Buying a house in Spain is an important step, whether you are looking for a holiday home, a second property with rental potential, or planning to move permanently. It is a process that requires considering various factors.
A good starting point is to be clear about your personal goals. Do you mainly want to use the house occasionally for relaxation? Are you looking for a property that can also serve as an investment? Or do you want to live there permanently? Your goal determines the type of property that suits you — from apartments to villas — as well as the location and the applicable rules and tax obligations.
During the process, we look beyond the house itself and consider the bigger picture, such as:
The purchase process step by step
Financing options
Local rental regulations, like the tourist license required in Andalusia
Tax rules in both the Netherlands and Spain
Legal considerations, especially when emigrating
Whether you are just starting to explore or already searching seriously, it is important to be well informed. This helps ensure your decisions are well thought out and your dream of living in Spain becomes realistic and achievable.
Determining Your Budget
Your budget influences the type of property, location, and your bidding options. Possible financing sources:
Personal savings or proceeds from a sale
Mortgage from Spanish banks (up to 70% for non-residents)
Equity from a Dutch property through a second mortgage
Other options: family contributions, early pension withdrawal, rental income included
A local mortgage advisor is essential for proper guidance. No worry, we have them ready!
Purchase Costs
Besides the purchase price, expect additional costs of about 10-14%, including:
Transfer tax on resale properties (7%) or VAT on new builds (10%)
Notary and registration fees (1%)
Lawyer fees (1%)
Realtor fees (usually paid by the seller and included in the sale price)
Mortgage costs when financing
Types of Real Estate & Property Styles
Once you know your goal and budget, it’s time to decide which type of property suits you best. On the Costa del Sol, there are many options, each with its own pros and cons.
New developments offer modern, energy-efficient homes with warranties, but you may have to wait for completion and pay VAT (10%).
Resale properties are immediately available, often more spacious and full of character, but may require more maintenance.
Property types include:
Apartments: ranging from ground floor with garden to penthouses with rooftop terraces.
Townhouses: offering more space than apartments, often with a garage and rooftop terrace.
Villas: detached for maximum privacy or semi-detached with shared facilities.
Locations along the Costa del Sol
Location is crucial: it affects your living experience, rental potential, and property value growth.
Málaga to Marbella: lively cities and coastal towns, perfect for those who enjoy culture, tourism, and a dynamic atmosphere.
Marbella to Sotogrande: more luxurious, quieter areas focusing on privacy and high-end amenities.
When choosing, consider distance to the airport, rental potential, local facilities like schools and golf, and the atmosphere (quiet or vibrant).
Searching by Yourself & Using an Agent
Once you know what you’re looking for, you can start searching for properties on your own or choose to work with a real estate agent. Both options have their advantages and things to consider. Here’s how the process works, what you can do yourself, and what to look for when choosing an agent (including myself).
Searching by Yourself – Online Tools
The internet is the perfect place to begin your property search. There are various websites where you can find homes that match your criteria. You can filter by property type, location, price, number of bedrooms, and more, making it easier to find what you want.
Tip: Be critical of photos and descriptions, and always check the location carefully. Beautiful photos don’t always guarantee a great location.
Advantages of Searching by Yourself
Full control over your search
Set your own pace
No obligation to work with an agent
Disadvantages of Searching by Yourself
It can be very time-consuming to research everything thoroughly
Listings aren’t always up-to-date or complete
Limited local market knowledge can reduce your options
Choosing an Agent
A real estate agent guides you through the entire process. I can find properties that often aren’t listed on the big websites and provide valuable local market insights. Benefits of working with an agent include:
Local expertise: targeted searches for properties that truly fit your needs
Time-saving: I filter listings so you only see relevant homes
Negotiation skills: I help you get the best price
Legal and administrative support: advice on all necessary steps and paperwork
This way, finding your ideal home becomes easier and more secure.
Congratulations on finding your property! Now the real work begins. The buying process in Spain involves several important steps:
Making an offer and negotiating
You place an offer to show your interest. Negotiations are often possible depending on the asking price and market conditions. A real estate agent can assist you.
The buying process
Reservation: You temporarily reserve the property with a contract and a deposit.
Preliminary contract: This contract sets the conditions and usually requires a 10% deposit.
Financing: Arrange your mortgage early to avoid surprises.
Notary & transfer: At the notary’s office, you sign the official deed (Escritura).
Taxes and fees: After the transfer, you pay transfer tax and registration fees.
