Buyer’s Guide – Own More Than a Home. Own an Opportunity.
Real estate isn’t just about finding a property—it’s about making the right move at the right time. At Bosque & Colina Partners, we don’t just sell homes—we create opportunities. With years of experience in real estate development, investment strategy, and market analysis, we ensure that every property we recommend is not just a home but a strategic asset.Whether you're looking for a luxury villa in Marbella, a modern penthouse in Benahavis, or a high-return real estate investment in Estepona, we provide expert guidance, off-market access, and a seamless, end-to-end buying process.
Buying in Costa del Sol – What Makes It a Smart Investment?
High Rental Demand & Strong Capital AppreciationCosta del Sol is one of Spain’s most in-demand real estate markets, known for:
- Luxury coastal properties with year-round demand
- Growing tourism and expatriate communities
- High rental yields and property value appreciation
- Marbella – Luxury villas, golf-front estates, and high-end developments
- Estepona – Up-and-coming area with excellent investment potential
- Benahavís – Exclusive gated communities with panoramic views
- Sotogrande – A hub for high-net-worth buyers and elite golf courses
Buying Property in Spain as a Foreigner
Understanding the NIE Number – Your Key to Buying Property in SpainTo buy property in Spain as a non-resident, you need an NIE (Número de Identificación de Extranjero). This is your personal tax identification number, required for property purchases, tax payments, mortgage applications, and legal transactions. It’s one of the first steps in the buying process, and your lawyer can assist in obtaining it on your behalf.
📩 Need Help Getting Your NIE? Let’s Connect You to a Lawyer
Financing Your Property – Mortgage Options for International Buyers
For non-residents, Spanish banks typically finance up to 70% of the property value, requiring documentation such as:
- Proof of income and employment status
- Tax returns from your country of residence
- Bank statements and credit history
The Property Purchase Process in Spain
Step 1: Reserve the PropertyOnce you’ve found your ideal home, a reservation fee (typically 1%) is paid to take the property off the market while due diligence is conducted. This fee is held in a lawyer’s escrow account.
Step 2: Due Diligence & Legal Verification
Your lawyer will conduct due diligence, ensuring that:
✔️ The property has no outstanding debts or legal issues
✔️ It has the necessary planning permissions and legal status
✔️ Utilities and property taxes are up to date
This process usually takes 14 days, during which your agent and lawyer will guide you every step of the way.
Step 3: Private Purchase Contract (PPC) – Securing the Deal
After due diligence is complete, a Private Purchase Contract (PPC) is signed. At this stage, the buyer pays 10% of the total property price (minus the reservation fee). For New Developments the sum can be around 30-40% of the purchase price and usually divided in different payments.
- If the buyer withdraws, they lose the deposit.
- If the seller withdraws, they must return double the deposit to the buyer.
The final payment is made, and the Escritura (title deed) is signed before a notary. Once signed, ownership is transferred, and your lawyer will:
✔️ Register the property in the Land Registry
✔️ Update utility contracts to your name
✔️ Finalize tax and legal documentation
Taxes & Fees on Property Purchases inSpain
New vs. Resale Property Tax Breakdown✔️ New Build Properties: Subject to 10% VAT (IVA) + 1.2% Stamp Duty (AJD)
✔️ Resale Properties: Subject to a 7% Property Transfer Tax (ITP) in Andalusia
Ongoing Taxes for Property Owners in Spain
✔️ Property Tax (IBI): 0.4%–1.1% of the cadastral value (similar to council tax)
✔️ Wealth Tax: No longer applies in Andalusia, but reporting may still be required
✔️ Rental Income Tax: 24% for non-EU residents, 19% for EU residents
Buying a New Development – A Smart Investment in Prime Real Estate
Why Choose a New Development?
New developments in Costa del Sol offer modern designs, energy efficiency, and high investment potential.They come with:
✔️ State-of-the-art architecture and smart home features
✔️ High-end amenities such as pools, gyms, and concierge services
✔️ Strong capital appreciation, with values typically increasing by 10-15% per year from the project launch until completion.
Timing is Everything – The Advantage of Moving Early
To get the best prices in a new development, timing is key. Developers often sell the first units at lower prices—typically up to 50% of the project at a discount—to secure financing and build momentum. This means that early buyers gain the most value, benefiting from below-market pricing and significant appreciation as the project advances.With expert guidance, you can leverage this price strategy and move early to secure the best units at the most competitive prices before values increase.
The Buying Process for New Developments
1. Reservation Agreement– Secure the property with a reservation fee (typically €6,000 – €20,000, depending on the project).2. Private Purchase Contract (PPC) – Signed after due diligence, requiring a 10%-30% deposit.
3. Stage Payments – Payments are structured over the construction period, often in installments of 20%-30%, with final payment on completion.
4. Title Deed & Final Payment – Upon completion, the final balance is paid, and the title deed (Escritura) is signed before a notary.
Your Down Payment is Secure
Spain’s property laws protect buyers when purchasing new developments. Every down payment is secured by a bank guarantee or insurance policy, ensuring that your investment is protected in case of unforeseen issues, such as the developer going bankrupt.Taxes & Fees on New Developments
✔️VAT (IVA) – 10% on residential properties (applies to new builds).✔️ Stamp Duty (AJD) – 1.2% of the purchase price in Andalusia.
✔️ Notary & Registry Fees – Typically €500 – €3,000 depending on property value.
