What You Need to Know When Buying a Property on the Costa del Sol
Deciding to buy a property on the Costa del Sol is an easy choice. As one of the world’s premier holiday and residential-tourism destinations, this Mediterranean hotspot is at or near the top of millions of people’s dream home wish-list.
Once that initial decision has been made, however, homebuyers will need to consider some more difficult choices, and it is absolutely essential to follow several key steps before arranging removalists and booking flights.
At Promas Estates, we have many years of experience helping clients find and buy their ideal home, and we can guide you though what might appear to be a complicated process but is actually fairly straightforward with the right advice and support.
To help you get started, here is a step-by-step guide to buying a property on the Costa del Sol.
As with any major decision in your life, it is important to undertake extensive research when buying a new property. When it comes to the Costa del Sol, many will already be familiar with the area – either from previous holiday trips or personal accounts by family members and friends.
Nevertheless, we highly recommend that you check out a variety of lifestyle websites and blogs to make sure the destination fulfils all your own requirements and preferences.
We are confident it will be perfect for most homebuyers, but it is always useful to be as familiar as possible with a new area, especially in a foreign country. That way, not only will you avoid any unexpected surprises, but you will also be able to settle into your new environs with greater confidence, comfort and convenience.
Choice of Agent
Select a reputable and well-established agent with ample local knowledge and industry experience, such as Promas Estates.
Discuss your preferences and requirements at a preliminary meeting – in person if you can travel to Spain or by video chat if not – to ensure you have a rapport with your agent. The personal touch is always important, as you are not only making a major financial investment but also, in many cases, a significant lifestyle change.
Check if the real estate company has a sufficiently diverse and extensive range of property options on its website, as well as comprehensive information about the Costa del Sol and its many different areas.
Finally, confirm that the agent actually has an office headquarters. That will demonstrate that the company is serious and properly constituted, and not an inexperienced and dubious intermediary working from a makeshift home office.
Location and Market
It’s an old adage oft-repeated, but “location, location, location” applies today as much as it always has.
The Costa del Sol comprises a vast and diverse stretch of the Mediterranean coastline, more than 150 kilometres long and extending into the mountain hinterland. Its main areas include Marbella, one of Andalucía’s largest cities, other major urban hubs such as Mijas, and rustic village settings including Benahavís.
Even within the same municipality, there are distinctive districts, some especially ideal for families, others for retired couples, and an increasing number for young professionals who would like to “remote-work” in the Spanish sun.
Your decision on location will also depend on whether the purchase is for a buy-to-let investment, regular holiday home or permanent new residence.
We also recommend you study the market for new developments in your chosen area, as they might still be on the drawing board and not currently actively marketed. At Promas Estates, we always stay abreast of the latest news and can offer up-to-date information on pending development plans.
Financing and Taxes
Before making the decision to buy a new home you will no doubt already have considered the financial implications. If you have just sold your current home you will be well placed to make a prompt decision and immediately start the buying process with your Costa del Sol agent.
If you are waiting for your property to be sold, and are relying on those funds for the new purchase, you will need to be more patient and also make this clear to the agent so they can ensure your preferred Costa del Sol property is held for you – probably following the payment of a reservation fee.
If you need a mortgage, you will need to decide if it’s best to speak to your home country bank or look at options in Spain. If the latter, Promas Estates will be able to recommend a financial institution and advise you about the intricate Spanish mortgage laws.
Bear in mind also that the agreed purchase price will not include taxes and other administration costs, which are likely to be an additional 10 per cent or slightly more.
Finally, clarify if you are required to pay an agent’s commission, or share payment with the seller – ideally in writing. At Promas Estates we ensure absolute transparency when it comes to our commissions.
We will also be able to make sure you are fully aware of the various payment stages of buying a property in Spain, from reservation fee and/or deposit to the final contract settlement.
If you are British or from another non-European Union country, you will need to familiarise yourself with residency rights, driver’s licence requirements, car registration, etc.
There are many aspects to consider and resolve, including for European Union and European Economic Area citizens, but a chat with Promas Estates’ experts and specialist advisers will help you understand what is required. They can also take care of all the paperwork to make it even more hassle-free.
Making the Move
That just leaves the big move. Here you will find an invaluable checklist that provides you with an initial guide to moving to Marbella and other parts of the Costa del Sol – ensuring a smooth transition at all levels and throughout the process.
If you have any further questions we are just a phone call or email away. And, if you able to travel to Spain for a viewing tour, our professional team will be happy to show you why your decision to buy a property on the Costa del Sol is guaranteed to be one of the best you will ever make.