Buying in Marbella as a foreigner: the steps and what it really costs

The question we get asked most is not what the house costs. It is what it costs on top of the house, and what paperwork is involved. This is what we go through on the first call, written down so you can read it beforehand.

1. The NIE, before anything else

The NIE is your identification number as a foreigner in Spain. Without it you cannot buy, open a bank account, or put the electricity in your name. You apply at a police station here or at the Spanish consulate in your country, and it takes anywhere from a few days to a few weeks depending on where you apply.

It can be delegated to a lawyer with a power of attorney. That is what almost everyone who does not live here does: it saves a trip.

2. An independent lawyer, not the other side’s

This is the most important thing on this page. Your lawyer must be yours — not the one the seller recommends, and not the one the agency recommends for a commission. We will give you three names and you choose, or you bring your own.

What they have to check before you sign anything: that the seller is who they say they are, that the property has no charges or unpaid community fees, that what is built matches what is registered, and that there is no planning infringement. On the Costa del Sol that last one is not a formality: there are beautiful houses with extensions that were never licensed.

3. Reservation, contract and notary

The usual route is three steps:

The reservation. Between €6,000 and €20,000 to take the property off the market, normally for a couple of weeks while your lawyer does the checks.

The private purchase contract. Signed once the checks are done. Ten per cent of the price is standard. If you pull out, you lose it; if the seller pulls out, they pay you double.

The deed. Before a notary, with the balance paid. Keys are handed over that same day. One to three months usually pass between contract and deed, longer if there is a mortgage.

4. The costs on top of the price

Budget an extra 10 % to 13 % on the purchase price:

• Resale property: transfer tax, which in Andalucía is 7 %.
• New build: 10 % VAT plus stamp duty.
• Notary and land registry: between 0.5 % and 1 %.
• Lawyer: around 1 % plus VAT.
• If there is a mortgage, add the valuation and the mortgage costs.

Tax rates change with each regional government. The figures above are the ones in force as we write this; confirm them with your lawyer before you do your final sums.

5. After you buy

What you pay every year, and what is worth knowing before you sign: council tax (IBI), refuse collection, community fees if there are any, insurance, and non-resident income tax if you do not live here permanently. On a villa with a pool and garden, add the maintenance, which is not trivial.

If you want the actual numbers for one particular house, ask us. We have them before you come to see it.