Purchasing a property, especially your dream home can be a very daunting task. But as far as our experience, you must understand the process before you invest to buy a property in Marbella and Spain.
Let’s discuss the six simple steps that are required to own a property in Marbella.
- Do your research thoroughly
- Organise your property viewings
- Prepare all the required documents
- Negotiate with the property owners
- Signing contracts to buy property in Marbella
- Finalizing the purchase and post-purchase responsibilities
1. DO YOUR RESEARCH THOROUGHLY
As with any financial commitment, start your research when purchasing a property, research and preparation are crucial to starting it off right.
Let’s break it down how you can start your research:
- Preparation and research are key when purchasing a property—especially in a competitive market like Spain.
- The internet is your friend when starting out, especially for overseas buyers. It means you can view market trends, areas, and properties on the market from anywhere in the world.
- Marbella’s and Spanish property market is open, i.e., listings are usually available to multiple real estate agencies since most companies share a database.
- Choosing the right real estate agent is so important for your research to buy your dream real estate in Spain.
- Find one you feel comfortable with, not just professionally, but personally. Your dream agent should understand your vision and give you straightforward advice.
- Rino Properties is committed to offering expert advice with 100% client satisfaction.
2. ORGANIZE YOUR PROPERTY VIEWINGS
Now that you have decided you will plan to buy a property in Spain, the next step is to decide when to travel. If you schedule a property tours, here are few tips that you need to consider before organizing the property viewings:
Tip #1. Make a list of properties in advance to be on the safer side according to desired location, size and required type.
Tip #2. After you’ve made a list, now is the time to choose a real estate firm. Choose a real estate agency like Rino Properties. We will help you to organise multiple viewings that take place over an entire day. This approach will help you quickly familiarise yourself with the market while making the most efficient use of your time.
Tip #3. Our suggestion is to view properties at least four to five per day. Viewing too many houses in one day will make you exhausted.
Tip #4. Loving the property itself is essential, but also crucial is loving where it’s situated. Think about such things as whether you want a gated community, how close you want to be to the beach, how close good schools are, or if you’d prefer a quieter location removed from street noise.
Pro tip: Drive around the neighborhood to really get a sense of the location.
Tip #5. If a property stands out during a daytime viewing, make sure to revisit it at night. A home’s atmosphere can feel very different in the evening, and this second visit could influence your perception and decision.
Tip #6. The ideal house on the website can disappoint when seen physically. This is where the correct agent steps in — a good agent will work with your changing needs, reschedule viewings if necessary, and guide you to the best ones in an effective manner.
3. PREPARE ALL THE REQUIRED DOCUMENTS
You may as well be aware that Spain is extremely paperwork-inclined. Before going on, it is a good idea to point out that having all your paperwork in order before, or at least while, you go to Marbella will save you so much time and unnecessary financial burden.
Although there are no legal restrictions for non-residents to buy property in Spain, there are certain requirements you need to fulfill before starting the process:
Request an N.I.E Number
The N.I.E Number (Número de Identidad de Extranjero) is an automatic consecutive numbering identification number assigned to foreigners. It is required for almost every official action in Spain — opening a bank account, buying a house, getting a Spanish telephone number, working, or studying.
If you are arranging from abroad, you can apply for an N.I.E through a Spanish consulate. If in Spain, you can apply at a police station or through a legal administrator, known locally as a gestor.
Documents required for an N.I.E in Andalucía:
- European passport holders: The main identity page and a photocopy.
- Other passports: Send the full passport with photocopies of all of the pages, two photographs of identification, and two completed and signed copies of the application form.
- Valid reason for application: Such as buying a property, commencing work, or buying a vehicle.
N.I.E. processing can take several days to a few weeks. We recommend applying early or using a gestor to avoid delays in banking or contracts.
Open a bank account in Spain
Once you have your N.I.E, you can set up a Spanish bank account. We recommend banks with international client experience, such as Sabadell, CaixaBank, Santander, or Bankinter. Take note that you must be in Spain to open an account.
