Buying a home on the Costa del Sol as a non-resident

By Ignacio Capote Cánovas - Octubre 2026

Buying a home on the Costa del Sol from outside Spain is simpler than it looks, but it has its own rules. Most of the scares we see at the firm don't come from the law, but from doing things in the wrong order or trusting someone who isn't defending your interest. Let's take it calmly.

First, the basic paperwork. To buy you'll need the 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 your country's consulate; start it early, because without it the deed can't be signed.

The purchase journey. It usually goes: reservation contract (you take the home off the market), earnest-money contract (a deposit, normally 10%, with the conditions set), and public deed before a notary, followed by registration at the Land Registry. The most common earnest money is the penitential deposit of article 1454 of the Civil Code: if the buyer pulls out they lose the deposit, and if the seller does they return it doubled. It's worth knowing which type you're signing.

The part that really matters: check before you pay. Before handing over a single euro we review the Land Registry extract (article 9 of the Mortgage Act) to see who the real owner is and whether there are mortgages, charges or easements. We check the planning status and licences, because illegal or non-conforming work may not be legalisable. We request the community of owners' certificate so you don't inherit debts, confirm the IBI is up to date, and, in 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 the general rate of 7%. New builds are taxed with VAT at 10% plus Stamp Duty (AJD) at 1.2%, around 11.2% in total. Added to that are notary, Registry and fees, which we quote separately and in advance.

Legal analysis. Two points make the difference. First, money-laundering prevention: Law 10/2010 requires the notary and lawyer to identify the source of funds and the real buyer; having it ready avoids hold-ups at signing. Second, liability for hidden charges: article 1483 of the Civil Code protects the buyer against non-apparent encumbrances the seller hasn't declared, but litigating afterwards is costly and slow, 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.