How will you use it?
Permanent home, holidays, retirement, rental investment, family base, golf property or a combination?
NuSun Realty | Costa del Sol Buyer Resource
The Costa del Sol Buyer’s Guide
Everything we would want you to understand before buying property here: budgets, taxes, areas, legal checks, mortgages, rental rules, running costs and the buying process. Created by NuSun Realty, buyer-focused property specialists working across the Costa del Sol market.
Your Costa del Sol Buying Team
Your property search starts with a conversation.
NuSun Realty helps buyers search, compare and purchase property across the Costa del Sol. You are dealing with real people throughout the search, not being passed from one listing agent to another.
We start by understanding why you are buying, how you want to use the property, your budget and what matters to you. From there, we work across agencies, developers and our wider property network to research the market, organise the right viewings and help you navigate the purchase through to completion.
Chris CassidyManaging Director
Lauren MurraySenior Property Partner
Cherry PatrecioProperty Partner
One point of contactA coordinated search instead of repeating your brief to multiple agents.
Across the marketWe work with agencies, developers and our wider property network.
With you throughoutFrom discovery and viewings through negotiation and completion.
The NuSun DREAM Process
A clearer way to buy on the Costa del Sol
DREAM is the process we use to take a buyer from an initial idea to the right property, with the search, viewings and transaction coordinated around them.
D
Discovery
We understand why you are buying, how you will use the property, your budget, priorities and what really matters to you.
R
Research
We research the market, suitable areas and property options across agencies, developers and our wider network.
E
Explore
We agree a tailored shortlist, coordinate the properties across different agencies and developers, then take you around them in person or virtually. You also experience the areas and spend proper time with us understanding the options.
A
Assist
We help with negotiation, finance, lawyers, due diligence, contracts and coordination so the transaction does not become a collection of disconnected conversations.
M
Move
We stay involved through completion and the practical handover, helping you move from buyer to owner.
You do not need to organise the market. That is our job.
We coordinate the relevant agencies and developers behind the scenes so your search and viewing schedule feel like one joined-up process.
Start here
Five things worth knowing before you book viewings
These points will prevent a surprising number of bad decisions later in the process.
7%
General Andalucía ITP on a resale
The general transfer-tax rate for a qualifying second-hand property purchase.
10% + 1.2%
Typical taxes on a new residential property
General residential VAT plus Andalucía's general AJD rate, before other completion costs.
NIE
Start your Spanish ID number early
It is central to the tax and administrative side of an international property purchase.
3 / 5
Community approval can matter for new tourist use
Since 3 April 2025, new tourist activity in qualifying community property generally needs express prior approval.
Area first
Buy the location before the property
The wrong location does not become right because the kitchen is beautiful.
Buying a home does not automatically give you Spanish residency.
The investor-residency provisions commonly called the Golden Visa ceased for new investment applications with effect from 3 April 2025. If relocation is part of your plan, immigration advice should run alongside the purchase rather than after it.
01. Before searching
Define the purchase before you define the property
A €700,000 holiday home, a relocation purchase and a rental investment might all produce completely different shortlists even if the buyer initially asks for the same three-bedroom apartment.
What is the true budget?
Separate the maximum purchase price from the cash needed for taxes, costs, furniture, refurbishment and finance.
What compromises are acceptable?
Walking distance, views, south orientation, privacy, modern finish, outdoor space and location rarely all arrive at the same price.
What is the timeframe?
A buyer who needs keys this summer should search differently from someone happy to wait two years for a new development.
Does finance matter?
Get an early borrowing indication before using mortgage assumptions to set the search budget.
Does rental permission matter?
If the numbers rely on tourist rental, licence eligibility belongs in the buying brief from day one.
02. Buying costs and taxes
What does the property really cost?
This is the section to understand before setting your maximum purchase price. Spain separates the tax treatment of a resale home from a newly built home bought from a developer, so the extra cash needed at completion can be very different.
Simple planning rule for an international buyer
If you are buying with a non-resident mortgage, plan on providing at least 30% of the property price yourself, because some mainstream non-resident mortgage products lend up to 70% of the property value. The bank does not normally finance your purchase taxes and other buying costs, so those need to be available on top of the deposit.
