Costa del Sol: Total Costs & Buying Process assisted by Trusted Lawyer

Taxes on acquisition:

Total Acquisition Costs Estimation:

State Taxes:

Notary fees

approx. 2.200 EUR for a property that values 350.000 EUR and approx. 2.700 EUR for a property that values 800.000 EUR

Lawyer’s fees

Optional Financing Costs: 1.21% VAT included, applied to the amount borrowed

Taxes after acquisition:

Property tax (IBI), including local garbage tax, payable annually to the town halls in Costa del Sol. For buyer orientation, this typically represents approximately 0.2%–0.3% of the property’s market value per year. The actual calculation is based on the cadastral value, using coefficients set by each municipality.
Rental income is subject to tax at 24% for non-EU residents and 19% for residents of the EU / EEA (including Norway and Iceland).
Non-resident owners are required to pay Non-Resident Income Tax (IRNR) on an imputed income for any periods when the property is not rented, even if it is otherwise rented out during the year. For buyer orientation, this tax typically represents around 20% of the IBI, as both are calculated based on the cadastral value.

Taxes for resale:

19% profit tax applies and a variable land value tax (Plusvalia), applied after the first year of ownership, for the increase of the land value.

Delegate all the buying process, including assistance for AML/KYC (that can be very complicated in Spain)
Covers potential fraud risks through complete due diligence about the property
Covers warranty clauses and repair terms with related penalties
Introduction of penalty or termination clauses for failure to comply with construction terms or other contractual obligations
All funds are included in the customer's account. Personal payment can be made or based on a payment mandate, payments can be made to the law office.

Title deed about ownership and property details
Consult Property Registry to ensure there are no debts/mortgages
Land Registry - proving ownership and exact details of property
Check the validity of the escrow account
Verify 1st License of Occupation necessary for rental license and construction license.
Documentation in order to obtain utility contracts
Energy Performance Certificate
Mortgages, leases, rentals encumbering the project
Community of Residents/ Homeowners association statutes - need to validate for rental properties
Purchase Agreement - all the documents are in spanish and must be checked and explained

Signing the Title Deed in front of the notary public, on behalf of the client
Payment of the invoice at the notary's office and collection of official documents from the notary's office
Payment of property transfer tax
Registration of the property at the Land Registry in the name of the new owner
Obtaining the certificate from the Land Registry
Obtaining the Digital Certificate on the basis of which the owner registers with the public administration and utility providers
Payment of the Land Registry invoice
Change of Holder / Drafting the contract for Water and Electricity, IBI, Garbage
Registration in the Owners Association
Obtaining the rental license
Accounting - submission of declarations for non-residents