Buying property on the Costa del Sol

HBC Costa del Sol Properties recommendations on the buying process in Costa del Sol, Spain.
We are property specialists and have partners with over 20 years of Real Estate experience on the Costa del Sol and are dedicated to helping customers find their ideal property. In addition we will be able to recommend you independent legal and financial advisors to help you feel comfortable with every phase of the buying process.


Once you have found your ideal property on the Costa del Sol and have decided that you wish to move forward with the purchase, The next step would be for HBC Costa del Sol Properties to draw up a “Reservation Contract”

A reservation contract is used in Spain as a standard procedure to reserve a property for a specified period of time whilst your lawyer conducts the due diligence


The reservation contract would set out the basic terms and conditions of the purchase and would then be approved and signed by both the buyer and the vendor. This is only a temporary reservation contract . Such a document would include:

  • Full name of the buyer and vendor
  • Price of the property
  • Property address
  • Date to sign a “private purchase agreement contract”
  • Other special conditions (subject to finance)
  • Deposit amount placed to reserve the property

A 6,000 Euro deposit will secure the property while the “due diligence” is being conducted by your lawyer. This deposit can be paid by credit card, bank transfer or in cash, it can be held in a client account o with a lawyer of your choice. The 6,000 Euros serves to reserve the property whilst your chosen lawyer conducts the due diligence and you may also want to arrange a mortgage during this time. This reservation deposit is fully refundable in the event that your lawyer should discover any legal impediments pertaining to the said property. Should you continue with your purchase after the due diligence the 6,000 Euros will be used towards the purchase price.


Once your lawyer has conducted a full and thorough due diligence, he will inform you of the findings and discuss with you moving to sign a private purchase contract with the vendor .


A private purchase contract is a contract between the buyer and the vendor, setting out the terms and conditions of the sale. The contract will be drawn by your lawyer and will contain:

  •  A legal declaration from the vendor that he/she is legally able to sell the property .
  • The address and dimensions of the property and its features as set out in the ” Government registration of the property.( referencia catastral)
  • The completion date etc
  • The agreed terms and conditions set forth the buyer and the vendor

The buying costs in Spain vary from 10% to 13.5% of the purchase price, broken down as follows:

  • 10% IVA (VAT) on NEW properties, 8% to 10% IVA (VAT) on re-sales depending on price category
  • 1% Notary fee of price of purchase.
  • 1% Legal fees, charged by your lawyer to conduct the due diligence
  • 1.5% Stamp Duty Tax ( A tax charged to make all documents legally effective)
  • If you should require a mortgage, you should calculate an average of 1- 1.5% cost for the set up fee of a mortgage with a local Spanish bank


We have gathered a list of the most commonly requested services. We understand when moving permanently or on holidays in a different country, there could be many questions on  “How things work here in Spain’s Costa del Sol” We will be able to advise on any requests you may have and will refer you to a reputable company or professional at the earliest convenience .

For example:

  • Legal advice
  • Property and Health insurance
  • Wealth management
  • Financial advisor
  • Currency exchange
  • Builders
  • Furniture packages
  • Interior design
  • Kitchen suppliers
  • Contracting water & electricity
  • Handymen
  • Surveyor
  • Property Management
  • Satellite/Internet services
  • Car rental
  • Home security
  • Advice on Schools and Banking
  • Arrangement of NIE number
  • Doctor and medical referral
  • Babysitters
  • Locksmith


Buyer’s Guide continued here:
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