Documents requirements
- Documentation of identity (passport or ID card)
- N.I.E Number
- Documentation of funds or tax return statements
- Proof of residence (such as a rental agreement or recent utility bills).
- Additional requirements: Some banks, for example BBVA, require a Certificado de No Residente (Certificate of Non-Residency), which must be applied for at a police station and take a maximum of 10 days to obtain.
Important note: Foreign documents may need to be officially translated into Spanish and apostilled with an Apostille stamp. In addition, the Certificate of Non-Residency (Certificado de No Residente) is valid for 2 years and may need renewal if you’re using the account long-term as a non-resident.
Get a tax advisor
We strongly recommend that you seek out a competent and trusty solicitor and tax adviser early on. Having seasoned professionals on your side can be a vital strength in negotiation and throughout the transaction.
Pro tip: If you don’t speak Spanish, make sure you have professionals who can communicate in your language. Luckily, Marbella’s international community means you can readily find multilingual legal advisers.
4. NEGOTIATING WITH THE PROPERTY OWNER IN SPAIN
Once you’ve found a property, the next step is entering the negotiation phase. When purchasing from a private owner, here are some important steps to consider:
Making an Offer
Once you are ready to submit an offer, we recommend making it in writing, generally through an offer letter issued on behalf of you by your real estate agent. The letter should identify specifically the amount offered as price, recommended payment terms, and conditions pertaining to purchase.
While others like to negotiate directly with the seller, we have found that negotiations through an agent tend to be more favorable to the buyer. Our agents at Rino Properties bring expertise to the negotiation process, which tends to produce a superior outcome.
Requesting a technical due diligence
Prior to finalizing your offer — or included within the offer — it is advisable to request a technical due diligence of the property. An inspection such as this examines the physical state of the property and can detect possible risks prior to the sale being completed.
A technical due diligence report typically covers:
- Cosmetic defects (e.g., cracks in plasterwork, signs of dampness, or poor insulation/ventilation)
- Plumbing and piping infrastructure
- Boiler, gas, and water tank condition
- Electrical installations
Note: Technical due diligence is not mandatory in Spain but is highly recommended, especially for resale or older properties.
5. SIGNING CONTRACTS TO BUY PROPERTY IN MARBELLA
Once your offer has been accepted, you are now in the legal process of purchasing a property. In Marbella, this is normally the stage of signing:
- Reservation Contract
- Private Purchase Contract
- and the Official Deed in the notary on completion day
The Reservation Contract
The Reservation Agreement keeps the property on hold for an agreed duration between parties. To reserve it, a reservation fee is paid — usually in the range of €2,000 to €20,000, or roughly 1% of the price, depending on negotiation.
Note: This fee secures the property off the market. In the case where the buyer goes on to purchase the house, the charge is refundable as part of the final purchase price. Alternatively, should the buyer cancel — except agreed terms being noted in the contract — the reservation charge generally forfeits as payment to the seller.
Private Purchase Agreement
After the reservation, you will proceed to sign the Private Purchase Contract, together with a 10% payment of the buying price, as well as paying the reservation fee.
There are three main types of private purchase contracts:
- Penitential Deposit Contract (Contrato de Arras Penitenciales)
This agreement allows both parties to pull out. If the vendor pulls out, they must refund double the deposit. If the purchaser pulls out, they must pay the paid amount.
- Private Purchase Contract (Contrato Privado de Compraventa)
This binds both parties more closely. If either party doesn’t feel like continuing, the other is free to proceed to court — though this never happens.
- Rent & Purchase Option Contract (Contrato de Alquiler Opción de Compra)
Here, the seller is bound under the contract and cannot withdraw. The buyer retains the exclusive right to proceed with the purchase in the stated period. If not, they lose the 10% deposit.
Important: It’s not what the contract is named, but how it reads. Always carefully check every paper with your solicitor.
Applying for a Mortgage (if needed)
If financing is necessary, it is best to start early, since obtaining approval can take two months.
