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Buying Property in Marbella: The Guide by Teo, the Real Estate Alchemist

At Teo, the Real Estate Alchemist, our mission is to help you find the ideal home that suits your lifestyle, preferences, and financial goals. With our comprehensive guide and many years of experience, we go beyond a diverse selection of listings. Thanks to our extensive network of trusted real estate professionals, you’ll have access to every property available in the market.

Table of Contents

• What Should Foreigners Know About Buying Property in Marbella?
• What Is a NIE Number and How Do You Get One?
• Financing Options and Guidance
• The Buying Process: Key Stages
• Taxes & Fees on Property Purchases in Andalusia
• Ongoing Property Taxes in Andalusia
• Ready to Buy in Marbella?

You don’t have to make this journey alone

Our personalized approach means your dedicated agent will be your trusted partner—handling tailored property searches, showings, and all legal and logistical details. Our goal is for your home-buying experience to be smooth, stress-free, and enjoyable.

What Should Foreigners Know About Buying Property in Marbella?

Buying property abroad might seem intimidating, but our expert team will guide you every step of the way.

What Is a NIE Number and Why Do You Need It?

The NIE is a foreigner identification number—a necessary tax code for anyone conducting official business in Spain, from buying property to opening a business or managing taxes. Your lawyer can help you obtain a NIE number and will often handle this process for you after being granted power of attorney. We work with highly experienced attorneys who make sure everything runs smoothly.

Financing Options and Guidance

Most buyers need to secure a mortgage before purchasing. We advise arranging your financing before your property search. Pre-approval shows sellers you’re serious and lets you focus on homes within your true budget. Non-residents usually finance up to 70% of a property’s value, with banks requiring income proof, recent tax returns, and your credit history.

The Buying Process: Key Stages

Whether you’re investing or buying for yourself, the steps are slightly different. At Teo, the Real Estate Alchemist, we believe:

• If you’re an investor: Use logic to ensure strong returns.
• If you’re a private buyer: Let your intuition lead you to the right home.

Reservation Contract

You’ll sign a reservation contract and pay a deposit (typically 1% of the price) to secure the home and remove it from the market for about 14 days. The deposit is usually non-refundable, and your lawyer will hold it in escrow.

Due Diligence

Next, your lawyer checks the legal status of the property—making sure it’s free of debt, utilities are paid, and any planned changes are possible. This happens during the reservation period (usually 14 days).

Private Purchase Contract (PPC)

If you require a mortgage or any special conditions, you’ll sign a PPC and pay 10% (minus reservation). This is legally binding—if the buyer withdraws, the deposit is lost; if the seller withdraws, they must return double.

Title Deed & Registration

If there’s no mortgage, you go straight to the final contract at the notary, pay the balance (minus deposit), and complete registration. Notary and registry fees are typically €500–€3,000, depending on value and complexity.

Taxes & Fees on Property Purchases in Andalusia

Understanding tax obligations is vital for an informed purchase. Here’s what you’ll encounter:

• Transfer Tax (ITP): On resales, between 6% and 10% (normally 7% in Andalusia), with reductions for main residences under €150,000, special conditions, and resellers.
• Capital Gains Tax (Plusvalía Municipal): Based on the increase in land value, usually paid by the seller.
• VAT & Stamp Duty (AJD): For brand new properties—10% VAT plus 1.2% stamp duty.
• Cadastral Value: Government-set value used for calculating IBI and Wealth Tax.

Ongoing Property Taxes in Andalusia

Once you’re an owner, keep these in mind:

• IBI (Property Ownership Tax): 0.4%–1.1% annually, depending on municipality.
• Non-Resident Income Tax: 24% for non-EU owners renting (no deductions), 19% for EU/EEA with deductions.
• Resident Income Tax: On global income (19%–47%), with deductions for mortgage and maintenance.
• Capital Gains Tax on Sales: Residents pay 19%–26%, some over-65s exempt. Non-residents pay 24% or 19% for EU.
• Wealth Tax: Effectively removed for assets over €2M in Andalusia; national “Solidarity Tax” applies for assets over €3.7M.
• Inheritance & Gift Tax: Significant reductions in Andalusia for close family, but non-residents may owe tax abroad.

Ready to Buy in Marbella?

Buying a home in Marbella is a major step! With Teo, the Real Estate Alchemist’s deep market knowledge and connections—experienced lawyers, mortgage experts, and property professionals—we help you have a safe and rewarding experience.

Ready to focus on a certain area or neighborhood?