| Cost | Resale property | New / off-plan residential property | In plain English |
|---|---|---|---|
| ITP | 7% general Andalucía rate | Not normally charged on the first sale from a developer where VAT applies | Impuesto sobre Transmisiones Patrimoniales. This is the property transfer tax on a resale. Think of it as serving a similar purpose to Stamp Duty Land Tax in England/Northern Ireland, LBTT in Scotland, LTT in Wales, Irish stamp duty or a property-transfer tax in the US. |
| IVA / VAT | Usually not the purchase tax on an ordinary resale | 10% general rate on a new residential property | Impuesto sobre el Valor Añadido. Spain's VAT. A newly built home sold by the developer is generally taxed with VAT instead of ITP. UK and Irish buyers will recognise the VAT concept. The US has no direct federal VAT equivalent; sales tax is the closest familiar idea, but it works differently. |
| AJD | Not normally the main purchase tax where ITP applies | 1.2% general Andalucía rate | Actos Jurídicos Documentados. A tax on certain notarised legal documents. There is no perfect UK, Irish or US equivalent. The easiest way to think about it is a document or deed tax payable alongside VAT on many new-home purchases. |
| Independent lawyer | Often budgeted at around 1% + IVA | Often budgeted at around 1% + IVA | This is a planning allowance, not a government-set tariff. Spanish lawyers agree their fees freely with clients, so obtain a written quote and check what the fee includes. |
| Notary & Land Registry | Variable | Variable | The notary witnesses the public deed and the Land Registry records your ownership. These are separate from your lawyer and separate from the purchase tax. |
| Mortgage broker, if used | Can be a fixed fee, percentage or lender-paid | Can be a fixed fee, percentage or lender-paid | Some international buyers use a mortgage intermediary. For rough planning you may see fees around 1%, but this is not a compulsory Spanish buying tax or universal rate. The broker should tell you clearly who pays them and how much before you proceed. |
| Bank valuation | If mortgaged | If mortgaged | The lender normally requires an approved valuation to decide how much it is prepared to lend. It is not the same as a structural survey. |
| Furniture, snagging & setup | Depends on condition | Often relevant | Show-home furniture, lamps, curtains and decorative items are not automatically included just because they appear in marketing photographs or renders. |
€500,000 resale
Main tax
€35,000 ITP7% general Andalucía transfer tax, before lawyer, notary, Land Registry, finance and other costs.
€500,000 new home
Main taxes
€56,000€50,000 VAT at 10% + €6,000 AJD at 1.2%, before legal and other buying costs.
€500,000 + mortgage
Cash planning
€150,000+A 70% non-resident mortgage would still require €150,000 towards the price, plus taxes and buying costs from your own funds.
Why you may hear people say "allow 12% to 15% on top"
It is a useful broad planning range for many international buyers, especially once purchase tax, legal work and other transaction costs are considered, but it is not a tax rate. A new property and a resale do not produce the same bill. Your lawyer should prepare a property-specific estimate before you commit.
Do not confuse estate-agent commission with your buying taxes.
On many Costa del Sol transactions the selling agency or developer pays the collaborating buyer-side agency from the agreed sales commission. NuSun's whole-market buyer service is therefore normally provided without an additional NuSun agency charge to the buyer, unless a specific arrangement is agreed otherwise.
Before you start searching
Which question are you trying to answer?
Most buyers come to us knowing one of two things. Either you know roughly what you want to spend on a property, or you know how much cash you have available. Pick the question that sounds like you and we will help you work out the rest.
Not sure which numbers to use?
Tell us what you are thinking. We can help you make sense of the budget before you start arranging viewings.
03. Prepare early
The admin that is easier to start before you find the property
You do not need every item finished before your first viewing, but waiting until an offer is accepted creates unnecessary pressure.
NIE number
The Número de Identidad de Extranjero is the foreigner's identification number used across Spanish administrative and tax processes.
Proof of source of funds
Banks, lawyers, notaries and developers can require evidence showing where the money for the transaction originates.
Independent lawyer
Choose somebody acting for you. Do not confuse the seller's, developer's or lender's adviser with your own representation.
Spanish bank account
A Spanish account can simplify taxes, utilities, community fees and ongoing ownership administration.
Power of attorney
If you travel frequently, ask whether your lawyer should be authorised to handle defined administrative or completion steps for you.
Currency planning
If your funds are in sterling, dollars or another currency, exchange-rate movements can alter the effective property price before completion.
We help you get ready
We guide you through all of this, and it is usually easier to start before you find the property.
You are not expected to work out the Spanish admin on your own. We help you understand what is worth starting early, what can wait and who you need to speak to. That can include your NIE, independent lawyer, Spanish bank account, proof of funds, mortgage preparation, Power of Attorney and currency planning. Getting the right things moving early can make life much easier when the right property comes along.
DREAM: Assist
04. Mortgages and finance
For a non-resident buyer, think 30% deposit plus the buying costs
A mortgage does not mean you only need the deposit. Some mainstream non-resident mortgage products lend up to 70% of the property's value, so a buyer may need to provide at least 30% of the price personally, then fund the taxes and transaction costs on top.
A simple €500,000 example
- Property price: €500,000
- Illustrative 70% mortgage: up to €350,000
- Buyer contribution to price: at least €150,000
- Purchase taxes: additional
- Lawyer, valuation and other transaction costs: additional
The lender can also base its percentage on the lower of purchase price and valuation, depending on its policy. Approval still depends on income, debt, age, credit profile and the property itself.
