Buying property on the Costa del Sol as a non-resident: what you should know before you sign

By Ignacio Capote Cánovas - Octubre 2026

Buying a home on the Costa del Sol from abroad is more straightforward than it looks, but it has its own rules. Most of the problems we see at the firm don't come from the law; they come from doing things in the wrong order or trusting someone who isn't protecting your interest. Let's walk through it calmly.

First, the basic paperwork. To buy you'll need an NIE (your foreigner's identification number) and, in practice, a Spanish bank account for payments and taxes. The NIE can be obtained in Spain or at the Spanish consulate in your country; start it early, because you cannot sign the deed without it.

The purchase journey. It usually runs like this: a reservation agreement (the property is taken off the market), a deposit contract (a sum, normally 10%, is paid and the terms are fixed), and the public deed before the notary, followed by registration at the Land Registry. The most common deposit is the "arras penitenciales" of article 1454 of the Civil Code: if the buyer pulls out they lose the deposit; if the seller does, they return it doubled. It is not a minor detail — you should know which type of deposit you are signing.

The part that really matters: check before you pay. Before handing over a euro we review the Land Registry extract (nota simple, article 9 of the Mortgage Act) to see the true owner and whether there are mortgages, charges or easements. We check the planning status and licences, because an illegal or non-conforming build may not be capable of legalisation. We ask the community of owners for a certificate so you don't inherit debts, confirm the IBI is up to date and, for off-plan new builds, verify the guarantee on the sums paid required by the Building Act.

The taxes of buying in Andalusia. Resale homes are taxed with Transfer Tax (ITP) at a general 7%. New builds are taxed with VAT at 10% plus Stamp Duty (AJD) at 1.2%, around 11.2% in total. Add notary, Land Registry and legal fees, which we quote separately and in advance.

Legal analysis. Two points make the difference. First, anti-money-laundering: Law 10/2010 requires the notary and lawyer to identify the source of funds and the real buyer; having this ready avoids blockages at signing. Second, liability for hidden charges: article 1483 of the Civil Code protects the buyer against non-apparent encumbrances the seller failed to declare, but litigating afterwards is slow and costly, so the real protection is the prior check. That's why we insist: a buyer's lawyer, independent of the agency and the seller, is not an expense — it's the insurance on the transaction.