Expenses, taxes
The process of buying a property in Spain, especially in Andalusia and the Costa del Sol region, consists of several steps, with different fixed and variable costs. Below is a detailed description of the process and the costs involved, so that you can plan ahead and contact us with confidence.
Procedure and payments for buying a property
We represent the interested party, or the prospective buyer, but they do not pay us anything. Our commission is covered by the seller.
- Preliminary research and needs assessment: the first step is to determine your needs and preferences for the property.
- Property selection and viewing.
- Make an offer (Oferta): When you find the property you are looking for, we will make a formal offer to the owner. If the seller accepts, a reservation contract is signed. This comes with a fee of €6,000 - so the property is not advertised to other buyers.
- Pre-contract (Contrato de Arras) and fee: 10% minus the €6,000 - usually within 2-4 weeks of the booking contract (for new developments this is 20-30% of the property price), this amount is the deposit.
- Final Contract of Sale (Escritura Pública): the final contract is signed before a notary, at which point the remaining purchase price is paid, title to the property is transferred and the buyer (or their authorised lawyer) receives the keys. Usually 2-3 months after the preliminary contract. This is a formal, nice, festive event!
Fees should only and exclusively be paid to the lawyer's account, never directly to the seller or real estate agency!
Expenses
In addition to the purchase price, the following costs should be taken into account:
Legal service fee (by the lawyer) is 1% + VAT (IVA), which includes the following:
- Verification of the property register at the land registry office
- Ownership background check: confirming the real owner, identifying any co-owners, and checking for burdens or mortgages
- Financial due diligence on the owner: verification of paid taxes, outstanding community fees, and debts to utility providers
- Review of the purchase contract prepared by the seller
- Full legal representation based on a power of attorney
Additional Costs, these may include:
- Notary fees
- Assistance with obtaining an NIE
- Registration of the ownership change with the community and utility companies
- Organization of documentation and appointment booking for bank account opening
- Setting up direct debits for recurring payments
(These services can be handled by us, managed through the lawyer's office, or arranged directly by the buyer.)
You Decide What You Need - You will receive a clear, itemized quote tailored to your preferences.
You only pay for the services you require—priced per item, not based on a percentage.
Property Taxation – For New and Resale Properties
- 7% Property Transfer Tax (ITP) - Applies when purchasing a resale (previously owned) property.
- 10% VAT (IVA) - Charged when buying a new property or a property in a development project + 1.2% Stamp Duty (AJD – Tax on Documented Legal Acts). Applies in both cases—whether the property is new or resale.
Our company will guide you every step of the way, ensuring a smooth and secure transaction.