What a mortgage broker actually does
A mortgage broker or credit intermediary is not the bank. Their job is to assess your circumstances, approach suitable lenders, compare offers and help manage the application. Some charge the buyer, some receive remuneration from lenders and some use a mixture. Ask for the fee structure in writing before instructing them.
Ask the lender about
- Maximum loan-to-value for your residence status
- Whether the percentage is based on price, valuation or the lower figure
- How affordability is calculated
- Fixed, variable and mixed-rate options
- Early-repayment rules and costs
- Insurance or linked-product conditions
Why pre-assessment matters
If finance is essential, establish realistic borrowing capacity before agreeing a property. If you later sign a deposit contract without an appropriate finance condition, being refused the mortgage does not automatically mean your deposit is protected.
How much cash should a non-resident mortgage buyer have?
CaixaBank's HolaBank currently states that it finances up to 70% and that a buyer should cover the remaining 30% plus approximately 12% to 15% for taxes and other expenses. That implies roughly 42% to 45% of the property value in available funds in its example. Different lenders and transactions can produce different figures.
A bank valuation is not a structural survey.
The valuation is primarily there to support the lender's credit decision. It does not replace your lawyer's legal checks or a technical inspection if you want one.
How we help
If finance is required, we can introduce appropriate mortgage specialists and factor realistic borrowing into the search before you spend time viewing unsuitable options.
Now for the enjoyable part
Once the numbers make sense, we can start finding the right place.
This is where the search becomes personal. We look at how you actually want to live, not just bedrooms, bathrooms and a price range. The right area comes first, then we build the property shortlist around it.
The right property only works when the location, lifestyle and numbers work with it.
DREAM: Research
10. Areas
Buy the area before you buy the property
The Costa del Sol is not one market or one lifestyle. Spending time in different areas before narrowing the property shortlist is often one of the most valuable parts of a buying trip.
Marbella
International living, beaches, restaurants, established luxury areas and broad property choice.
Nueva Andalucía
Golf Valley, villas, apartments and easy access to Puerto Banús.
Benahavís
Gated estates, golf, mountain settings and some of the coast's highest-end communities.
Estepona
Old-town character, beaches and substantial modern-development supply.
Mijas & La Cala
Golf, family communities, coastal living and strong links to Málaga and Marbella.
Sotogrande
Marina, golf, international-school access and a spacious resort lifestyle.
Area questions that matter
Airport time, schools, walkability, beach access, winter activity, golf, traffic, hills, privacy, community facilities, rental demand and how often you will actually use the property should all influence location.
How we help
If you do not know the coast well, we help you compare areas before narrowing the property search. A great property in the wrong location is still the wrong purchase.
Not sure which part of the Costa del Sol suits you?
Tell us how you want to live here and we can help narrow the search before you waste days viewing in the wrong locations.
Ready to have a look?
See what is available across the Costa del Sol
Browse properties now, or tell us what you are looking for and we can build a more focused shortlist across agencies, developers and our wider network.
DREAM: Assist
05. From offer to completion
How a typical purchase moves from interest to keys
Individual contracts vary, particularly between resale and off-plan, but this is the broad sequence most international buyers should understand.
1
Offer and negotiation
Negotiate more than price: furniture, completion timing, defects, inclusions, finance conditions and possession can all matter.
2
Reservation
A reservation payment may remove the property from active marketing while contracts and due diligence move forward. Refund conditions depend on the agreement.
3
Due diligence
Your lawyer checks title, charges, planning, community, tax and other matters relevant to the property and your intended use.
4
Private contract / arras
The contract sets the price, deposit, completion date, conditions and consequences if a party fails to complete. Do not sign it as a formality.
5
Prepare completion
Finance, funds, certificates, tax calculations, notary arrangements and final documentation are brought together.
6
Notary and registration
The public deed is signed, the agreed consideration is paid and the post-completion tax and Land Registry work follows.
There is no single universal "10% deposit rule".
Reservation amounts, arras contracts and off-plan stage payments differ. The legal effect of the deposit depends on the contract you sign, so your lawyer should explain what happens if either side fails to complete.
How we help
Once you choose a property, we stay involved around the transaction, helping coordinate the people and information around you while your lawyer handles the legal work.
DREAM: Assist
06. Legal due diligence
Your lawyer is not simply checking a contract
Independent legal due diligence is carried out on the buyer's behalf before completion and, where the contract allows, before substantial money becomes non-refundable. The purpose is to establish that the property you think you are buying matches the legal, planning and financial reality.
What "due diligence" means in normal language
Your lawyer should investigate the property rather than simply accept what the advert, seller or agent says. That can include ownership, registered charges, planning status, debts, community matters, cadastral and Land Registry discrepancies, occupation documentation, rental restrictions and the purchase contracts themselves.
