a. Define Your Requirements

• Location: Marbella offers diverse areas, each with its unique charm. Decide on your preferred areas based on proximity to beaches, amenities, and lifestyle needs.
• Type of Property: Consider what type of property suits your needs—whether a villa, apartment, or townhouse.
• Size and Features: Determine the size, number of bedrooms and bathrooms, and other features like a garden or swimming pool.

b. Set a Budget

• Property Price: Research the average prices in your desired areas to get a realistic sense of costs.
• Additional Costs: Plan for taxes, legal fees, notary fees, and potential mortgage-related expenses, typically adding 10-15% to the purchase price.
• Financing: Assess whether you need a mortgage. If so, consult with banks to explore your options.

c. Market Research

• Local Expertise: Engage with reputable real estate agents who specialize in the Marbella market to gain insights and access exclusive listings.

• When purchasing a property in a new development, you’ll receive the price list and payment terms. Payments are usually spread throughout the construction period, with the final payment due upon completion and possession. Payment terms can vary, with some developers requiring larger down payments or more installments. Developers may also adjust terms to fit your financial situation, and a real estate agent can help negotiate the best terms for you.

  If you’re buying a property that’s not in a new development, the process is slightly different and generally involves negotiating directly with a private owner.

  Steps for Buying from a Private Owner:

  1. Secure the Property: Once you find a property you like, secure it with a legally binding agreement between you and the seller.

  2. Make an Offer:

     • Written Offer: Submit a written offer through your agent, typically backed by a deposit of €6,000 to €20,000 to demonstrate your seriousness. This deposit is held in a client account until a private contract is signed. If negotiations fail, the deposit is returned.
     • Offer Details: Your offer should include the offered price, the duration of the offer, payment terms, completion time, and any contingencies such as repairs or mortgage approval.

  3. Negotiation: The seller can accept, counter, or reject your offer. Once accepted, a private contract is drafted, and a 10% deposit (minus any initial deposit) is paid. Completion usually occurs within 30-45 days.

  Tips for Buyers:

  • Reasonable Offers: Make reasonable offers; too low an offer may not be taken seriously.
  • Sale Inclusions: Clarify included sale items, especially furniture and fixtures. Permanent fixtures are generally included, but personal items might not be.
  • Minor Negotiations: Avoid disputes over minor items with sentimental value to the seller.
  • Legal Assistance: Engage a lawyer who speaks your language to check the land registry and prepare necessary documents. Ensure any existing mortgage is paid off before or at the sale’s completion.

  Using a real estate agent can simplify the process by ensuring all negotiations and legal requirements are handled smoothly. Our team is here to assist you in finding and securing your ideal property in Marbella, whether in a new development or an existing home.

Once you have chosen a property and your offer is accepted, the following steps outline the purchase process:

1. Reservation Deposit: Pay a deposit, usually 1% of the agreed sale price, to take the property off the market.

2. Private Purchase Contract: A date is set to sign the private purchase contract, at which time it is customary to pay 10% of the agreed sale price.

3. Public Deed: Both parties must sign the deed of sale before a Spanish notary, who certifies it as a public document.

N.I.E. (Identification Number for Foreigners)

Non-Spanish buyers must obtain an NIE from the local police. This number is essential for all real estate transactions.

Residence Permits

A residence permit is not required to purchase property in Spain unless you plan to live there for over 183 days per year, in which case you must apply for tax residency. Non-EU citizens wishing to reside permanently must obtain a visa from the Spanish Consulate in their home country.

Golden Visa

To attract investment, Spain offers a Golden Visa to individuals who invest at least €500,000 in Spanish property. This visa grants a residence permit, initially for two years and extendable to five years, with the ability to work in Spain and a path to long-term citizenship.

• Investment Alternatives: Include depositing €1 million in a Spanish bank, investing €1 million in Spanish companies, or €2 million in public debt.
• Visa Maintenance: The visa can be renewed indefinitely as long as the investment is maintained, with the requirement that the holder enters Spain at least once a year.

• 1. Assess Financial Situation:

     • Review Finances: Evaluate your income, savings, and credit score. For example, with a monthly income of €5,000 and €50,000 in savings, determine what mortgage fits your budget.

  2. Determine Budget:

     • Calculate Affordability: Use mortgage calculators to estimate borrowing capacity and monthly payments. A €300,000 loan over 25 years at 3% interest could mean payments of around €1,420 monthly.

  3. Obtain a Mortgage Pre-Approval:

     • Pre-Approval: Get pre-approved by lenders or brokers to know how much you can borrow. Contact brokers like Mortgages Direct or Spanish Mortgage Advisors for guidance.

  4. Research Mortgage Lenders:

     • Compare Options: Explore different lenders and mortgage terms. Spanish banks such as Banco Santander, BBVA, and CaixaBank offer competitive rates. Non-residents typically see rates between 3% and 4%. Consider both traditional banks and private lenders for potentially better rates or terms.

  5. Gather Required Documentation:

     • Prepare Documents: Provide financial documents, proof of income, and identification. Non-residents may need additional paperwork like a visa and proof of employment.

  6. Submit Mortgage Application:

     • Apply: Submit your application along with all necessary documents. Your financial situation and connections might help you secure a more favorable deal.

