Expert Guidance for Safely Buying Your Dream Villa in Marbella

To make your Marbella villa buying experience safe and hassle-free, it's essential to follow these expert recommendations. I highly recommend engaging a local, independent real estate expert who can meticulously navigate the administration and legal intricacies, ensuring that your investment is secure and free from any encumbrances.

Property registration and utility contracts

The Marbella Land Registry will officially record your property's title once you sign the contract at the public notary's office. Subsequently, you need to handle the payment of applicable taxes and submit the deeds to the Land Registry for proper documentation. This registration process typically takes between one to three months to complete. I can recommend you the best specialists and lawyers to do it.
Additionally, will be necessary to arrange the essential utility services such as water, electricity, gas, and telephone connections if they're not already in place.
You will need also to notify the City Council, Provincial Tax Collection Office, and the relevant community of owners about your purchase. Moreover, I strongly recommend securing a home insurance policy to protect your investment.

Deed signing & transfer of ownership

The signing of the property deed will occur at a public notary's office. During this process, the seller transfers ownership to you, the buyer, and you settle any outstanding payments related to the agreed selling price.
The notary will validate the transaction's legality, cross-referencing information with the Land Registry to confirm there are no unexpected charges or encumbrances on the property. Once the minutes are signed, an electronic copy of the Ownership Title is sent to the Land Registry for immediate registration.
Rest assured, I will be by your side, ensuring that all documentation and transaction details are in order. I can act as your translator and interpreter throughout the entire process. In cases where you can't attend the signing in person, a lawyer can act on your behalf with a power of attorney, which can be executed at a Spanish notary, a Spanish embassy or consulate abroad, or in your home country, with proper translation and legalization as required.

Deposit and reservation

Once you've chosen your dream property in Marbella, this deposit secures the purchase, removes the property from the market, and sets the selling price. Typically, reservation deposits range from €3,000 to €10,000 and can be paid via credit card or bank transfer.
It's important to note that this deposit is non-refundable unless otherwise agreed upon in advance.

Property evaluation & contract negotiation

After signing the reservation document and making the deposit, the seller must provide you with all property-related documentation. This is crucial for assessing the property's legal, urban, and fiscal status, uncovering any potential issues, liens, or debts that could affect you in the future.
Once we've verified everything is in order, a draft of the private purchase contract is required, keeping your best interests at heart. I will ensuring transparency and clarity.

Purchase costs & taxes

Property acquisition costs in Marbella typically range from 10% to 13% of the purchase price. These expenses include:
a. Lawyers' fees, typically 1% to 1.5% of the purchase price. b. Notary fees, typically between €300 and €1,500. c. Land Registry fees, generally lower than notary fees. d. Transfer Tax (Property Conveyance Tax) and Stamp Duty (for Documentation of Legal Acts).

Transfer tax

Applicable to resale properties and calculated based on the property's price. The tax rate starts at 8% for prices up to €400,000 and increases to 9% for prices between €400,001 and €700,000, and 10% for prices exceeding €700,001. However, since April 2021, there's been a reduced rate of 7% for second-hand homes.

Stamp duty

This tax applies only to new housing purchases and is set at 1.5% of the price. Since April 2021, the rate has been reduced to 1.2%.

VAT

New housing purchases are subject to 10% Value Added Tax (VAT) based on the property's price.
Additional expenses include those related to administrative processes, such as procuring utilities, obtaining your NIE, and power of attorney.

Signing the private purchase contract

The purchase contract outlines agreements and sale conditions, adhering to Spanish legislation. It is typically signed within two weeks to one month after the reservation and generally involves a 10% payment of the selling price, deducting the initial deposit. For off-plan or under-construction properties, this payment could range from 25% to 40% of the selling price.
Any conditions or commitments agreed upon with the seller or estate agent must be clearly stated in the contract. Once signed, both parties are obligated to honor these stipulations. In off-plan or under-construction purchases, multiple payments will be made between the contract signing and the deed.

NIE number

The NIE (Número de Identificación de Extranjeros) or Foreigners' Identification Number is a mandatory personal identifier for foreign taxpayers in Spain. It's crucial for property purchases and opening a bank account. Rest assured, ZagHomesEstate can facilitate obtaining your NIE, providing a convenient and efficient service so you can focus on enjoying your new Marbella property.