Ownership, mortgages and debts
- Confirm the registered owner has the right to sell
- Review mortgages, embargoes, easements and registered charges
- Check IBI and other relevant property debts
- Check community-fee arrears
- Establish how existing charges will be cancelled at completion
Planning and building legality
- Review the property's planning position
- Check extensions, enclosed terraces, pools, basements or later alterations where relevant
- Identify any unresolved planning infringement or municipal issue
- Review occupation / first-occupation documentation where appropriate
- Check whether your intended use is compatible with applicable rules
Land Registry, Catastro and the physical property
Spain has more than one property record. The lawyer should identify material discrepancies between the Land Registry description, cadastral information and what physically exists.
- Registered size and description
- Cadastral size, reference and mapping
- Physical alterations not reflected in records
- Parking, storage, terraces and annexes
- Boundaries where relevant, particularly for villas
Community of owners
- Current community fees and debts
- Approved or likely special assessments
- Statutes and internal community rules
- Recent meeting minutes
- Restrictions affecting alterations, pets or use where relevant
- Tourist-rental approval or prohibition if rental matters to the purchase
The contracts
The lawyer should review the reservation, Private Purchase Contract, arras or developer contract so you understand exactly what you are agreeing to, what must happen before completion and what happens if either side fails to perform.
New development due diligence
- Developer and land position
- Building licence and development documentation
- Specification and plans
- Stage-payment protections
- Completion and occupation documentation
- Contractual delivery dates and consequences of delay
Why this matters
A property can look identical online whether it is legally straightforward or carries an unresolved extension, debt, planning issue or rental restriction. Due diligence is what turns a viewing decision into an informed purchase decision.
How we help
Your independent lawyer performs the legal due diligence. We help coordinate with the lawyer, selling side and other parties so questions, documents and property information keep moving.
Documents and Spanish terms
The paperwork buyers keep hearing about, explained simply
Spanish property terminology sounds more complicated than it is. These are some of the terms you are likely to hear during a purchase.
| Term | What it actually means | Why it matters |
|---|---|---|
| NIE | Your Spanish foreigner's identification number. | Used throughout Spanish tax and administrative processes. It is not the same thing as residency. |
| Nota Simple | An informational Land Registry extract. Think of it as a snapshot of the registered legal position of the property. | It helps show who is registered as owner and whether mortgages, embargoes or other registered charges affect the property. |
| Catastro | Spain's cadastral record, used mainly for property identification and taxation. | Your lawyer can compare cadastral information with the Land Registry and the physical property to identify material mismatches. |
| First Occupancy Licence / occupation documentation | Documentation relating to the lawful completion and occupation/use of a building. Depending on the age and circumstances, the relevant legal instrument may be a licence or a responsible declaration. | For a new home, the Junta advises buyers to ensure the developer provides the first-occupation documentation. It can also matter to utilities, mortgages and certain later uses. |
| Escritura | The public deed signed before the notary. | This is the formal public document used for the sale and subsequent Land Registry registration. |
| PPC | Private Purchase Contract. | Usually sets the commercial and legal terms before completion, including payments, deadlines and conditions. |
| Arras | A private deposit agreement or deposit clause. | It is legally binding. The consequences of withdrawal depend on the form and wording of the contract. |
| IBI | Impuesto sobre Bienes Inmuebles, the municipal property tax. | An ongoing ownership cost, broadly comparable to an annual local property tax. |
| Basura | A local rubbish / waste-collection charge where imposed. | Another municipal running cost. The amount and billing method depend on the municipality. |
| Community fees | Payments to the community of owners in shared developments. | They fund communal expenses such as gardens, pools, lifts, security and building maintenance. |
| Plusvalía municipal | A municipal tax connected with the increase in value of urban land on a transfer. | Usually relevant when the property is sold rather than as one of your acquisition taxes. |
Nota Simple and first occupancy are completely different documents.
The Nota Simple tells you about the Land Registry position, ownership and registered charges. First-occupation / occupation documentation concerns the building's lawful occupation or use. Having one does not mean you automatically have the other.
07. Physical condition
Legal due diligence does not tell you whether the roof leaks
Consider an independent technical inspection where the age, condition, renovation history or purchase value makes it sensible.
Resale property
Look for damp, terraces, waterproofing, air conditioning, plumbing, electrical condition, windows, pools and unregistered alterations.
Villa
Boundary issues, retaining walls, pools, gardens, drainage, roofs, basements and external structures deserve additional attention.
New build
A snagging inspection helps document finish defects and deviations around handover. Keep the agreed specification with you.
08. Buying off-plan
Modern property can be compelling, but the contract matters
Off-plan buying is not simply "buy now, wait for keys". Understand who the developer is, what is authorised, what is promised and how your money is protected.
01
Reservation
A reservation payment normally secures the selected property while the transaction moves into the contractual stage.
02
PPC
The Private Purchase Contract sets the payment schedule and key obligations. Part of the legal fee may also fall due around this stage.
