Buying in Spain starts before you sign
A sea view in Marbella, a lock-up-and-leave flat in Estepona or a family villa near San Pedro de Alcántara can feel like an emotional decision. The Spanish conveyancing process is where that excitement becomes a properly protected purchase. It is the series of legal, financial and administrative steps that confirms the seller can sell, the property is as described, and ownership passes to you correctly.
For overseas buyers, the key difference is that there is no direct equivalent of the UK conveyancing chain. A Spanish notary formalises the public deed at completion, but the notary does not act as your personal legal adviser. Your own independent Spanish property lawyer should carry out the due diligence, explain the contract and protect your interests from reservation through to registration.
Reserve the property, but know what you are signing
Once your offer has been accepted, it is common to sign a reservation agreement and pay a reservation fee. This usually takes the property off the market for a short, agreed period while your lawyer begins checks and prepares for the next stage.
Do not regard a reservation form as a harmless holding document. Read the conditions carefully before sending money. It should identify the property, state the price agreed, set out the deadline for legal checks and make clear when the fee is refundable. If the documentation reveals a serious issue, such as an undisclosed debt or an illegal extension, you need a clear route to withdraw.
At this early point, your lawyer can also help you obtain an NIE number. This is your foreigner identification number and is needed for a Spanish property purchase, tax payments and many practical arrangements after completion. Opening a Spanish bank account is often useful too, although the best payment route depends on your circumstances, lender and currency requirements.
The legal checks that make the difference
The most valuable part of the Spanish conveyancing process happens before you commit to the main deposit contract. Your lawyer should obtain an up-to-date Land Registry extract, known as a nota simple, and compare it with the seller's documents and the property itself.
This confirms who owns the home and identifies registered mortgages, embargoes, rights of way or other charges. A properly managed purchase ensures that any seller liabilities secured against the property are dealt with at completion rather than becoming your problem afterwards.
The checks should also look beyond the Land Registry. For a resale property, your lawyer will normally investigate whether the annual IBI property tax has been paid, whether rubbish charges are up to date and whether there are outstanding community fees. Community debt can follow a property, so a certificate from the community administrator is particularly important when buying a flat, townhouse or home on an urbanisation.
Planning and occupation status matter as well. Your lawyer should review the relevant licences and confirm that the built reality corresponds with the registered and cadastral information. This deserves special attention for rural homes, older Andalusian properties, extensions, pools and converted storage areas. A home may be beautiful and still present a regularisation issue that affects future finance, resale or insurance.
If rental income is part of your plan, ask about the position before you buy. A tourist rental licence is not automatically transferred with a property, and local rules, community statutes and planning restrictions can affect whether holiday letting is possible. Long-term rental has a different legal framework, so clarify the intended use rather than assuming every Costa del Sol home offers the same flexibility.
The deposit contract and its deadlines
When the legal position is satisfactory, buyers and sellers usually sign a private purchase contract, often an arras contract. At this point, a deposit is paid, commonly 10 per cent of the purchase price including any reservation sum already paid.
The exact contract wording matters. In a typical arras arrangement, a buyer who withdraws without a contractual reason may lose the deposit, while a seller who pulls out may have to return double the amount received. However, arrangements vary. Finance clauses, furniture inventories, deadlines, completion conditions and remedies for default should all be written clearly rather than agreed informally over messages.
If you are buying with a mortgage, ensure the contract timetable gives your lender sufficient time. Spanish mortgage approvals involve both financial assessment and a valuation of the property. A lender may value the home below the agreed price, which can change the cash you need to complete. Your lawyer should also coordinate with the bank so that the mortgage deed and purchase deed can be signed correctly.
What happens on completion day
Completion takes place before a Spanish notary. The seller, buyer, their representatives and, where relevant, the bank attend to sign the public title deed, known as the escritura. If you cannot be in Spain, it may be possible to grant a carefully drafted power of attorney to your lawyer. This can be practical for international purchasers, but it should only be arranged once you understand its scope.
Before signing, your lawyer will carry out final checks, including a fresh Land Registry search where appropriate, and confirm the payment figures. Funds are commonly provided by banker's draft or an agreed bank transfer structure. Source-of-funds evidence is routine, so organise your paperwork early, especially where funds come from several accounts, a property sale, company income or a gift.
The notary verifies identity, capacity and key aspects of the transaction, reads the deed and witnesses the signatures. Once completion has taken place and payment is released, you receive possession and the keys, subject to any agreed handover arrangements. Meter readings, remote controls, alarm details and an inventory of included furniture are worth recording on the day.
There is one payment that can surprise overseas buyers. Where the seller is non-resident for Spanish tax purposes, the buyer generally retains 3 per cent of the purchase price and pays it to the Spanish Tax Agency. This is not an extra cost for the buyer, but a withholding against the seller's potential capital gains tax liability. It must be handled accurately and within the required timeframe.
Taxes and costs to budget for
Your total purchase costs depend on whether the property is a resale or a new build, its location, price and whether finance is involved. Resale homes normally attract transfer tax, while new properties bought from a developer are generally subject to VAT and stamp duty. Rates and rules can change, and regional treatment matters, so obtain a current calculation for your specific purchase.
You should also allow for legal fees, notary fees, Land Registry fees, administrative costs and, if relevant, mortgage valuation and arrangement costs. As a sensible starting point, many buyers budget roughly 10 to 13 per cent above the agreed price for a typical resale purchase in Andalusia, though this can be lower or higher depending on the transaction. A new development, a lower-priced home or a financed purchase can produce a different result.
Currency planning deserves the same care as legal planning. A small movement in the pound-euro exchange rate can materially change the sterling cost of a deposit or completion balance. Agree your budget with a contingency and consider the timing of transfers before contractual dates are fixed.
Registration is not an optional final detail
Signing the escritura is a major milestone, but the work does not end at the notary. Your lawyer or gestor will arrange payment of the relevant taxes, submit the deed to the Land Registry and obtain the registered title once the process is complete. Registration gives the strongest public protection for your ownership.
This is also the right time to transfer utilities, arrange insurance and notify the community administrator. If the property will stand empty for periods, keyholding, regular inspections and maintenance support can prevent a small leak or missed notice becoming an expensive overseas problem. Owners who plan to let should also establish their tax, licensing and management arrangements before advertising the home.
A purchase should feel exciting, not uncertain
The right Costa del Sol property is only part of a successful purchase. A clear contract, thorough local checks and realistic cost planning give you the confidence to enjoy it from day one. Best in Spain can help buyers move from shortlist and viewing to the right local professionals and practical support after the keys are handed over - so your home under the sun remains a pleasure to own.