Spain’s Costa del Sol, the famous “Sun Coast,” is a region renowned for its stunning beaches, Mediterranean climate and laidback lifestyle. Stretching along the Malaga province in southern Spain, this coastline attracts visitors and homebuyers from around the world with its unique blend of Andalusian culture, world-class amenities, and year-round sunshine.
If you’re dreaming of owning a piece of paradise on the Costa del Sol, this comprehensive guide will walk you through the entire process of purchasing property in this idyllic region. From determining your budget and choosing the perfect location to navigating the legal paperwork, we’ll cover every step to ensure a smooth and successful transaction.
Pre-purchase considerations
Before embarking on your property hunt, you want to lay the groundwork and consider several key factors such as your budget and where you’ll pinpoint your search. Determining your budget is essential to ensure you don’t overextend yourself financially. You’ll need to carefully evaluate your income, deposit and potential financing options to establish a realistic price range for your dream home.
Location is another critical consideration when buying on the Costa del Sol. From the cosmopolitan vibe of Marbella to the tranquil charm of Nerja, or the family-friendly atmosphere of Fuengirola, researching and visiting potential areas will help you pinpoint the perfect spot. This region boasts a diverse array of towns and cities, each with its own unique character and appeal, so keep your options open and consider what you’re looking for from your new hometown.
Finding the right property
The next step is to decide on the type of property that best suits your needs and lifestyle, and, of course, is within the budget you’ve set for yourself. Will you be seeking a cosy apartment set moments from the beach, a spacious villa with your own private pool, or a low-maintenance townhouse in a gated community? Maybe you’re investing in a second home abroad or in a buy-to-let as a profitable side income. Consider how much living space you need, the amenities the home should have, and any long-term plans you have in mind to make an informed choice.
Working with a reputable estate agent is invaluable when looking for a property in this region. They’ll have in-depth knowledge of the local market and will not only help you find properties that match your criteria, but also provide valuable insights into different neighbourhoods that you may not be familiar with if you’re new to the area.
When viewing properties, it’s essential to approach each one with a critical eye. Evaluate factors such as the amenities, the potential for profits or renovations, and any potential drawbacks or challenges you might face. Conducting thorough due diligence at this stage can save you from potential pitfalls down the line.
Obtain your NIE number
Legally you’re required to have a Spanish fiscal number before you can complete a property transaction, since it has tax implications. This isn’t required for signing private contracts or opening a bank account, but you will need it before you can complete the sale so it’s advised you get your NIE number as soon as possible. This is easily obtained from the Foreigner’s department of your local police station and you will need to apply in person. Bring along a copy of your passport and a letter stating why you require an NIE number. The number is typically provided immediately.
Be clear on the buying process
Once you’ve found your dream property on the Costa del Sol, it’s time to navigate the buying process. The first step is to make an offer on the property you wish to purchase. In Spain, it’s common practice to negotiate the asking price, and your estate agent can provide valuable guidance on making a competitive yet reasonable offer. Once your offer is accepted, you’ll need to pay a reservation deposit, which is typically around 10% of the agreed purchase price, to take the property off the market.
Due diligence should always form part of the buying process on the Costa del Sol. This involves conducting thorough checks on the property’s legal status, ownership history, potential debts or liens, and compliance with local zoning and building regulations. Your lawyer and estate agent can guide you through this process and help you identify and address any potential issues before finalising the purchase.
Complete the purchase at the notary
Once the purchase is complete, your notary will notify the land registry of the transaction. This ensures a block is placed on the title so no other transactions can be carried out on the property – an important safeguarding measure to protect your rights as the new owner. You, or your solicitor, will then have 30 days to pay the transfer tax and a 3% retention fee (if you’ve purchased from a non-resident). Final registration of your property could take up to two months, so factor this into your schedule for moving in.
After the purchase
When the purchase has been handled, you can transfer accounts from local utility companies into your name. Immediately after the deed has been signed, the notary will inform the town hall that you’re the new owner of the property and that any property tax will be transferred to your name.
If you plan to reside in Spain long-term, you’ll need to obtain a residency permit. The requirements for this vary depending on your nationality and specific circumstances, but generally the process involves providing documentation such as proof of income, health insurance and a clean criminal record. Your solicitor will guide you through this process and ensure you comply with all necessary regulations.
All that’s left to do now is unwind and embrace the vibrant lifestyle of the Costa del Sol region. Immerse yourself in local culture, explore breathtaking beaches and picturesque villages, and indulge in delectable cuisine and lively nightlife. Or, if you’re letting your property out as an investment, it’s time to start marketing the home and find your ideal tenants, so you can start earning a profit.
