The Process of Buying Property in Marbella
Purchasing a property is a significant commitment, and understanding the buying process is crucial to ensuring a smooth transaction. At LEVA Estate, we strive to provide personalized services, guiding you every step of the way to help you find your dream property.
1. Pre-Purchase Preparations
Before you start viewing properties, ensure that you have all the necessary preparations in place. This includes financing, legal representation, and obtaining an NIE number.
Financing:
When considering how to finance your purchase, it’s important to know your budget and determine if you need a mortgage. Spanish banks generally offer up to 70% of the property’s market value, but this may vary depending on the property type and your financial situation. We can assist in connecting you with trusted mortgage brokers and banks to secure the best financing options.
NIE Number:
You will need an NIE number (tax identification number) to complete the purchase process. This is mandatory for any foreigner buying property in Spain. Your lawyer can help you obtain one, or you can apply at the Spanish embassy or a local police station in Spain.
Legal Representation:
Having a lawyer to represent you throughout the transaction is vital. In Spain, it is common for buyers to engage legal representation to ensure the process is secure. We can recommend trusted lawyers with whom we have established working relationships, or you may choose one independently.
Legal Representation:
Having a lawyer to represent you throughout the transaction is vital. In Spain, it is common for buyers to engage legal representation to ensure the process is secure. We can recommend trusted lawyers with whom we have established working relationships, or you may choose one independently.
2. Viewing Properties
Once your preparations are in place, the next step is to begin viewing properties. At LEVA Estate, we’ll carefully listen to your needs, helping you identify properties that fit your criteria. Whether you’re searching for a modern villa or a classic beachfront apartment, we will schedule viewings to show you the best available options.
Inspection and Due Diligence:
It’s important to thoroughly inspect properties during viewings. If you’re not familiar with inspecting real estate, we recommend hiring a professional surveyor. Your lawyer will also carry out legal checks to ensure the property is free from any legal encumbrances or issues.
3. Reservation and Contract
Once you find the perfect property, you’ll want to secure it with a reservation agreement. The reservation fee typically ranges from €6,000 to €20,000, depending on the property value. This fee ensures that the property is taken off the market while you complete your due diligence and secure your financing.
Negotiation and Reservation Contract:
The reservation fee is paid once the seller and buyer have agreed on a price. We will assist you in negotiating the best terms and preparing the reservation contract. This contract will detail the agreed purchase price, the reservation fee, and the timeline for completing the sale.
4. Signing the Sales Contract
After the reservation, you will sign the purchase agreement, also known as the “Arras” or “Purchase Option” contract. At this point, you will typically pay 10% of the purchase price, which includes the reservation fee. The contract will be prepared by your lawyer, who will ensure it aligns with Spanish law.
5. Finalizing the Purchase: Notary and Title Deed
Once the contract is signed and you’ve paid the agreed deposit, the final step in the process is the notary appointment. The notary will verify your identification and review all legal documents to ensure that everything is in order. At this stage, you will pay the remaining balance of the purchase price. The notary will then issue the public deed of sale, which officially transfers ownership of the property.
Final Payment:
Upon completion, the notary will ensure that taxes and fees are paid. The buyer is responsible for paying approximately 3% of the purchase price to the Spanish tax office to ensure the seller has fulfilled their tax obligations.
6. After the Purchase: Access and Costs
Property Access:
Once the notary processes the sale, you will receive the keys to your new property. From this moment, you are the legal owner and can take possession. The property is usually handed over in its current condition unless specified otherwise in the contract.
Additional Costs:
The costs associated with purchasing a property in Spain typically range from 10% to 14% of the purchase price, depending on whether the property is newly built or a resale. These costs include:
- Transfer Tax (ITP): For resale properties, typically 7%.
- VAT and Stamp Duty: For new properties, VAT (IVA) is 10%, plus stamp duty (AJD) is around 1.2%.
- Notary and Registry Fees: Approximately €3,000, depending on the complexity of the property.
- Legal Fees: Legal representation costs are generally around 1% of the purchase price, plus VAT.
Why Choose LEVA Estate?
At LEVA Estate, we are committed to making your property purchase as smooth and transparent as possible. We work with a network of trusted professionals—lawyers, notaries, surveyors, and financial experts—to guide you throughout the entire process. Our focus is on delivering personalized service and ensuring that your investment in Marbella’s luxury property market is secure and rewarding.
