land Registry.
- Utilities and Services: Arrange for the transfer of utilities such as water, electricity, and gas into your name.
- Tax Obligations: Understand your tax obligations as a property owner in Spain, including property taxes (IBI), income tax, and wealth tax.
- Residency: If you plan to reside in Spain permanently, consider applying for residency and obtaining a Spanish NIE (Número de Identificación de Extranjero) for tax and legal purposes.
Conclusion:
Buying a property on the Costa del Sol can be a rewarding investment and lifestyle choice. By conducting thorough research, seeking professional advice, and understanding the legal and financial aspects of the buying process, you can navigate the process with confidence and successfully purchase your dream property in this stunning region of Spain.
