Step One: Once you have found the right property, the first step is to make an offer and negotiate the price with the seller so that you can both agree on the final price.

Step Two: Once the purchase price is agreed upon, a reservation fee of €3,000 – €6,000 must be paid. When buying a new property, the reservation fee is usually €10,000. This confirms to the seller that you intend to buy the property and it can be removed from the market. At this stage, all property information is checked from the land registry documents to ensure that all details are correct.

Step Three: At this stage, the lawyer contacts the seller’s legal representative and collects all property-related documents and ensures that all municipal permits and licenses are in order. The lawyer also ensures that the property has no mortgages, charges, debts, tenants, or taxes.

Step Four: Once the lawyer has examined everything and confirmed that everything is in order to proceed with the process, the buyer and seller can sign a private purchase agreement. The agreement includes all legal descriptions of the property. It also includes all personal details of the buyer and seller, the purchase price, payment schedule, estimated date of signing the title deed, and other legal measures. At this point, the buyer usually pays 10% of the total selling price of the property.

Step Five: Finally, both parties, either with their lawyers or the lawyers between themselves with power of attorney from their clients, meet at the notary. At this stage, the title deed is signed, and the buyer pays the remainder of the agreed selling price to the seller and the keys are handed over. You are now the legal owner of the property.

Taxes and fees

When buying a property in Spain, you must remember that there are some taxes and fees associated with the purchase. The amount of tax depends on whether the purchased property is a resale or a new property. There is also a slight difference in taxation for resale properties between different regions of Spain. Here is a list of different tax rates on the Costa del Sol and Costa Blanca.

New Properties on Costa Blanca and Costa del Sol

10% VAT (IVA) (value-added tax, impuesto sobre el valor añadido) on the property’s selling price
1.5% stamp duty (IAJD Impuesto de Actos Juridicos Documentados) on the property’s selling price
2.0% fees for the notary and land registry costs
1% + VAT lawyer’s/gestoria’s fee

Resale Properties on Costa del Sol

7% transfer tax on the property’s selling price
2.0% notary fee and land registry costs
1.0% + VAT lawyer’s/gestoria’s fee

Resale Properties on Costa Blanca

10% on the property’s selling price.
+ fees for the notary, land registry, and lawyer around €3,000-€5,000 depending on the selling price.

Summary:
1: Acceptance of the selling price
2: Reservation fee
3: Lawyer ensures that all permits, licenses, and charges are in order
4: Private purchase agreement
5: Notary, title deed, and final payment