Would you like a buying property on the Costa del Sol? The buying process in the region Andalucía differs significantly from other regions in fiscal and legal terms. This article provides a complete overview of the roadmap, the legal due diligence, and the specific taxes (such as ITP and AJD) that apply in cities like Marbella, Malaga and Estepona.
Please note: This information is specific to the Comunidad Andalucía. The rules for Costa Blanca (Valencia) or Costa Calida (Murcia) differ.
Read more about the buying process in Costa Blanca.
1. Legal audit and Due Diligence
What does this entail?
A legal check (due diligence) is the essential investigation phase in which the legality, urban planning status and tax situation of the Costa del Sol property are verified before you sign a binding contract. Without this check, you risk buying a property with building violations or outstanding debts.
After finding a property and signing a reservation contract (where you usually deposit €3,000 - €6,000), Confianz immediately starts the investigation.
Read more about the reservation contract.
What do we check for?
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Property rights: Is the seller the sole and rightful owner?
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Urban planning: Are there illegal conversions or a demolition order on the property?
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Debts: Are there any mortgages or attachments on the property?
"Our practice shows that a significant proportion of real estate transactions in southern Spain reveal administrative irregularities." - Confianz Legal Team.
When buying on plan (new construction), we make an extra check that the promoter has planning permission as well as a valid bank guarantee to protect your deposits.
Read more about the bank guarantee in Spain.
2. Signing the contracts (Compromise)
When do you sign?
You sign the private purchase contract (compromise or Contrato de Arras) only after the legal check has produced a positive result. This contract is legally binding and sets the price, end date and conditions.
Upon signing, you usually pay 10 of the purchase price (minus the reservation already paid for). Is it a sale on plan? Then VAT is also due on these instalments.
Expert Tip: Never sign the compromise immediately without a green light from your lawyer. In Spain, you often lose your deposit if you withdraw after signing, even if there turn out to be legal defects that were not checked beforehand.
3. Preparation: NIE number
What do you need?
To buy property in Spain, an NIE (Número de Identificación de Extranjero) number is required by law for all buyers. This unique tax identification number is necessary for tax returns and notarised transfers.
Money laundering legislation (AML)
Spain has strict anti-money laundering rules. You must conclusively prove the legitimate origin of your funds.
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Evidence: Tax returns, pay slips, sales deeds of other real estate, or bank certificates.
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Confianz will guide you through the anti-money laundering process.
Read more about applying for a NIE number.
4. The Notarial Act (Escritura)
What happens at the notary?
The transfer of ownership officially takes place when you sign the notarial deed (Escritura de Compraventa) at the Spanish notary. At this point, you pay the remaining amount (plus any 10% VAT in the case of new construction). You will receive the keys immediately.
Read more about the duties of the Spanish notary.
Final checks before signing:
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Tip: before going to the notary, you still have the opportunity to check the property for visible defects.
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Certificate of conformity (New Construction): We verify that the Licencia de Primera Ocupación (residential licence) is present. You cannot connect water or electricity without this document.
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Debt-free: Upon resale, we guarantee that all outstanding charges (IBI, community charges, utilities) have been settled.
Not present?
Are you unable to travel to Spain? Through a notarised power of attorney, Confianz can sign the deed on your behalf. This can be arranged with a notary in Belgium or Spain.
Read more about a notarised power of attorney.
5. Taxes and charges in Andalucía (2024/2025)
What are the exact costs?
After the purchase, you must pay the taxes due within 30 days. Rates in Andalucía are as follows:
| Property type | Load type | Tariff (Andalucía) |
| Resale (Existing) | ITP (Transfer tax) | 7% on the purchase price |
| New building / Plan | VAT (IVA) | 10% on the purchase price |
| New building / Plan | AJD (Stamp duty) | 1,2% on the purchase price |
Total Cost Indication:
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Resale: Count on 10% - 12% on top of the purchase price (incl. notary, registration and lawyer).
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New construction: Count on 12% – 14% on top of the purchase price.
Comparison: Buying on the Costa del Sol is often more advantageous in terms of cost percentage ("Cost of Buyer") than on the Costa Blanca, where the total cost quickly exceeds 14%.
Be sure to check out the Taxes and fees when buying a property in Andalucía.
6. Registration and Aftercare
Why register?
After the notarised transfer, your title must be registered in the Spanish Registration office (Registro de la Propiedad). This makes your right enforceable against third parties and prevents the seller from reselling or encumbering the property.
Post-purchase services:
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Registration with the land registry (Catastro).
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Registration with the municipality and urbanisation.
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Contract and connect water, electricity and internet.
Frequently asked questions (FAQ)
What is the difference in purchase costs between Costa del Sol and Costa Blanca?
In the Costa del Sol (Andalucía), you pay 7% transfer tax (ITP) for existing construction. In the Costa Blanca (Comunidad Valenciana), this rate is higher, at 10%. As a result, the total purchase cost in the Costa del Sol is typically 2% to 3% lower.
Do I need a lawyer to buy a house in Spain?
Yes, this is highly recommended. The Spanish notary has a more limited duty of investigation than in Belgium or the Netherlands. A specialised lawyer or jurist performs the crucial 'due diligence' to check for illegal conversions, debts and permits. Our lawyers at Confianz can assist you.
What is a 'Licencia de Primera Ocupación' and why is it important?
This is the permit of first occupancy. It proves that the newly built house was built according to the building permit and is safe. Without this document, you cannot legally sign contracts for water, electricity and gas, and you cannot officially rent out the property.
Can I buy a house in Spain without physically being there?
Yes, this is possible through a notarised power of attorney. With this, you authorise your legal advisor (such as Confianz) to sign the deed of sale, apply for NIE numbers and make payments on your behalf.
About the author: Glenn Janssens is a lawyer specialising in Spanish real estate transactions and tax regulations. Since 2017, he has been helping Belgian and Dutch individuals and entrepreneurs safely purchase and structure real estate in Spain. He guides files from A to Z: from due diligence, ownership and tax control to estate planning and optimisation for residents and non-residents. Thanks to his years of experience, hundreds of handled files and focus on transparent communication, Glenn makes complex Spanish legislation understandable and practically applicable for every property buyer.
