Buying a property on the Costa del Sol

How the Costa del Sol market really works

The market in Marbella and the surrounding area is highly fragmented and lacks transparency. Many of the best opportunities never appear on property portals – they are shared privately between agents or sold entirely off-market.

Access to these opportunities therefore depends not on searching online, but on relationships, local market knowledge and having someone represent you on the ground. A well-prepared buyer who knows what they want is also more likely to secure the right property ahead of others.

Preparing to buy

Before entering the market, clarify the purpose of your purchase: a primary residence, a holiday home, an investment, or a combination of lifestyle and returns. This will guide your choice of location, property type and decision-making criteria.

The purchase price is not the total cost. You also need to factor in acquisition costs (applicable in Andalusia):

• –Resale properties: transfer tax (ITP) 7 %, legal fees approx. 1 %, notary and Land Registry fees approx. 0,3–0,5 % – a total of around 8,5–10 %.
• –New builds: VAT 10 %, stamp duty (AJD) 1,2 %, legal fees approx. 1 % – a total of around 11,5–13 %.
• –Certain investment structures may offer more favourable tax treatment – always consult a lawyer or tax adviser.

What you need in advance

To avoid delays in the transaction, arrange the following in advance: an NIE (Spanish tax identification number), a Spanish bank account and proof of the source of your funds. We will help you with everything – including arranging a mortgage in Spain.

An experienced agent is the central point of the entire process: providing access to off-market listings, understanding actual prices (not just asking prices), preparing a negotiation strategy and coordinating lawyers, notaries, banks and the developer.

Finding a property and understanding location value

Location is the main driver of value on the Costa del Sol – privacy, views and elevation, proximity to amenities, architectural character and building density all matter. Values can vary significantly even from one street to the next.

Size alone does not determine the price. Price per square metre, the immediate surroundings, orientation and light, privacy, property condition and renovation potential all play a role. Two properties in the same area can have entirely different values.

Take a structured approach to viewings: compare a small, carefully selected shortlist within the same segment rather than dozens of random properties. During a viewing, look beyond the design to assess build quality, layout, noise and long-term potential – properties are sold as they stand.

Resale properties versus new builds

Resale properties are purchased from the current owner, the transaction is usually faster and transfer tax of 7 % applies.

New builds include off-plan developments and key-ready properties bought directly from the developer. With projects under construction, you can often customise selected features, and payments are spread across stages. A typical structure is: a reservation deposit, a private purchase contract (usually 20–30 %), payments during construction and the balance on key handover – all payments are protected by a bank guarantee.

For key-ready new builds, the timeline is similar to that of resale properties, but VAT of 10 % + AJD of 1,2 % still applies, rather than transfer tax.

Offers and negotiation

Offers are submitted in writing and include the purchase price, timeline, conditions and what is included in the purchase (furniture, fittings and additional items). A clear, well-prepared offer significantly strengthens your position.

Negotiation is a structured process. In premium segments, the realistic scope for a discount is around 3 to 8 %, depending on the property and market conditions. A successful offer is not just about price, however – certainty, speed and a straightforward transaction also count.

Due diligence – legal checks

Once an offer is accepted, the transaction moves into the due diligence stage. This is handled by lawyers and includes verifying ownership, checking the property's planning and legal status, debts and charges, and arranging a technical inspection if needed.

The aim is to give you complete clarity before you enter into any binding commitment.

Reservation and contracts

The reservation deposit is typically around 1 % of the purchase price, the property is taken off the market and the deposit is held in escrow.

The private purchase contract is usually signed within 10–14 days, when around 10 % of the price is paid (less the reservation deposit) and the terms and timeline for the transfer are formalised.

Signing before the notary

Ownership is transferred before a notary: the balance of the price is paid, the title deed (escritura) is signed and you receive the keys.

A typical timeline from an accepted offer: immediate reservation, due diligence over 2–3 weeks, a private contract with ~10 % of the price paid, and signing before the notary usually within 4–8 weeks. Timings vary depending on the structure of the transaction.

After completion and letting

After signing, the property needs to be registered with the Land Registry, utilities transferred and recurring costs managed – we coordinate all of this for you.

The potential for short-term letting depends on the property's planning classification, community of owners' rules and local municipal licensing requirements. We always check these during due diligence, so that hidden restrictions do not disrupt your plans.

Common mistakes to avoid

• –Relying on asking prices rather than actual market values.
• –Underestimating total acquisition costs.
• –Failing to check the property's legal and planning status.
• –Overlooking differences in the immediate surroundings.
• –Taking too long to make a decision in a competitive market.