Buying Property on the Costa del Sol

11 key steps for foreign buyers purchasing a home in Marbella, Benahavís, Estepona and the wider Málaga coast.

Buying on the Costa del Sol in 2026 as a foreigner is straightforward when you follow the right order. In Andalucía — including Marbella, Benahavís, Estepona and the wider Málaga coast — the journey is typically: agree your budget, appoint an independent lawyer, organise NIE and banking, protect your exchange rate, complete due diligence, then sign at the notary.

The process is broadly similar for EU and non-EU buyers. The main differences tend to be mortgage criteria and residency planning. Notably, Spain’s property-linked “Golden Visa” route was abolished, with applications closing in April 2025, so non-EU buyers now usually compare options like the Digital Nomad Visa or the Non-Lucrative Visa depending on lifestyle and income structure.

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Step 1: Clarify Your Plan, Lifestyle and Timeline

Before paperwork begins, get clear on how you’ll use the home. A winter-sun base near golf has different priorities to a full-time relocation with schools, or an investment-led purchase with rental goals.

On the Costa del Sol, your shortlist usually tightens quickly once you decide what matters most: walkability versus views, beach access versus hillside privacy, village charm versus resort convenience, and how close you want to be to Málaga Airport.

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Step 2: Set a True Budget for Buying Property on the Costa del Sol

One of the most common surprises for overseas buyers is that Spanish listing prices do not include transaction taxes and fees. As a practical guide in Andalucía, allow roughly ~10% on top for a resale property, covering ITP and typical fees, and around ~14–15% for a new build, covering IVA, AJD and fees. Your lawyer should refine the exact figure once the specific property and purchase structure are clear.

If you want a clear breakdown with examples, see our guide to Purchase Costs in Andalucía.

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Step 3: Appoint an Independent Property Lawyer Early

Start with an independent Spanish property lawyer who acts for you, not for the agent or the seller. They will verify ownership and charges, review contracts, coordinate the notary, and confirm the real costs and timeline.

Many foreign buyers also grant a Power of Attorney so their lawyer can handle admin, banking, tax forms and registry filings if travel dates are tight. It is common on the Costa del Sol because buyers often purchase while living abroad.

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Step 4: Get Mortgage Guidance Before You Reserve

If you are using a Spanish mortgage, speak to a bank or mortgage broker early so you understand realistic loan-to-value and documentation requirements. As a broad rule, resident buyers can often borrow up to around 80% of the property value, while non-residents are typically closer to 60–70%, subject to profile, property type and bank policy.

For a Costa del Sol-specific walkthrough, see our guide to Financing & Mortgages.

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Step 5: Apply for Your NIE and Plan Residency if Relevant

Every foreign buyer needs a NIE, or Número de Identidad de Extranjero. It is the ID number used on property deeds, taxes and most banking paperwork. Processing times vary, so treat this as an early task.

If you are also planning to spend extended time in Spain as a non-EU buyer, map out your visa route alongside your purchase planning. The Golden Visa is no longer available, so the right option will depend on your income, work structure, family situation and long-term plans.

• How to Get a NIE Number in Spain
• Visas and Residency in Spain

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Step 6: Open a Spanish Bank Account and Prepare Source-of-Funds Evidence

A Spanish bank account makes completion smoother. Purchase funds, taxes, notary and registry fees, utilities and community fees are usually paid locally. Some banks allow remote onboarding through video identification, while others require an in-person visit or Power of Attorney.

Also expect robust anti-money laundering checks. In practice, that means being ready to show where funds come from, whether salary, dividends, the sale of another property or savings history, plus translated documents if requested.

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Step 7: Protect Your Budget With a Smart Currency Strategy

If you are paying in euros from GBP, USD or another currency, exchange movements can materially change the final cost, especially between reservation, deposit and completion. Many buyers use specialist FX providers, rate alerts or forward contracts to reduce uncertainty.

