Marbella Property Buyers Guide

This buyers guide provides valuable information and insights into various aspects of buying property in Marbella, including legal considerations, financial aspects, and tips for a successful property purchase:

• The starting point would be to decide on a reliable and knowledgeable real estate agent who can assist you in guiding through the sales procedure. At Engel & Völkers Marbella, our tailored strategies are designed to maximise your success in the mid-upper market. We’re strategically positioned to offer you local expertise that spans across various neighbourhoods and communities. Our goal is not just to sell properties, but to provide you with a seamless and satisfying experience.
• When searching for a real estate agent, it’s important to pick one with a good reputation and physical location. Also it’s crucial to find someone who has experience, especially in the Marbella area. They should have experienced salespeople, effective advertising tactics, and proven success in transactions.
• At Engel & Völkers, with six convenient offices throughout Marbella, poses agents who have the knowledge and experience of micro areas as well as the local market, enabling our client to get the house of their dreams at the best possible price in a relaxed and carefree manner.

• About Location:
  • Understand the different neighbourhoods and areas within Marbella.
  • Research the local amenities, transportation, schools, and recreational facilities available in the chosen area.
• About Property types:
  • From luxurious villas with stunning sea views to modern apartments nestled in vibrant neighbourhoods, charming townhouses, contemporary penthouse living or plots of land across sough-after areas of Marbella.
• About Budget and Financing:
  • Determine your budget and explore financing options, including mortgages and loans.
  • Consider additional costs such as property taxes, legal fees, and maintenance expenses.

• Hiring a lawyer
  • For those looking to purchase property in Spain, Engel & Völkers strongly recommends to work with a local lawyer because in Spain the laws may vary depending on the locality. It is crucial to have a legal advisor who speaks the same language as the buyer for a better understanding, since it can be overwhelming to find one remotely after you have already started the purchasing negotiation process. Moreover, the buyer’s lawyer is in charge of drafting the purchase contract.
  • It’s not mandatory for you to be present in Spain as long as you grant power of attorney to your lawyer.
  • Engel & Völkers offers a list of highly qualified lawyers to advise you on the necessary paperwork, taxes to be paid and any other related issues.
  • Lawyer’s Fees: 1% + VAT.
• Due Diligence:
  • Conduct thorough due diligence on the property, including checking property boundaries, utilities, and any potential zoning restrictions.
• Taxation and Fees:
  • Understand the applicable taxes, including:
    • Wealth Tax: which is imposed on individuals who are Spanish tax residents and their net assets all over the world. It also applies to non-residents who possess goods and rights in Spain or have the ability to exercise them. The tax is charged based on the assets held by the taxpayer as of the end of the year, 31 December.
    • VAT (IVA) and STAMP DUTY (AJD): 10 % + 1.2% for new developments, 7%+ 1.2% for re-sales, and 21% + 1.2% for villas, apartments, or plots of land.
  • Plan for ongoing maintenance fees and community charges, especially if buying within a residential complex: IBI – This is the value given to each property by local tax authorities and can be found on your IBI tax documents. This value is generally lower than the actual market value of the property. The IBI tax is typically calculated as a percentage ranging from 0.4% to 1.1% of the cadastral value – and municipal taxes such as “Basura” that must be paid to the Town Hall (Ayuntamiento) for rubbish removal. The amount due varies from one town to another and is normally paid during the months of April/May every year.
• Residency and Immigration:
  • If purchasing as a non-resident, consider the potential benefits of obtaining Spanish residency through the “Golden Visa” program.
    • The “Golden Visa” program is a special type of residence permit created especially for all citizens from outside the European Union who would like to make a significant investment in Spain, in order to move to and obtain
      residency in the country.
    • If you buy real estate property worth €500,000 or more, you will receive an initial Golden Visa valid for one year, and can be later renewed for 2 years and exchanged for a Spain resident permit, as long as you keep your original investment. The residence permit can then be renewed indefinitely, and if you intend to actually live in Spain, then you can apply for permanent residence after five years of continuous residency.
    • No need to become a tax resident in the country. You just need to visit Spain once per year in order to renew this permit.
    • You can do a joint application and include both your spouse and children, so they will also get their residency in Spain with just your investment.
  • Required documents for the Golden Visa in Spain:
    • Proof of purchase showing that the property has been purchased at least 90 days before your visa application is submitted.
    • Spain Visa application form.
    • NIE number and/or original and copy of your passport.
    • A recent coloured photograph with a white background.
    • Original and photocopy of a medical certificate with an original translation issued no more than 90 days before your appointment date.
    • Certified copy of your criminal record certificate.
    • Proof of payment of the visa fee, which must be paid in the local currency
      (Euros).
    • Proof of lawful residence.
    • Proof of the legal representative’s identity and capacity in cases where the application is submitted through one.
  • The exposed above applied for British citizens, who must follow the same process as non-citizens of the European Union.
  • If purchasing as a EU citizen:
    • N.I.E. (Identification number for foreigners). Any buyer who is not of Spanish nationality must obtain a “NIE” from the Local Police. This number is mandatory for any real estate transaction.
    • Residence permits. It is not necessary to have a residence permit to buy a property in Spain, unless you plan to live in Spain. In that case, you will need to apply for tax residency in Spain.
  • It’s not mandatory for you to be present in Spain while applying for the visa or permit. However, it is essential to go there for a pre-visit to observe all the investment options available and create a bank account in the nation itself.

• Arrange property viewings to assess the condition of the property and its surroundings.
• For re-sales if you finance the purchase, consider hiring a professional inspector to evaluate the structural integrity and overall condition of the property.
• KYC check for customer identification, and in compliance with the Personal Data Protection Laws in Spain (GDPR). It is the mandatory process of identifying and verifying the client’s identity when opening an account and periodically over time. This consultation includes all the company accounts and finances, as well as personal incomes.

• At EV we are expert in negotiate the purchase price and other terms, in order to get the best deal possible for our client. We manage the formal offer contingent upon a successful inspection and legal review.
• The offer should include information such as the conditions and terms, the price, the time frame for completion, any special requirements, the details of the person making the offer, and the lawyer who will be instructed. Additionally, the offer should specify the amount of the deposit that is to be paid.

• 1% of the price of the house +/- 5.000 – 20.000 €

• Once the terms are agreed upon, a private purchase agreement – contrato de arras – is typically created by the buyer and signed, accompanied by the 10% deposit.

• Finalize the transaction by signing the “Escritura” (deed) in front of a notary.
• Not all countries have a notary to verify documents as they do in Spain. So who is the notary? Notaries are professionals who are unbiased and easy to approach. They are available to offer advice, assist you and ensure that your contract or transaction is in compliance with the law. Notaries offer a guarantee of legitimacy and security to both individuals and the state.
• Property notary registry fees +/- € 3,000
• The property is then officially registered in your name with the local land registry.

• If the property will be vacant for part of the year, consider property management services to ensure its upkeep.
• At Engel & Völkers we also have available a short-term rental department for Luxury Holidays in Marbella, which is a highly recommended option for any occasional resident who wishes to enjoy a totally comfortable stay in our country.

In summary:

If a buyer in Spain has all their necessary paperwork sorted- lawyer, NIE number, and open bank account- then they’ll have a stronger standing when making a purchasing offer because they’re able to quickly place a deposit following acceptance, already having taken care of everything else.