If you regularly spend your holidays in Marbella and love the place so much that you are thinking of buying a property to live in, use a as a holiday home or rent out, make sure you take major items into account like the location, building quality and market trends, as well as checking out the local amenities, accessibility and security as they will all affect your future sale price or rental income.

The buying process in Andalucia is relatively simple, but because you are buying in a foreign country it is recommended that you appoint a reputable agent who has proven experience of handling successful developments in Andalucia well as your own independent solicitor. The best way to find the right people to act on your behalf is by personal recommendation.

If you are planning on buying a property in Andalucia apply for an NIE number (Numero de Identificacion de Extranjeros) as soon as you can as this number is required when carrying out any financial transactions here. These numbers are issued at the Police Station in the town where you are purchasing the property and you need to apply in person. You should go to your nearest Police Station between the hours of 09.00 and 14:00 to complete the NIE application form, but go early and be prepared to queue. You will need to take your passport (and a photocopy of the main page), and be asked to complete the application form in duplicate using black ink.

Whilst it is not a necessity to have a Spanish Bank Account to purchase a property in Andalucia, it is generally a good idea. Most of the Spanish banks have staff who speak English and you just need a passport or NIE number (plus some Euros!) to open an account.
When you find the property you wish to buy you will have to pay a deposit or reservation fee of around 10% and sign a private sale contract. Unlike the UK, the property will be immediately taken off the market and the price fixed. If the vendor pulls out of the sale, they are legally required to pay you double your payment in compensation. If you pull out of the sale or fail to complete on the date arranged then you will lose your deposit.

Check that this payment is refundable subject to legal checks on ownership, planning permission, boundaries and the legal description of the property. With resale properties charges and debts incurred by the previous owner can be registered against the property and you will inherit them on completion. It is your lawyer’s job to ensure you buy the property free of any debts and check that they carry out these procedures before you sign anything because in Spain not all solicitors automatically do this.

Once the legal checks have been made to your satisfaction the sale is performed before a Public Notary who is a person appointed by the Spanish government to witness the signing of all legal public documents. They represents both the buyer and the seller and their fees are around 1% of the purchase price of the property and must be paid at the time of the signing of the deeds.

The original signed document is retained by the Notary who will apply for a formal change in the land registry. The purchaser will receive an initial legal copy of the title deed which is signed and stamped by the Notary. The official title deed can take a while to be processed and until then the copy is your official proof of ownership and must be kept in a secure location

The final payment on the property is made at the time of sale and this transaction is recorded in the Title Deed (Escritura de Compraventa) which is signed before the Public Notary. If you are unable to attend in person at the signing you should give power of attorney to your lawyer.
Once completion has taken place, certain fees and taxes must be paid, and are normally in the region of 10-12% of the purchase price of the property. These will include transfer tax (on a resale property), IVA and Stamp Duty (on a new build), lawyer’s fees, notary’s fees and land registry.

You should also make provision for fluctuating exchange rates, because as long as the UK does not participate in the EURO currency, the rate of exchange between pound sterling and the euro will continue to give headaches to anyone considering buying or selling property in Andalucia. If you do not want to check exchange rates on a daily basis you should consider paying for the services of a professional exchange company that can get the best deal. These companies tend to offer the following services:
o Spot transfers which are ideal if the exchange rate is in your favour and you can get the money together quickly
o Forward transactions are when favourable rates are guaranteed with only a small deposit necessary
o Limit order when you tell them what exchange rate you are looking for and they will tell you when it comes up so that you can make a quick purchase
o Regular currency transfers happen on a regular basis at commercial rates to cover loans or mortgages.
Please bear in mind that the above information is a brief outline of the rules currently in operation and is intended only as a guide and not as a substitute for professional advice.

And once this process is complete you will finally have your dream home abroad and a place of your own to spend your holidays in Marbella.