Property in Spain
the ideal investment
The Costa del Sol
Property sales on the Costa del Sol have always been on the rise in this area, and this year is showing an even higher interest rate in property investments. This could be the best time to invest in your holiday or retirement home on the Costa del Sol. There are thousands of properties being delivered to new owners every year.
Be it apartments or villas, right by the seafront or in the beautiful countryside, we have the right property listings for any buyer with any price range in mind. Big or small, this is the right time for your investment for your future in the Spanish sun.
From Apartments to Villas
In the property market, location has always been the most important factor. The southern coast of Spain, the Costa del Sol, has always been a hotspot of property investments in Europe. Nothing can compare to the sandy beaches, sunshine, and warm climate, that the south of Spain can offer in such abundance.
Be it high-end villas or seafront apartments, Fuengirola has always been the ideal property investment region over the past few decades.
With just 25kms to Malaga airport, easily reached by train from the centre, Fuengirola has an 8 km long sandy beach coastline with hundreds of tapas bars and restaurants right on the seafront and in the winding backstreets. It offers events and entertainment all year round with traditional, religious and international festivities. Along with a Water Park, Zoo, and the historical El Castillo overlooking the town, Fuengirola has developed immensely from the small fishing village it was back in the 70s.
8km long sandy beach
25k to Malaga airport
hundreds of tapas bar
historical El Castillo
BUYING A PROPERTY IN SPAIN
Buying a house or apartment in Spain is not complicated, but is a bit different from what we are used to in other areas of the world. A property purchase takes about 6-8 weeks and everything is done in Spanish. There is a lot to keep track of, and we help you through this process. We recommend that you always hire a solicitor who will guide you through the legal process as well.
VIEWING AND BIDDING
After viewing, bidding and negotiation,
buyer and seller agree on a sales price.
(Contrato de Reserva)
A simple document setting price and payment terms. 6,000 Euros are payable as security deposit. The seller then removes the property from the market during a reservation period (of about 8-14 days) and documentation is retrieved from the land registry to make sure all information regarding the property is correct.
LEGAL EXAMINATION AND GATHERING OF DOCUMENTATION FOR THE PROPERTY
The solicitor contacts the vendor’s legal representative and gathers all pertinent documentation for the property and checks that all permits and licenses from the municipality are in order and that there are no outstanding debt, mortgages, costs, tenants and taxes pending for the property.
PRIVATE PURCHASE CONTRACT
(Contrato de Compraventa)
Once the solicitor has investigated the property and confirmed that everything is in order, the buyer and seller can sign the purchase contract. The contract is very detailed and contains a comprehensive legal description of the property itself. It also includes all buyers’ and sellers' personal details, purchase price, schedule of payments, estimated date of signing the title deed and other legal clauses. In connection to signing the contract, the buyer usually pays 10% of the total sales price of the property.
(Escritura de Compraventa)
In Spain, the last step in a property purchase is at a notary office. It is a formal act and both parties, both buyers and sellers, either with their solicitors or the solicitors on their own with a power of attorney from their clients, meet with the notary to sign the title deed. In the same act, the buyer pays the remainder of the agreed sales price to the seller and the seller hands over the keys of the property to the buyer. From this moment on, the buyer is the rightful owner of the property. The title deed must be signed by three parties: the seller, the buyer and the notary.
REGISTRATION OF THE PURCHASE
A few days after signing the title deed, it can be retrieved from the notary, after which it is handed over to the property register, which ensures that the property is officially registered in the name of the new owner. Now all costs, taxes, transfer fees and other legal expenses are paid. Your solicitor makes sure that all contracts such as water, electricity, owner association etc. as well as various taxes related to the property are signed over to the new owner and and paid by direct debit from the new owner’s bank account.
DO NOT FORGET TO...
When you buy a property on the Costa del Sol, you must always expect that there are some taxes and fees to complete the purchase. There are different amounts depending on whether the purchase is a resale or new development. When buying a Spanish property, the tax differs if you buy from a developer or if you buy from a private owner of a property.
Transfer fee for resale property
8 % up to 400 000 euros
9 % between 400 000 - 699 999 euros
10 % over 700 000 euro
1% fees to the notary and land registry
1% + VAT to the solicitor.
VAT on the purchase of new development
10 % VAT (IVA) (Impuesto sobre el valor añadido)
1,5 % stamp duty (IAJD lmpuesto de Actos Juridicos Documentados)
2,0 % fees to the notary and land registry
1% + VAT to the solicitor.