What to watch out for
Check all documents carefully, ask about community fees if buying an apartment, and ensure the property has no outstanding debts.
Lawyer and notary
The lawyer handles legal checks and protection.
The notary manages the official transfer.
Costs for both usually range from 1–2% of the purchase price.
How the Process Works
After purchasing your property, it is important to understand the rental possibilities well. This module covers everything you need to know about renting out property in Spain, from licenses to costs and taxes.
Rental Licenses
In Spain, you need a license to offer your property as a holiday rental. Rules vary by region; on the Costa del Sol, licenses are mandatory. Renting without a license can result in fines.
Managing the Rental
You can manage the rental yourself using platforms like Airbnb, where you are responsible for guests, cleaning, and maintenance. Alternatively, you can hire a rental management company to handle everything for you, which is useful if you don’t live in Spain or have limited time.
Costs of Renting
Renting involves costs such as cleaning, maintenance, municipal taxes, and community fees. Also, keep in mind seasonal fluctuations in rental prices.
Renting via Platforms
Popular platforms include Airbnb (for short-term stays) and Booking.com (also suitable for longer rentals). A good presentation with photos and descriptions increases your chances of bookings.
Taxes on Renting
You must pay taxes on rental income, even as a foreigner. Usually, no VAT applies for short rental periods, but longer rentals may have additional taxes. Non-residents pay a special tax. It is advisable to consult a tax advisor.
Costs and Taxes in Spain
When buying a property in Spain, you need to consider additional costs beyond the purchase price. These include transfer tax (usually between 8% and 10% for resale properties), notary fees, registration fees, and lawyer fees. Together, these costs can amount to about 10-12% of the purchase price.
As a homeowner, you will pay annual local taxes (IBI), waste collection fees, community fees (for apartments), as well as insurance and maintenance costs. These expenses vary depending on the location and type of property.
If you rent out your property, you must pay taxes on rental income. Non-residents usually pay 24%, while residents face a progressive rate up to 47%. For short-term rentals via platforms like Airbnb, a 10% VAT may also apply.
When selling your property, there are taxes such as the municipal capital gains tax (plusvalía municipal) and income tax on the profit made (usually 19% for non-residents). It is advisable to consult a tax advisor beforehand to understand your financial obligations and possible deductions.
Taxes in Spain: Key Points
When owning property in Spain, you should consider several taxes:
IBI (Property Tax): Annual local tax based on cadastral value of the property (0.4%-1.1%).
Plusvalía Municipal: Tax on land value increase when selling the property.
Rental Income Tax (IRPF): Tax on net rental income; progressive rates up to 47% for residents, fixed rates (19%-24%) for non-residents.
Tax Returns: Annual filing required, even if you do not rent out the property; non-residents use Modelo 210.
VAT (IVA): 10% on short-term tourist rentals.
Other Taxes: Wealth tax (over €700,000 net assets), inheritance tax varies by region and relationship.
Tax Benefits: Possible deductions for mortgage interest and maintenance costs.
Inheritance and Property Transfer in Spain
When a property owner in Spain dies or donates property, taxes apply.
Inheritance tax (7.65%–34%) depends on the property value, region, and heir’s relationship to the deceased.
Gift tax has similar rules, with lower rates for close relatives.
Regional variations are significant; some areas like Andalusia offer favorable conditions for family members.
The inheritance process includes declaring heirs, paying tax, and transferring ownership through a notary.
Estate planning through a clear will or lifetime gifts can reduce tax burdens.
Purchase Process:
Determine budget + financing (incl. additional costs).
Choose location and type of property.
Work with a real estate agent and their team of experts.
2. Important Considerations:
Spanish law differs from Dutch law.
Be aware of taxes and ongoing costs.
Rental often requires a license.
Consider annual taxes (IBI, plusvalía, rental income tax).
Ensure proper insurance coverage.
3. Investment or Personal Use:
Potential for rental income.
Consider selling if property value increases.
Buying property in Spain is an exciting step, whether you're looking for a holiday home, a rental investment, or a permanent residence. With the right preparation and guidance, the process can be smooth and successful.
At Janson Estate, we support you every step of the way – from house hunting to handing over the keys. Feel free to contact us if you have any questions or need assistance.
Good to know: We've also created a more comprehensive guide that dives even deeper into all key aspects of the buying process, taxes, legal matters, and rental options. If you're interested, you can request this free guide below.
Tell us your wishes and we will send you all of the information by e-mail. Or call us: +34 603 529 900
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