Buying Process

Smartmove Marbella has a wealth of local real estate experience and provide a complete service helping you find, negotiate and manage the purchase of your Costa del Sol property.

It is important that you appoint a good local lawyer to represent your interests throughout the purchase process and to assist with ongoing property and personal obligations. For overseas owners it is usual and practical to grant your lawyer a power of attorney. If you do not already have a lawyer appointed we would be more than happy to put you in contact with a good local lawyer that can assist you on all relevant matters going forward.

We offer a full spectrum of property related services, working with trusted partners to ensure you get the best ongoing care, during and after your property purchase. Whatever you need, the Smartmove Marbella team is always there to give ongoing help and advice.

Reservation Contract

Once you have found your property and have decided to move forward with the purchase, the first step would be for Smartmove Marbella to draw up a “Reservation Contract” representing your offer and the proposed terms of the purchase. This is presented to the vendor to sign and return if they agree to the terms. In case of negotiation, a final reservation document is produced and signed once final terms are agreed.

A reservation contract is used in Spain as a standard mechanism to take a property off market for a specified period whilst all necessary legal checks are completed by your lawyer. The reservation contract details the basic terms and conditions of the proposed purchase, any special conditions and the terms surrounding the return or payment of the deposit. It should be approved and signed by both the buyer and the vendor and presented to both lawyers as an agreement in principle and include –

  • Details of both buyer and vendor
  • Price of the property
  • Property address
  • Proposed dates to sign a Private Purchase Contract (PPC)
  • Proposed dates to complete the purchase
  • Any special conditions
  • Terms of deposit payment or return

A €6,000 deposit holds the property officially “off market“ while searches and due diligence are completed by your lawyer. This deposit is fully refundable in case any irregularities are uncovered during the due diligence process.

This deposit is held by your lawyer or in the client account of Smartmove Estates Marbella SL and can be paid by credit card or bank transfer.

If you are applying for a mortgage it may be possible to reserve your property, subject to mortgage ensuring the return of your deposit should you be unable to successfully arrange finance.

Next steps

Your lawyer will complete a thorough due diligence on the intended property and provide you with a detailed report informing you of their findings and a complete overview of all costs and purchase expenses.

Subject to everything being in good order, your lawyer will arrange for the signing of a Private Purchase Contract (PPC) and 10% of the purchase price to the vendor. This officially secures your purchase and a Notary date will also be agreed for completion and handover.

Private Purchase Contract (PPC)

A private purchase contract is a contract between the consumer and the vendor setting out the terms and conditions of the purchase. The contract will be prepared by your lawyer and will contain -

  • A legal declaration from the vendor that he/she has the legal title required to sell the property.
  • The exact address and dimensions of the property and its features as set out in the “ referencia Catastral ”, the Government registration of the property.
  • The proposed completion date and terms and conditions as agreed by all parties.

Purchase Costs & Taxation

The costs of buying a property on the Costa del Sol vary from 10% to 13.5%

New and Off Plan Properties

Purchase expenses of approximately 13.5%
IVA (VAT) is charged at 10% of the full sales price
Stamp Duty is charged at 1.5%
Lawyers fee of 1% of the purchase price. If you are making a substantial purchase, it may be possible to reduce this fee.
Notary and other expenses approximately 1 to 1.5%.

Resale Properties

Purchase expenses of between 10.5 to 12.5%

On transfer of ownership of a “resale” or “second owner” property, a transfer tax is paid on the full purchase price. Charged on a sliding scale of between 8 to 10%

Tax rate Property Value
8% Up to 400.000€
9% 400.001€ – 700.000€
10% From 700.001€

Lawyers fee of 1% of the purchase price. If you are making a substantial purchase, it may be possible to reduce this fee.

Notary and other expenses approximately 1 to 1.5%.

Taking Finance?

If you are arranging a mortgage in Spain, you will have to allow for additional set up costs and notary fees, potentially another 2 to 3% of the loan amount. If you want to explore financing options, we have excellent contacts with local banks and independent mortgage advisers and would be happy to make an introduction.

New build or first owner properties attract VAT at 10% and a 1.5% stamp duty levy is payable on the full purchase price.

After Sales Service

We offer a full spectrum of additional services, working with trusted partners to ensure your every property related need is serviced to a high standard.

We are the only contact you ever need!

  • Legal and tax advice
  • Mortgages
  • Architects and planning
  • Construction and reform
  • Currency
  • Insurance
  • Furniture and interior design
  • Tradesmen
  • Home security
  • Property management

Thank You