Standard conditions for non-resident buyers are:
- Non-resident mortgages in Spain typically finance 50–70% of the purchase price, depending on the buyer’s profile and the bank.
- Loan durations of 15 to 25 years
- Early payment penalties of 0.25% to 0.5%
- Life insurance and property insurance is mandatory
You will be requested to provide documentation of income, tax returns, and other forms depending on your individual circumstances by lenders.
Completion at the Notary — Escritura de Compraventa
Completion day is when the buyers, sellers, and their representative attend at the notary’s office. Payment is typically in banker’s drafts (cheques), which ensures instant and secure payment transfer.
As soon as the Title Deed (Escritura Pública) is signed, complete ownership and responsibility of the property become legally yours.
Following completion:
- The deed is registered at the Land Registry (a two-month process).
- You will then receive the registered deed, along with all related invoices.
- Finally, you will be able to transfer utility accounts such as electricity, water, and internet into your name.
6. THINGS TO REMEMBER AFTER BUYING A PROPERTY IN SPAIN
Once you have purchased your property, there are several important steps that must be taken in order to finalize the process, pay all of the taxes, and actually register your ownership. These procedures can usually be handled by your solicitor or lawyer in order to simplify the process.
Registering your property
After purchase, you must:
- Update all the utility accounts (electricity, water, gas, telephone) and community fee records with your name and bank details.
- Once all relevant taxes are paid, the property must be registered at the Local Property Registry (Registro de la Propiedad) to legally recognize your ownership.
Required documents:
- Your N.I.E. (Número de Identificación de Extranjero) and an authorized copy of your passport.
- Proof of payment of ITP (Property Transfer Tax).
- A copy of the seller’s latest IBI (Property Tax) receipt.
- Your solicitor can do the registration for you to ensure everything is done correctly.
Owning a property – yearly expenses
You will have the following property expenses as a property owner in Spain:
- Maintenance fees – Depending on the size and kind of property. Apartments have lower maintenance. Pool and garden villas involve significantly higher costs in repairs, cleaning, landscaping, pool maintenance, and utilities.
- Community Fees (Gastos de Comunidad) – If your property is part of a complex, building, or development with shared areas, you are bound by law to join the Community of Owners. Pay community fees for the upkeep of common areas and shared services.
- Property Ownership Tax (Impuesto Sobre Bienes Inmuebles – IBI) – The IBI is an annual municipal tax on property.
- Garbage Tax (Tasa de Basura) – They charge an annual tax for garbage collection that you as a homeowner must pay. The cost is determined by the area and size of your property. On average, you will be charged €300 annually.
Charges that apply to you as a homeowner
You may also be subject to personal taxes as a homeowner in addition to your home expenses:
- Annual Wealth Tax – State progressive rates range from 0.2% on assets up to €167,129 to 2.5% on assets above €10,695,996. Regional rate differences also apply. There is currently a €700,000 tax-free allowance per person, including for non-residents.
- Personal Income Tax for Non-Residents – As a non-resident property owner, you are taxed on an annual income tax, whether the property is rented or not.
If the property is not rented:
- You are taxed on the “deemed rental income,” 2% of the Valor Catastral.
- The tax rate is 24% of this imputed income.
If the property is rented:
You are required to declare your rental income. In general, a flat rate tax of 24% is charged on the gross rental income. Taxable base and applicable deductions can vary, especially according to double taxation treaties between Spain and your home country.
Conclusion
Before purchasing a property in Marbella, it’s essential to have everything well-organised and a clear understanding of Spain’s real estate process. While it can feel overwhelming at times, especially for international buyers, having the right professionals by your side makes all the difference.
At Rino Properties, we are more than just real estate agents. We are your trusted partners. From the initial consultation to the final key handover, we guide you every step of the way.
Think of us as your personal advisor, consultant, and problem-solver — someone who truly understands your goals and works tirelessly to turn your vision into reality. When you’re finally sitting in your new home, we’re confident you’ll be glad you chose Rino Properties to lead the way.
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