Investment guide
How to buy property on the Costa del Sol — safely
A no-nonsense guide written for UK buyers. From NIE number to notary, from taxes to financing.
The buying process — step by step
Define goals and budget
Investment, holiday home or relocation? Add 12–14% in additional costs on top of the purchase price (taxes, notary, lawyer).
Get an NIE number
The Spanish tax identification number is mandatory for any purchase. You can apply via the Spanish consulate in the UK or in Spain.
Choose an independent lawyer
Never use the agent's recommended lawyer alone. Your own abogado verifies ownership, debts, building permits and the contract.
Reservation & due diligence
A reservation contract (€6,000–€20,000) takes the property off the market. The lawyer carries out the legal and technical review.
Private contract (10%)
The Contrato Privado de Compraventa is signed with a 10% payment. Binding — you lose the deposit if you withdraw.
Notary & title transfer
The Escritura is signed at the notary, the balance is paid and the keys are handed over the same day. Registered with the Registro de la Propiedad.
Real costs
Budget 12–14% on top of the purchase price for resale property in Andalucía.
| Item | Rate | Note |
|---|---|---|
| ITP transfer tax (resale) | 7% | Andalucía (reduced from 8% in 2022) |
| VAT (IVA) new build from developer | 10% | + 1.2% AJD stamp duty |
| Notary | 0.5–1% | Depends on purchase price |
| Land registry | 0.3–0.5% | Statutory scale |
| Lawyer | 1–1.5% | + VAT. Negotiable above €2M |
| Agent | 0% | Paid by seller |
Pre-signing checklist
Nota Simple
Verify ownership and any charges in the Land Registry before reservation.
Building permits
Check the Licencia de Primera Ocupación and that any extensions are legal.
IBI & fees
Ask for receipts for the last year's property tax and community fees.
Valuation
Get an independent tasación, especially if you're applying for a Spanish mortgage (typically 60–70% LTV for non-residents).
Energy certificate
Certificado de Eficiencia Energética is legally required at sale.
Tax strategy
Consider a Spanish property holding company (SL) for tax optimisation above €3M.