03
Stage payments
Further payments depend on the individual development and contract. Your lawyer checks the protections applying to advance payments.
04
Completion
The remaining balance and most completion-related purchase costs are normally settled when the property completes.
Off-plan cash flow is different from buying a completed resale.
The overall capital requirement may look large, but it is normally spread across the development's payment schedule. Reservation and contractual stage payments happen first. A significant part of the remaining purchase price, purchase taxes and other completion costs are usually required later. Under the NuSun planning assumption used in this guide, approximately half of the 1% legal-fee allowance may be due around PPC, with the balance later. Always use the developer's actual payment schedule and your lawyer's fee agreement for the real numbers.
Developer and planning checks
- Developer identity and legal entity
- Ownership or rights over the development land
- Building-licence position
- Contracted specification and floor plans
- Estimated completion and contractual long-stop dates
Stage payments
Spanish law contains protections for qualifying advance payments made towards homes under construction. Your lawyer should verify the applicable guarantee or insurance arrangements and exactly where payments should be made.
What is actually included?
Confirm kitchens, appliances, air conditioning, wardrobes, lighting, landscaping, pools, parking, storage, furniture and optional upgrade packages in writing.
Handover
Completion should be supported by the required legal and technical documentation. Snagging and unresolved defects should be documented rather than left to memory.
09. Property type
Off-plan or resale?
We tend to like strong new developments, but that does not mean resale is wrong. The correct answer depends on the buyer.
| Question | Off-plan / new | Resale |
|---|---|---|
| Need to move in now? | Not if construction is ongoing | Potentially after completion |
| Modern design / efficiency | Often a strong advantage | Depends on age and refurbishment |
| See exactly what exists | Not always before delivery | Yes, subject to hidden defects |
| Purchase tax structure | Generally VAT + AJD | Generally ITP |
| Payment timing | Often staged during construction | Usually concentrated around contract/completion |
| Rental history | No historic performance if brand new | Historic data may exist but should be verified |
11. Running costs after completion
What does it cost to keep the property?
Buying costs happen once. Running costs continue every year. Before making an offer, ask for the actual current figures for the property rather than relying on a generic percentage.
IBI
Impuesto sobre Bienes Inmuebles is the annual municipal property tax. Think of it as a local property tax charged by the town hall. It is linked to cadastral values and local rules, so the amount differs by property and municipality.
Basura
This is the municipal rubbish / waste-collection charge where applicable. It is separate from IBI. Marbella's 2026 fiscal information, for example, lists both IBI and rubbish charges in its tax calendar.
Community fees
Apartments, townhouses and some villas belong to a community of owners. Fees can pay for gardens, pools, lifts, security, concierge services, gyms, spas, building insurance and communal maintenance.
Special assessments
Known as derrama, these are additional community contributions for works or extraordinary expenditure. Your lawyer should check approved or expected assessments during due diligence.
Utilities
Electricity, water, internet and standing charges should be included even if the property is only used as a holiday home. Private villas may have materially higher pool and garden costs.
Insurance
Cover should match how the home will be used: permanent residence, occasional holiday use, extended vacancy or rental activity.
Maintenance
Allow for air conditioning, terraces, paint, appliances, pool equipment, gardens and the effect of coastal weather. New does not mean maintenance-free.
Non-resident tax
Non-resident individuals can have Spanish tax obligations from owning Spanish property, including imputed income in qualifying cases where the home is not rented.
Rental costs
If you rent the property, add management, cleaning, utilities, platform costs, insurance, repairs, linen, guest support and tax before calculating a net yield.
Ask for these figures before you buy.
For a resale, we would want the latest IBI, community-fee information and relevant local charges available during the due-diligence process. Two apartments with the same purchase price can have very different annual running costs.
12. Tax as an owner
Non-resident owners can still have Spanish tax obligations
Spanish property can generate tax obligations through personal use, rental income and eventual sale. Residence jurisdiction also matters.
Property used personally or left vacant
Individual non-resident owners can be subject to imputed income tax on qualifying urban property even when no rent is actually received.
Property rented
Rental income from Spanish property is taxable in Spain. The applicable rate and expense-deduction rules depend on the owner's residence and tax position.
UK owners should not assume EU/EEA non-resident treatment.
Some IRNR rules distinguish EU/EEA residents from other non-residents. Since Brexit, UK tax residence can affect the Spanish rental-income calculation. Get a personal calculation rather than copying somebody else's return.
A holiday home, a permanent move and an investment property should not be assessed in the same way.
13. Renting the property
Long-term, seasonal and tourist rental are different legal ideas
A booking's duration is not the only question. The purpose of occupation and the services being provided matter too.
Permanent residential rental
A property used as the tenant's habitual home falls within the residential-tenancy framework and should be contracted accordingly.
Seasonal / temporary rental
A genuine temporary need can be treated differently from a habitual residence. The temporary reason should be real and documented.
