Buying property on the Costa del Sol is a dream for thousands of people from the UK, Germany, the Netherlands, the US, and beyond. But the process in Spain is different from what most foreigners expect — and the surprises tend to be expensive if you are not prepared.
This guide walks you through every step, from your first visit to picking up the keys. Follow it and you will know exactly what to expect.
Step 1: Get Your NIE Number
Before you can do anything in Spain — open a bank account, sign a contract, pay taxes — you need a NIE number (Número de Identidad de Extranjero). This is your tax identification number as a foreigner.
You can apply at a Spanish consulate in your home country, or at a police station (Comisaría) once you are in Spain. The process takes a few weeks, so apply early — ideally before you start seriously viewing properties. Without a NIE, you cannot legally complete a purchase.
Step 2: Open a Spanish Bank Account
You will need a Spanish bank account to pay for the property, taxes, and ongoing costs like community fees and utilities. Most banks will open an account for non-residents with a passport and your NIE number. Banco Sabadell, CaixaBank, and BBVA all have English-speaking services and branches along the Costa del Sol.
Step 3: Hire an Independent Lawyer
This is the most important step and the one most buyers skip — do not. You need an abogado (property lawyer) who is completely independent from the seller and the estate agent. Their job is to check that the property has no outstanding debts or charges, that planning permissions are in order, and that the title is clean.
Legal fees typically run between 1% and 1.5% of the purchase price. It is money that can save you from a catastrophic mistake. Ask your lawyer to check the nota simple — a document from the Land Registry showing who owns the property and whether there are any mortgages or liens against it.
Step 4: Make an Offer
Once you have found a property you want, you make a verbal or written offer through the agent. If accepted, the next step is signing a reservation contract and paying a small reservation fee (typically €3,000–€6,000) to take the property off the market while due diligence is carried out.
Step 5: Sign the Arras Contract
The arras is a private purchase contract between buyer and seller. You pay a deposit — usually 10% of the purchase price — and both parties commit to the sale. If the buyer pulls out after signing, the deposit is forfeited. If the seller pulls out, they must pay back double the deposit. Your lawyer should review every word of this contract before you sign.
Step 6: Arrange Your Mortgage (If Needed)
If you need a mortgage, now is the time to finalise it. Spanish banks will typically lend up to 70% of the property value to non-residents, and up to 80% to residents. With the Euribor rate now around 2.2% and expected to fall further, mortgage conditions are among the most favourable seen in years. Allow 4–6 weeks for a mortgage to be approved.
Step 7: Sign at the Notary
The final step is the escritura — the official transfer of ownership — signed in front of a Spanish notary (notario). Both buyer and seller (or their representatives with power of attorney) must be present. The notary is a neutral public official who verifies the transaction is legal. You pay the remaining balance and costs at this point, and receive the keys.
Step 8: Pay Your Taxes and Register
After signing, your lawyer will help you pay the relevant taxes and register the property in your name at the Land Registry. For resale properties, you pay ITP (Impuesto de Transmisiones Patrimoniales) — currently 7% in Andalucía. For new-builds, you pay 10% VAT plus 1.5% stamp duty. Registration typically takes 1–3 months.
What About the Golden Visa?
Spain’s Golden Visa — which granted residency to non-EU buyers purchasing property worth €500,000 or more — was abolished in April 2025. If you were considering this route, you will now need to explore alternative residency options such as the Non-Lucrative Visa. This mainly affects the luxury end of the market.
A Quick Summary of Buying Costs
- Property transfer tax (ITP): 7% of purchase price (resale) or 10% VAT + 1.5% AJD (new-build)
- Notary fees: approximately 0.5%–1%
- Land Registry fees: approximately 0.4%–0.7%
- Legal fees: approximately 1%–1.5%
- Mortgage costs (if applicable): valuation, arrangement fees
In total, budget for 10%–13% on top of the purchase price to cover all costs.
Ready to Start?
Buying property on the Costa del Sol does not have to be complicated — but it does require the right guidance. If you have questions about any stage of the process or want to know what is available in your budget right now, get in touch. We are happy to help.