Step one: When you have found the right property, the first step is to bid and negotiate the price with the seller for you both to agree the final price.

Step two: When the buying price has been agreed, a 3000€ - 6000€ reservation deposit needs to be paid. When buying a new development property, the reservation deposit is usually 10 000€ This confirms for the seller that you are going to buy the property and it can be taken off the market. At this point all the information of the property is reviewed from the documents from land registry to make sure all information is correct.

Step three: At this point a solicitor will be contacting the vendor’s legal representative and gathers all documentation of the property and ensures that all permits and licenses from the municipality are alright. The solicitor will also make sure that there are no mortgages, costs, debt, tenants or taxes pending for the property.

Step four: When the solicitor has investigated everything, and confirmed that everything is in place in order to continue the process the buyer and seller can sign the private purchase contract. The contract contains all the legal descriptions of the property. It also includes all the personal details of the buyer and seller, purchase price, schedule of payments, estimated date of signing the title deed and other legal clauses. At this point the buyer usually pays 10% of the total sales price of the property.

Step five: Finally, both parties either with their solicitors or the solicitors on their own with a power of attorney from their clients meet with the notary. At this point the title deed is being signed and the buyer pays the remainder of the agreed sales price to the seller and the keys will be handed over. You are now the legal owner of the property.

Taxes and fees

When you buy a property from Spain, you must remember that there are some taxes and fees to complete the purchase. The amount of tax depends on whether the purchased property is a resale or new development. There is also a slight difference between the taxation of resale properties between different areas in Spain. Here is a list of the different amount of taxes in Costa del Sol and Costa Blanca.

NEW DEVELOPMENTS in Costa Blanca and Costa del Sol

10 % VAT (IVA) (Impuesto sobre el valor añadido) of the sales price of the property

1,5 % stamp duty (IAJD lmpuesto de Actos Juridicos Documentados) of the sales price of the property

~ 2,0 % fees to the notary and land registry

1% + VAT to the solicitor


Costa del Sol

7% transfer fee of the sales price of the property

~ 2,0 % fees to the notary and land registry

 1% + VAT to the solicitor

 Costa Blanca

10% transfer fee of the sales price of the property.

+ fees to the notary, land registry and solicitor approximately 3000-5000€ depending on the sales price.


A summary:

1: Agreeing with the sales price

2: Reservation fee

3: Solicitor secures that all the permits, licenses and costs are in order

4: Private purchase contract

5: Notary, title of deeds and the final payment