  7. Property Valuation:

     • Valuation: The lender will arrange a property valuation to ensure it meets their criteria, typically costing between €300 and €500.

  8. Receive Mortgage Offer:

     • Offer: Review the formal offer detailing loan terms and interest rates. For instance, a €250,000 loan at 3.5% over 20 years may result in monthly payments of around €1,433.

  9. Review and Sign the Mortgage Contract:

     • Contract: Carefully review the terms. Consult a legal advisor if needed, and sign the contract once you’re satisfied.

  10. Complete Legal Procedures:

      • Legal Work: Hire a local solicitor or conveyancer to handle legal aspects. Costs generally range from €1,000 to €2,500.

  11. Finalize the Purchase:

      • Purchase: Pay the deposit (usually 10% of the purchase price) and arrange the final payment. Ensure all documentation is complete.

  12. Manage Your Mortgage:

      • Payments: Set up and manage your mortgage payments. Track interest rates and consider refinancing if you find better terms.

  Exploring both traditional banks and private lenders, and leveraging your financial security and connections, may help you find more favorable mortgage options.

When purchasing a property, taxes, legal fees, and related expenses typically amount to about 10% of the sales price.

New Properties

• VAT: 10% of the sale value, plus a 1.2% stamp duty.
• Commercial Properties/Garages/Land: 21% VAT plus 1.2% stamp duty.

Second-Hand Homes

• Transfer Tax: Set at 7% of the reference value* of the property for transactions after 28/4/21.

*The reference value is the higher of the declared sale price or the reference value based on the cadastral value and market rates.

Exceptions and Reductions in Transfer Tax

• Main Residence (< €150,000): 6%
• Main Residence (< €150,000) for under 35, domestic violence victims, terrorism victims, or depopulation areas: 3.5%
• Main Residence (< €250,000) for disabled (33%+) or large families: 3.5%
• Resale by a business within 5 years: 2%
• Transactions between companies (VAT reverse charge): 0% VAT and 1.2% Stamp Duty.
• Transactions involving public sector guarantees: 2%

Notary and Lawyer Fees

• Notary Fees: Legally, 80% paid by the seller, but usually paid by the buyer; about 1.5% of the purchase price.
• Lawyer Fees: Approximately 1% of the purchase price.

Registration

Register the new ownership at the Land Registry by recording the deed of sale (escritura pública) to secure legal title.

Ownership

Properties can be owned by individuals or legal entities, such as Spanish or foreign companies. Consult a tax advisor for more information.

Annual Property Taxes and Expenses

Real Estate Tax (I.B.I.)

• Overview: A tax based on the cadastral value, varying by municipality, typically between 0.3% and 1.3%.
• Action: Obtain the latest I.B.I. receipt from the seller before finalizing the purchase.

Rubbish Tax

• Overview: Paid to local authorities as set by them.

Community Charges

• Overview: Fees for the maintenance of common areas in urbanizations or condominiums. Ensure fees are up to date and obtain a certificate from the community of owners at the deed signing.

Annual Personal Tax

• Resident Income Tax: Varies by individual circumstances. Consult a tax advisor for details.

• Non-Resident Income Tax: Payable from the year following purchase.

  • Tax Base: 1.1% if the cadastral value was updated in the last 10 years; otherwise, 2%.
  • Rates: 24% for non-EU residents; 19% for EU, Iceland, and Norway residents.
  • Rental Income: EU, Iceland, and Norway residents pay 19% on net income; others pay 24% on gross income.

Wealth Tax in Andalusia

• Overview: 100% subsidized as of 2022.

Solidarity Tax

• Overview: Applied to net wealth over €3 million, with rates between 1.7% and 3.5% for 2022 and 2023. The tax’s future is uncertain due to legal challenges.

Property Owned by Non-Resident Companies

• Overview: An annual tax of 3% of the cadastral value applies if owned by a tax haven company or one in a non-double taxation treaty territory.

Laws and regulations may change, so consult a qualified professional for specific advice.

Marbella has its unique blend of luxury lifestyle, nature. This coastal city on Spain’s Costa del Sol offers:

1. Stunning Coastal Setting: Marbella boasts beautiful beaches, a mild Mediterranean climate, and picturesque views of the Mediterranean Sea and nearby mountains.

2. Exclusive Lifestyle: Known for its high-end living, Marbella features luxury properties, world-class golf courses, and upscale amenities including high-end boutiques, gourmet restaurants, and vibrant nightlife.

3. Prestigious International Appeal: The city attracts celebrities, high-net-worth individuals, and international buyers seeking a sophisticated lifestyle. Its reputation for exclusivity and elegance makes it a sought-after destination.

4. Historic and Cultural Richness: Marbella’s old town, with its charming narrow streets, whitewashed buildings, and historical sites, offers a contrast to its modern luxury, adding cultural and historical depth to its appeal.

5. Excellent Infrastructure: Marbella offers high-quality healthcare, international schools, and efficient transport links, making it a convenient and attractive place for both permanent residents and seasonal visitors.

6. Investment Potential: The real estate market in Marbella is strong, with steady demand for luxury properties, offering potential for both capital appreciation and rental income.

7. Over 300 Sunny Days / Year