Buying costs

Buying your home on the “Costa del Sol”

If you have decided to buy a property on the Costa del Sol this post is of interest to you. Below you can find some information on the buying process and the estimated costs for buying a property in this region.

Once you have found your dream property this is the procedure to follow:

Once the sales price has been agreed you will need to pay a deposit (normally between €6.000 and €10.000 depending on the property type) in order to ensure that the property is being reserved and taken off the market. Your lawyer should normally hold this deposit on your behalf for 2 weeks.
Once the deposit has been paid your lawyer will proceed with the legal search on the property in order to ensure that all the documents are correct.
Once this has been done you will then need to pay a 10% (deposit included in this amount) and sign the Private Purchase Contract in order to agree a final completion date.

Cash buyers (not requiring a mortgage in Spain)

  • The Notary: These fees are regulated by the government and they are usually between 500€ and 1000€. The buyer can choose the notary.
  • The registration of the property: The cost of the inscription of the property in the registry usually varies between 100€ and 500€.
  • The ITP or VAT: Depending on the type of property you are buying you will pay either an 8% or a 10%
    • If you are buying a newly built property, you will have to pay VAT on that property which is a is fixed rate of 10% .
    • If you are buying resale property, you will have to face the ITP, which is between 8% and 10% depending on the house price. There is also a reduced rate of 3.5% for those residents under 35 years old buying their main residence for a price equal or lower than €130,000.

Mortgage required

Due to the New Mortgage Law of June 2019, the expenses that the buyer must pay when purchasing have now been reduced to the following:

  • Bank valuation (only necessary if you apply for a mortgage) This is usually between 200€ and 600€.
  • Copies of the deed: They are around 20€, a very small cost compared to the costs previously assumed by the buyer (stamp duty, notary, and mortgage registration as well).

We strongly recommend that you use a qualified Lawyer to represent you in the buying process, if you do not have one we can recommend one.