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Purchase Process

Purchase Process

Guide to Buying Property in Spain

Buying a property is a significant financial decision, but with the right guidance, it can be a smooth and rewarding process. iHOME Property has been selling real estate in Spain since 2003, specializing in San Pedro de Alcántara and surrounding areas. Our team will assist you throughout the purchase process, and if you do not already have legal representation, we highly recommend hiring a lawyer. We can recommend experienced legal professionals based on your language preference.

Why Choose iHOME Property?

Access to thousands of properties through a single point of contact

Expert guidance throughout the purchase process

Partnerships with reputable lawyers to ensure legal compliance

Steps in the Purchase Process

Step 1

Property Selection

In Spain, there is no need to register with multiple agents. With over 300 real estate agencies operating along the Costa del Sol, iHOME Property simplifies the search by being a member of a multi-listing service, granting access to thousands of properties across the coast. By registering with us, you gain access to a wide range of properties through a single point of contact, saving you from repeated calls and redundant information sharing. We guide you through the property selection process, ensuring your chosen property meets your preferences and budget.

Step 2

Viewings

We help coordinate property viewings and, if needed, can arrange transport for a seamless experience.

Step 3

Legal Advice

If you don’t already have a lawyer, we strongly recommend hiring one to ensure your purchase complies with all legal and planning requirements. We work with many experienced lawyers and can recommend one based on your language preferences and specific needs.

Step 4

Reservation & Due Diligence

Once you have found your ideal property and the offer is accepted, a reservation deposit of €6,000 to €10,000 is typically required to secure the purchase. A reservation contract will be drawn up, stating:

  • Buyer and seller details
  • Agreed sale price
  • Any conditions related to the purchase

At this stage, your lawyer will conduct due diligence, verifying:

  • Legal ownership of the property
  • Outstanding debts or charges (if any)
  • Building permits and habitation licenses

For non-residents, your lawyer will also assist with obtaining an NIE number (a tax identification number for non-residents) and help open a Spanish bank account, both of which are required for property ownership and utility bill setup.

Step 5

Private Purchase Contract

Once the legal checks are complete, a private purchase contract is signed, typically requiring a 10% deposit (minus the reservation deposit).

This contract confirms:

  • Buyer and seller details
  • Agreed purchase price
  • Completion date for final transfer

If the buyer withdraws, they forfeit their deposit.

If the seller withdraws, they must return double the deposit to the buyer, unless otherwise agreed.

Step 6

Signing the Title Deed

The final deed (Escritura Pública) is signed in a public notary, at which point:

  • The remaining purchase amount is paid
  • The property is officially transferred to the buyer
  • The lawyer registers the property in the buyer’s name at the local land registry

Taxes & Costs Associated with Buying Property

A. Re-Sale Property

  • Transfer Tax (ITP): 7% in Andalusia (updated 2024)
  • Notary Fees: €500 - €1,800
  • Land Registry Fees: 50-70% of the notary fee
  • Legal Fees: 1% - 1.5% of purchase price + 21% VAT

B. New Property from Developer

  • VAT: 10% for residential properties, 21% for plots, garages, and storage
  • Notary Fees: €500 - €1,800
  • Land Registry Fees: 50-70% of the notary fee
  • Legal Fees: 1% - 1.5% of purchase price + 21% VAT

Step 7

Final Steps After Purchase

Upon completion, it is necessary to update names on contracts related to:

  • Water and electricity services
  • Council tax (IBI)
  • Rubbish tax (Basura)
  • Community fees

A Spanish bank account is required for the smooth processing of these payments.

Additional

Considerations

Property Insurance

It is advisable to have property insurance, especially if purchasing with a mortgage, as banks require a policy to safeguard the interest rate until the loan is paid off.

International Schools

The Costa del Sol has numerous international schools regulated by the Andalusian Education Department, providing high-quality education options for expatriate families.

Start Your Property Journey with iHOME Property

Whether you're searching for a home in Marbella, Estepona, or Benahavís, iHOME Property is here to assist you every step of the way. Contact us today for expert guidance and a seamless property-buying experience.

T: +34 952 781 258
E: [email protected]