Marbella property buyer’s guide

Javier Nieto - Oct 10, 2017 - Property Advice

Pure Living, Marbella Real Estate Office

What do I need to know to buy a property in Marbella?

Buying a property is one of the most important decisions made throughout life. Although the buying process can sometimes generate certain doubts in the buyer, it is best to contact a specialised agent who can help in the purchase decision, showing you the best properties according to your needs, as well as accompanying you throughout the process.

At Pure Living Properties we have more than 12 years of experience in buying and selling properties in different areas of Marbella, that is why we want to help you solve the most frequent questions buyers have when buying a property in Marbella.

What is the first step to buying a property in Marbella?

The first step to buying a property in Marbella is to find the property of your dreams. For this, it is vitally important to have the experience of one of our real estate agents, who will guide you by showing you the properties that best suit your needs in the best know areas in Marbella.

Pure Living recommends that you retain the services of a local specialist attorney. We work with the best offices in Marbella, they will recommend the professional that best suits you according to your profile; someone who speaks your language, has extensive knowledge in real estate, tax and commercial contracting and who will also help you get your Golden Visa if you need it in the future.

How can I reserve the property?

To reserve the property it is necessary to sign a Purchase Letter of Intent and a contract of Acceptance and Receipt of Deposit. This agreement will guarantee compliance with the purchase conditions previously agreed upon by both parties.

How much do you pay for the reservation?

The reservation is accompanied by a payment of 1% in our client account in order to secure the property and stop it from being shown to potential clients.

When do you pay taxes for buying a home?

The payment of taxes for the purchase of a property in Spain depends on whether it is the purchase of a first or second transmission home.

If it is a second-hand home, the Property Transfer Tax (ITP) is applied, the taxable base being the price of the sale:

  • Up to € 400,000: 8% (in the case of garages not attached to a home up to € 30,000, 8% applies)
  • From € 400,000 to € 700,000: 9% (in the case of garages not attached to a house from € 30,000 to € 50,000, 9% applies)
  • From € 700,000 onwards: 10% (in the case of garages not attached to a house with € 50,000 onwards, 10% is applied)

Currently, due to the tax cut approved on April 27, 2021, the buyer must pay 7%, regardless of the price of the house, as ITP. However, this reduction applies only to the purchase of homes that are made until December 2021

In the event that the house is newly built, 10% VAT is applied and the 1 .5% of Documented Legal Acts. Similarly, currently and until December 31 of this year, there is a reduction in Documented Legal Acts, which is temporarily set at 1.2%

What expenses does the home buyer bear?

In our city, the buyer is responsible for all expenses involved in a sale, Notary and Property Registry expenses, which represent approximately € 3,000 depending on the price of the property as well as the lawyer’s fees (1% of the price of housing + VAT), and real estate agency fees. Except for the municipal capital gain and the seller’s lawyer.

What taxes does the seller of a home pay?

The seller must pay the Municipal Capital Gain which taxes the increase in the value of urban land.

The amount to be paid as Municipal Capital Gain depends on the cadastral value of the home, the municipality where it is located and the years it has been owned by the seller. You can calculate this amount in the simulator of the Junta de Andalucía.

Taxes and expenses on the purchase of a property in Marbella

Property Transfer Tax (ITP)

Mandatory for the purchase of second-hand homes

7% due to the special reduction valid from April 27, 2021 to December 31 of the same year.

VAT and Documented Legal Acts (AJD)

Mandatory for the purchase of new construction homes

10% VAT + 1 .2% of Documented Legal Acts

Notary and Registry Expenses

3,000 approximately

Legal costs

(Attorney fees)

1% of the total cost of the property + VAT

Surplus Value

Charged to the seller

It depends on the cadastral value of the home, the municipality where it is located and the years it has been owned by the seller.

Taxes and expenses on the purchase of a property in Marbella

To sign the deeds of a new construction home, you need to provide the following documents on the day of the signature before a notary:

  • Previous title or deed
  • Energy Certificate.
  • Community certificate of being up to date on payments
  • IBI payments
  • New construction, decennial insurance
  • First occupation license

The client’s lawyer will take care of the management of all necessary documentation.

For the purchase of a property if the client is not a national, they also need to have a NIE (Foreigner Identity Number) as well as having a Spanish bank account.

How do you get a NIE in Spain?

To obtain a NIE, it is necessary to meet at least one of these three requirements:

  • Being an employee
  • Being self-employed
  • Being a student
  • None of the above but demonstrate financial means and health insurance

As well as carrying out the following steps:

– Request a prior appointment at the Immigration Department

– Fill in the EX18 form, which can be downloaded here

– Once completed you must print it and present the original and a photocopy of it on the day of the appointment, along with your passport, a photocopy of it and the corresponding documentation that proves that you meet at least one of the requirements mentioned above. As well as the bank receipt of having previously paid the Model Rate 790 Code 012.

Once all the most frequent queries when buying a property in Marbella have been resolved, from Pure Living Properties we want to state that the real estate sale process in Spain is an extraordinarily safe process as the transmissions are channelled through a “double public system of guarantees ”, made up of the Notary and the Property Registry. Therefore, we encourage all potential buyers interested in Marbella to take the opportunity to acquire a property in one of the most recognised areas of the Costa del Sol.

Javier is the founder and CEO of Pure Living Properties. Born and raised in Marbella in an entrepreneurial family who settled on the Costa del Sol in the 1960s, when Marbella’s real estate and tourism industry was just a fledgling market, Javier is an expert connoisseur of Puente Romano, which he calls home, and the Golden Mile, but also of the best areas, projects and companies, as their owners and developers have been among his inner circle since childhood.

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Javier Nieto CEO +34 952 868 945 Whatsapp