Tourist accommodation
A furnished property offered habitually for paid tourist accommodation in Andalucía can fall within the VUT regime and its regional, municipal and community requirements.
Do not buy an investment because somebody showed you an Airbnb revenue projection.
First confirm that the intended rental model is lawful. Then model occupancy, management, cleaning, utilities, community fees, maintenance, tax and periods of personal use. Revenue is not profit.
14. Short-term tourist rental in Andalucía
When do you need VUT registration and what is involved?
Under Junta de Andalucía guidance, a responsible declaration is required when a home is rented habitually for tourist purposes. Habituality is presumed where tourist accommodation is advertised, or where the service is provided on one or more occasions in the same year for a total period exceeding one month.
Step 01
Check municipal planning
The property must comply with the municipal planning rules applicable to tourist homes.
Step 02
Check statutes and restrictions
Review the community's statutes, registered restrictions and decisions before buying.
Step 03
Obtain community approval where required
For new activity caught by the post-3 April 2025 regime, prior express approval is generally required.
Step 04
Prepare supporting documents
Junta guidance identifies an updated Nota Simple and community certificate among the documents normally requested.
Step 05
Digital certificate
The Junta's current process for the responsible declaration is electronic and requires a digital certificate.
Step 06
Submit responsible declaration
Once the online process completes, the dwelling is entered in the Registro de Turismo de Andalucía and receives its VUT registration code.
Step 07
Meet operating standards
The dwelling must comply with the applicable habitability, equipment and service requirements while operating.
Step 08
Guest reporting
Accommodation businesses can also have traveller-registration and reporting obligations through the Interior Ministry's SES.HOSPEDAJES system.
Community approval since 3 April 2025
The Horizontal Property Law now requires a homeowner wishing to begin the statutory tourist activity to obtain prior express approval of the community. The approval, limitation, conditioning or prohibition decision uses the three-fifths majority of all owners and three-fifths of participation quotas. A transitional rule protects qualifying activity already being legally exercised before the reform.
What the Junta currently asks for
The Junta's FAQ says the responsible declaration is filed online with a digital certificate. It also identifies an updated Nota Simple and a certificate from the community secretary/administrator recording the express and current approval for tourist use among the documents that should be provided or may subsequently be requested.
Important 2026 update: the national Registro Único requirement was annulled.
Many online guides still say every short-term rental must obtain the national registration number created by Real Decreto 1312/2024. In May and June 2026, the Spanish Supreme Court annulled the provisions that created the Registro Único procedure and the obligation to obtain that registration number through the Property Registry. Do not rely on a pre-2026 guide for this point. Andalucía's regional VUT rules, community rules and municipal controls remain separate issues.
Buying a property that already has a VUT code?
Do not assume the historic registration means your proposed operation can simply continue unchanged. Verify the current registered operator/holder, community position, municipal compatibility and which modification or change-of-holder procedure is required.
15. Buying as an investment
Separate a good property from a good investment
The nicest property is not automatically the strongest investment. Test the assumptions independently.
Gross income
Use realistic occupancy by month, not a peak August nightly rate multiplied by 365.
Operating costs
Management, cleaning, utilities, maintenance, insurance, community fees, platform costs and replacement items all reduce yield.
Regulatory risk
A rental strategy can be weakened by planning rules, community decisions or changes in tourism regulation.
Personal use
If you want the home yourself during Easter, July or August, remove those high-value dates from the investment forecast.
Capital growth
Do not assume historic appreciation repeats. Quality, supply, area and exit liquidity all matter.
Exit costs
A true investment calculation should include acquisition and eventual disposal costs, not just annual rental yield.
16. Selling the property later
What comes off the sale price when you eventually exit?
Keep purchase invoices, taxes and evidence of qualifying capital improvements. They can matter later when your adviser calculates the taxable gain.
| Potential cost | What to understand |
|---|---|
| Estate-agency fee | The agreed selling fee plus any applicable VAT on the service. |
| Legal / tax adviser | Sale contracts, completion and tax work should be included in the exit budget. |
| Capital gains tax | The taxable gain is not simply sale price minus original asking price. Residence status, acquisition costs and allowable adjustments matter. |
| Plusvalía municipal | A local tax connected with the value of urban land may arise, subject to the statutory rules and calculation applicable at the time. |
| Mortgage cancellation | A mortgage can require banking, notarial and Land Registry steps to remove the registered charge. |
| 3% non-resident withholding | If the seller is non-resident without a Spanish permanent establishment, the buyer generally withholds 3% of the agreed consideration and pays it to the Spanish Treasury as a payment on account. |
The 3% withholding is not automatically the final tax.
The buyer pays the withholding through Modelo 211. The seller calculates the actual non-resident capital gain separately, and an excess withholding can potentially be reclaimed under the tax procedure.
