11 Key Steps to Buy a Home on the Costa del Sol in 2026 (As a Foreigner)

Buying property on the Costa del Sol as a foreigner in 2026 is straightforward when you follow the right order. In Andalucía (Marbella, Benahavís, Estepona and the wider Málaga coast), the journey is typically: agree your budget, appoint an independent lawyer, organise NIE + 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 (applications closed 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.

Step 1) Clarify your plan: lifestyle, location 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 vs views, beach access vs hillside privacy, village charm vs resort convenience, and how close you want to be to Málaga Airport.

Step 2) Set a true budget (price + purchase costs + setup)

One of the most common surprises for overseas buyers is that Spanish listing prices don’t include transaction taxes and fees. As a practical guide in Andalucía, allow roughly ~10% on top for a resale (ITP + typical fees) and ~12–13% for a new build (IVA + AJD + fees), then refine once your lawyer confirms the exact case.

If you want a clear breakdown with examples, see:  Purchase Costs in Andalucía (2026).

Step 3) Appoint an independent property lawyer early

Start with an independent Spanish property lawyer who acts for you (not the agent or the seller). They’ll 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, registry filings) if travel dates are tight. It’s common on the Costa del Sol because buyers often purchase while living abroad.

Step 4) If you need finance, get mortgage guidance before you reserve

If you’re 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:  Financing & Mortgages (Benahavís & Costa del Sol).

Step 5) Apply for your NIE (and line up residency planning if relevant)

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

If you’re 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). Our starting points:

• How to Get a NIE Number in Spain (2026)
• Spain Visa Options 2026 (Costa del Sol buyers)

Step 6) Open a Spanish bank account and prepare “source of funds” evidence

A Spanish bank account makes completion smoother: purchase funds, taxes, notary/registry fees, utilities, and community fees are usually paid locally. Some banks allow remote onboarding (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 (salary, dividends, sale of another property, savings history), plus translated documents if requested.

Step 7) Protect your budget with a smart currency strategy

If you’re paying in EUR from GBP, USD or another currency, exchange movements can materially change the final cost—especially between reservation, deposit (arras), 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.

Step 8) Run legal and technical checks (Costa del Sol essentials)

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/LFO depending on context).
• Community debts: ask for confirmation that community fees are up to date (very relevant in apartment and gated urbanisations).
• IBI and local charges: verify recent IBI receipts and any local waste charge arrangements.
• Energy certificate (EPC): request the current certificate (required for sale listings).
• Technical condition: for older villas or properties with renovations, consider an independent surveyor/architect inspection.

If you’re early-stage and want a structured set of viewing questions, this helps:  Viewing Etiquette & Offer Strategy.

Step 9) Agree the offer, then reserve properly (reservation contract)

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 (furniture, parking, storage)
• the deadline for signing the main deposit contract
• what happens if finance or legal checks uncover an issue
• the refund terms (when it’s refundable and when it isn’t)

Step 10) Sign the deposit contract (arras) 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’re taking a mortgage, the bank will request a full document pack and will instruct an official valuation (tasación). If the valuation comes in below the purchase price, you may need a larger cash contribution or renegotiate.

Step 11) Notary signing (escritura), payment, taxes and registration

Completion happens at the notary, where you sign the public deed of purchase (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 (for example, non-resident tax filings where relevant) are set up correctly.

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

Useful next reads (Costa del Sol buyers)

• Purchase Costs in Andalucía (2026)
• Financing & Mortgages (Costa del Sol)
• Viewing Etiquette & Offer Strategy
• Glossary of Spanish property & legal terms
• Spain Visa Options 2026
• Property portals vs local specialists (what buyers should know)
• Properties for sale across the Costa del Sol (not just Benahavis)