The key is simple: plan transfers around contract dates, and avoid leaving large conversions to the last minute.

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Step 8: Run Legal and Technical Checks

Before you commit to a deposit, your lawyer should request a nota simple from the Land Registry to confirm ownership, boundaries, description and any registered debts or charges. Beyond that, Costa del Sol purchases often benefit from a few extra checks:

• Planning and occupancy: confirm the property’s planning status and, where applicable, the Licence of First Occupation, often referenced in Andalucía as LPO or LFO depending on context.
• Community debts: ask for confirmation that community fees are up to date, especially in apartment complexes and gated urbanisations.
• IBI and local charges: verify recent IBI receipts and any local waste charge arrangements.
• Energy certificate: request the current Energy Performance Certificate, which is required for sale listings.
• Technical condition: for older villas or properties with renovations, consider an independent surveyor or architect inspection.

If you are early-stage and want a structured set of viewing questions, our Viewing Etiquette & Offer Strategy guide can help.

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Step 9: Agree the Offer, Then Reserve Properly

Once you agree price and terms, the seller may request a reservation contract and a small payment to take the home off the market for a defined period. This is where foreign buyers should slow down slightly and ensure the document is crystal clear about:

• the agreed purchase price and included items, such as furniture, parking and storage;
• the deadline for signing the main deposit contract;
• what happens if finance or legal checks uncover an issue;
• the refund terms, including when the payment is refundable and when it is not.

As a buyer-safety point, reservation payments should never be rushed. We strongly recommend that funds are handled only after independent legal advice. The Benahavís Collection does not hold buyer funds and recommends that buyers use their solicitor’s client account or another properly advised route, rather than transferring reservation money directly to an agent without legal guidance.

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Step 10: Sign the Deposit Contract and Progress Mortgage Valuation

The next milestone is typically the arras contract. A common structure is arras penitenciales, where the buyer can forfeit the deposit if they withdraw, while the seller must return double if they pull out. Your lawyer will confirm the exact wording and type being used. The deposit is often around 10% of the price, but it can vary depending on negotiation and timelines.

If you are taking a mortgage, the bank will request a full document pack and will instruct an official valuation, known as a tasación. If the valuation comes in below the purchase price, you may need a larger cash contribution or renegotiate.

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Step 11: Complete at the Notary, Then Register Ownership

Completion happens at the notary, where you sign the public deed of purchase, or escritura, and, if applicable, the mortgage deed. Funds are typically settled by bank transfer and/or banker’s draft in line with the agreed completion mechanics.

If you are signing a mortgage, Spanish mortgage rules require banks to provide pre-contract information in advance and a minimum reflection period before signing, with a prior notary visit to confirm understanding and compliance.

After signing, taxes and fees are paid and the deed is submitted to the Land Registry so ownership is registered in your name. Your lawyer will also help switch utilities, arrange direct debits for community fees, and ensure any ongoing obligations, such as non-resident tax filings where relevant, are set up correctly.

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A Quick Note on New Builds and Off-Plan Purchases

Buying off-plan is common on the Costa del Sol, but the checks shift slightly. Your lawyer should verify the developer’s legal structure, planning permissions, stage-payment schedule and, crucially, your protection for any advance payments. Spain’s buyer-protection rules require developers to secure guarantees, typically via bank guarantee or insurance, for amounts paid in advance under the regulated framework for off-plan purchases.

You will also want clarity on delivery dates, specification, snagging and what happens if timelines move.

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Useful Next Reads for Costa del Sol Buyers

For more detail before you reserve, these guides can help you move from early research to a safer, better-structured purchase: Purchase Costs in Andalucía, Financing & Mortgages, Viewing Etiquette & Offer Strategy, Glossary of Spanish Property & Legal Terms, Visas and Residency in Spain, and Property Portals vs Local Specialists.

You can also browse properties for sale across the wider Costa del Sol if your search extends beyond Benahavís.

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FAQs

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Related Reading

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