17. Ownership, inheritance and wills
Think about who should own it before the deed is signed
Buying personally, jointly or through a company can have very different legal, tax, financing and succession consequences. There is no universally "tax-efficient structure".
Joint buyers
Decide the ownership percentages and how contributions are being made rather than leaving assumptions between family members undocumented.
Company ownership
Do not form a company merely because somebody says it "saves tax". Ask for a full acquisition, annual-tax and exit comparison first.
Succession planning
Cross-border owners should ask about Spanish inheritance rules, tax and whether a Spanish will would simplify administration alongside their wider estate plan.
18. Relocating to Spain
Property ownership and immigration are separate decisions
You can buy Spanish property without becoming tax-resident or obtaining Spanish residency. If you intend to live here, deal with immigration and tax residence as separate professional workstreams.
The Golden Visa
The investment-residency articles used for the Spanish Golden Visa were removed for new applications with effect from 3 April 2025.
Other residence routes
Work, digital-nomad, non-lucrative, family and other immigration routes have their own eligibility rules. Property purchase itself should not be treated as the immigration strategy.
19. After completion
Getting the keys is not the end of the job
Utilities
Transfer or activate electricity, water, internet and any contracted services.
Community
Ensure ownership and payment details are correctly recorded with the community administrator.
Insurance
Have appropriate cover in place for the property and how you intend to use it.
Tax calendar
Understand which annual Spanish filings and local charges now apply to you.
Furniture
Plan deliveries, access, storage and snagging rather than assuming everything can be done in one weekend.
Renovation
Check whether licences or community consent are required before starting works.
Rental setup
Complete the required tourism, guest-reporting, tax and operational steps before advertising.
Local support
Keyholding, maintenance, security and trusted trades become far more valuable when you are outside Spain.
22. Avoidable mistakes
The buying decisions we would challenge
Choosing a home before choosing the area
You can renovate a kitchen. You cannot move the building twenty minutes closer to the lifestyle you wanted.
Speaking to ten agents at once
It often creates duplicated listings, conflicting advice and nobody with a complete understanding of your search.
Assuming a rental licence
If tourist income is important, prove eligibility before you make the business case dependent on it.
Using the maximum mortgage as the budget
Keep purchase taxes, setup costs and a sensible cash reserve outside the emotional maximum.
Buying the render
With off-plan, read the specification and contract. The lifestyle image is not the legal description of what is being delivered.
Skipping independent advice
Buying in a foreign legal and tax system is the wrong time to save money by avoiding professional review.
23. Viewing checklist
Questions worth asking while you are actually there
The property
- Orientation and natural light at the time you will use it
- Noise with windows open
- Privacy from neighbouring homes
- Storage, parking and practical access
- Condition of terraces and external areas
- Age of kitchens, bathrooms and air conditioning
- What is included in the sale
The wider decision
- Community fees and what they include
- Any special assessments
- Walkability rather than map distance
- Actual driving time at busy periods
- Winter as well as summer atmosphere
- Rental restrictions if relevant
- Reason the current owner is selling
25. Official sources and further reading
Verify the rules at source
This guide is maintained as a practical overview. For a live transaction, official rules and personal professional advice always take priority.
Andalucía ITP and AJD
Junta de Andalucía
VAT on buying a home
Agencia Tributaria
NIE information
Ministerio del Interior
Land Registry ownership and charges
Consejo General del Notariado
First occupation and buying formalities
Junta de Andalucía
Marbella IBI and rubbish-charge calendar
Ayuntamiento de Marbella
Andalucía tourist homes
Junta de Andalucía
Andalucía VUT FAQ and responsible declaration
Junta de Andalucía
Horizontal Property Law
BOE
April 2025 community-approval reform
BOE
2026 Supreme Court annulment of national short-term rental registration provisions
BOE, judgment 19 May 2026
Additional Supreme Court ruling on Registro Único
BOE, judgment 1 June 2026
Traveller reporting / SES.HOSPEDAJES
Ministerio del Interior
Non-resident property taxation
Agencia Tributaria
3% withholding when buying from a non-resident seller
Agencia Tributaria
Golden Visa provisions removed from 3 April 2025
BOE, consolidated Law 14/2013
Important
Property, tax and tourism rules change. Municipal rules can also differ between Marbella, Estepona, Mijas, Benahavís and other Costa del Sol locations. Never treat a website guide as a substitute for property-specific legal and tax advice before signing or paying a non-refundable amount.
Questions buyers ask us
Quick answers to common buying questions
Tap a question for the short answer. The relevant sections of this guide go into considerably more detail.
Can a foreigner buy property in Spain?
Yes. Foreign buyers can purchase Spanish property. You will normally need an NIE for the transaction and should take independent legal and tax advice appropriate to your circumstances.
Do I need a Spanish bank account?
It is often useful for completing the purchase and then paying IBI, community fees, utilities and other ongoing Spanish costs by direct debit. Your lawyer and bank can advise what is required for your transaction.
Do I need a lawyer when buying?
We strongly recommend independent Spanish legal representation. Your lawyer's job goes well beyond reading the contract and can include ownership, debts, planning, community, cadastral, Land Registry, occupation and contractual due diligence.
Can I complete without being physically in Spain?
Potentially, yes. A suitable Power of Attorney can allow your lawyer to carry out specified actions on your behalf. The scope of the authority should be agreed with your lawyer.
How much cash do I need if I am using a mortgage?
It depends on the lender, valuation and transaction. Our calculator uses an illustrative maximum 70% mortgage, so the buyer funds at least 30% of the property price plus taxes and buying costs. Use the Cost Calculator above for an indicative figure.
What if the bank values the property below my agreed purchase price?
That can increase the amount of your own capital required because the lender applies its lending criteria to the valuation and transaction. Do not assume that agreeing a price automatically guarantees a mortgage for a fixed percentage of that price.
Can I use the property for short-term holiday rentals?
Do not assume so. The answer can depend on the property, community rules, municipal/planning position, Andalucía's tourist-accommodation rules and applicable registration requirements. If rental income matters to the purchase, this should be investigated before you commit.
What is the difference between a Nota Simple and a First Occupancy Licence?
A Nota Simple is an informational Land Registry extract showing the registered property, ownership and registered charges. First-occupation or equivalent occupation documentation relates to the lawful completion and occupation/use of the building. They answer different legal questions.
How long does a purchase take?
There is no universal timetable. A straightforward completed resale can move much faster than an off-plan home that will not be completed for months or years. Finance, due diligence, seller circumstances and contractual dates all affect timing.
Can I negotiate the asking price?
Often, but not always. Negotiating power depends on the property, demand, seller motivation, competing interest and whether the asking price is already realistic. A lower offer is not automatically a better deal if the property is correctly priced and highly sought after.
Spanish property glossary
The terms worth knowing
A quick reference for the Spanish words, taxes and documents you are likely to encounter while buying or owning property.
AJD
Actos Jurídicos Documentados. A documentary/stamp tax that applies to certain notarised transactions. For the general new-build purchase assumption in this guide, we use 1.2% in Andalucía.
Arras
A private deposit agreement or deposit clause. Different forms of arras can have different legal consequences, so the wording matters.
Basura
A municipal rubbish or waste-collection charge where imposed. It is an ongoing ownership cost and is separate from IBI.
Catastro
Spain's cadastral property record, used mainly for identification and taxation. It is distinct from the Land Registry.
Community fees
Payments made to the community of owners for shared expenses such as gardens, pools, lifts, security and communal maintenance.
Derrama
An extraordinary or special community assessment, usually raised for works or expenditure outside the ordinary community budget.
Escritura
The public deed signed before a notary. The purchase deed is then used as part of the Land Registry registration process.
Gestoría
An administrative service commonly used in Spain to handle paperwork and submissions. Its role varies depending on the transaction.
IBI
Impuesto sobre Bienes Inmuebles. The annual municipal property tax, broadly comparable to a local annual property tax.
ITP
Impuesto sobre Transmisiones Patrimoniales. Transfer tax generally applicable when buying a resale property. This guide uses the general Andalucía rate of 7%.
IVA
Spanish VAT. For a general new residential property purchase, this guide uses 10% VAT, subject to the nature of the transaction.
LPO / First Occupancy
Documentation relating to lawful completion and occupation/use of a building. Depending on the property's age and circumstances, the relevant legal instrument may differ.
NIE
Número de Identidad de Extranjero. A foreigner's identification number used in Spanish administrative and tax processes. It is not the same as residency.
Nota Simple
An informational Land Registry extract that helps identify the registered property, owner and registered mortgages, embargoes or other charges.
Notary
A Spanish notary is a public official who authenticates and gives public form to certain legal acts, including the public deed of sale. The notary does not replace your independent lawyer.
Plusvalía municipal
A municipal tax connected with the increase in value of urban land on a transfer. It is normally a seller-side consideration rather than one of the buyer's acquisition taxes.
Power of Attorney
A legal authority allowing another person, often your lawyer, to carry out specified acts on your behalf. The powers granted should be tailored to what is actually needed.
PPC
Private Purchase Contract. A private contract setting out the purchase terms, payment obligations, deadlines and conditions before completion.
Registro de la Propiedad
The Land Registry. It records registered ownership and rights or charges affecting Spanish real estate.
Reservation
An initial agreement/payment used to reserve a property. Terms vary, so buyers should understand refundability and conditions before paying.
VFT / tourist rental
Terminology associated with tourist-use housing in Andalucía. Eligibility and registration should be checked against the current regional, municipal, community and national requirements before relying on holiday-rental income.
You do not need to figure all of this out yourself
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