Buying property on the Costa del Sol in 2026 takes roughly 2–4 months from offer accepted to keys in hand. Budget 10–13% on top of the purchase price for taxes and fees: 7% transfer tax on resale properties, 10% VAT on new builds, plus notary, legal, and registration costs. You’ll need a NIE — Número de Identificación de Extranjero before you can sign anything.

Why the Costa del Sol Specifically

The Costa del Sol — stretching roughly 150km from Nerja in the east to Manilva in the west — is the most liquid property market in southern Spain. Marbella, Estepona, Fuengirola, Torremolinos, Benalmádena, and Málaga city each have distinct micro-markets with different price points and buyer profiles.

In 2025, average prices ranged from around EUR 2,500–3,500/m² in Torremolinos and Fuengirola, up to EUR 5,000–8,000/m² in central Marbella, and EUR 10,000–20,000/m² in the Golden Mile and Sierra Blanca. New build in Estepona or the Nueva Andalucía area typically starts around EUR 350,000 for a two-bed apartment.

The market here is genuinely international. You’ll be competing with British, Scandinavian, Dutch, and increasingly American buyers. Properties in the EUR 300,000–600,000 range move fast when priced right. Above EUR 1 million, you have more time but fewer comparable sales to anchor your negotiation.

Step 1: Get Your NIE — Before Everything Else

The NIE — Número de Identificación de Extranjero — is Spain’s tax identification number for foreigners. Without it, you cannot sign a purchase deed (escritura), open a Spanish bank account, pay taxes, or complete any legal transaction. This is not optional and not something you do “later.”

The full process is covered in our NIE Spain Complete Guide, but here’s the short version:

• Apply in person at a Spanish consulate in your home country, or at the Oficina de Extranjería or Comisaría Nacional de Policía in Spain
• On the Costa del Sol, appointments at the Málaga foreigners’ office can be booked via the Sede Electrónica — expect waits of 2–6 weeks for an appointment slot
• You’ll need: completed EX-15 form, valid passport, photocopy of passport, and EUR 10.20 fee (tasa) paid via Form 790
• Processing time once you’ve submitted: typically 1–3 weeks
• Your lawyer can often obtain your NIE via poder notarial (power of attorney) without you needing to be present — useful if you’re buying remotely

Start the NIE process the moment you’re serious about buying. It’s the most common delay in Costa del Sol transactions, and it’s entirely avoidable.

Step 2: Open a Spanish Bank Account

You’ll need a Spanish bank account to pay the purchase taxes, utility deposits, and comunidad fees. Most buyers use CaixaBank, Santander, or BBVA. Non-residents can open accounts — you’ll typically need your passport, NIE (or proof of NIE application), and proof of address from your home country.

If you’re buying a property worth EUR 500,000 or more and want to bring funds from outside Spain, be prepared to document the source of funds (origen de fondos). Anti-money-laundering checks are thorough. Bank transfers for property purchases should come from your own account, not third parties.

Step 3: Find the Right Lawyer

Your abogado (lawyer) is the most important person in this transaction — more important than your estate agent. The notary is not your lawyer. The notary is a neutral public official who authenticates the deed; they will not protect your interests.

Budget EUR 1,500–3,000 for legal fees (some charge a percentage of purchase price, typically 0.5–1%). For that, a good lawyer should:

• Carry out due diligence: check the property is registered correctly at the Registro de la Propiedad (Land Registry), that there are no outstanding debts, mortgages, or cargas (encumbrances)
• Verify planning status — this matters hugely in Andalucía where illegal builds and incomplete licenses are more common than you’d expect
• Check IBI (council tax) is paid up-to-date and no fines are outstanding with the Ayuntamiento
• Review the contrato de arras (reservation/deposit contract) before you sign it
• Calculate your exact tax bill so there are no surprises at the notary
• Accompany you (or represent you via power of attorney) at the notaría

Do not use the estate agent’s recommended lawyer unless you’ve independently verified they’re genuinely independent. Referral relationships exist. Find your own through the Ilustre Colegio de Abogados de Málaga, or ask for recommendations in expat communities you trust.

Step 4: The Reservation and Deposit Process

Once you’ve agreed a price, the standard process has two stages before completion:

Contrato de Arras (Private Purchase Contract)

The contrato de arras is a private contract between buyer and seller. You’ll pay a deposit — typically 10% of the purchase price. There are different types, but the most common (arras penitenciales under Article 1454 of the Civil Code) works like this:

• If you pull out, you lose the deposit
• If the seller pulls out, they must return double the deposit
• This gives both sides skin in the game

The arras typically gives you 30–60 days to complete. Your lawyer must review this document before you sign it — the deposit is real money at risk.

Completion (Escritura Pública)

Completion happens at the notary’s office. Both buyer and seller (or their representatives with poder notarial) must attend. The notary reads the deed aloud (this can take 30–45 minutes), both parties sign, and keys are exchanged.

Payment is typically by cheque bancario (bank draft) — cash is not accepted above EUR 1,000 by law, and wire transfers to an unknown account mid-transaction is a fraud vector to watch out for. Always verify bank details through the phone number you already have, not a new one provided in an email.

The Full Costs Breakdown

This is where people consistently underestimate. “I have EUR 400,000” does not mean you can buy a EUR 400,000 property. You need the purchase price plus:

Cost Item	Resale Property	New Build
ITP — Transfer Tax	7% of purchase price	—
IVA — VAT	—	10% of purchase price
AJD — Stamp Duty (new builds only)	—	1.2% (Andalucía)
Notary fees	0.2–0.5% (min ~EUR 800)	0.2–0.5% (min ~EUR 800)
Land Registry inscription	0.1–0.3%	0.1–0.3%
Legal fees (abogado)	0.5–1% (min EUR 1,500)	0.5–1% (min EUR 1,500)
Gestor admin fees	EUR 300–600	EUR 300–600
Bank fee (if mortgage)	0.25–1% of loan	0.25–1% of loan
Total extra costs	~9–10%	~12–13%

On a EUR 400,000 resale apartment, that means roughly EUR 36,000–40,000 in additional costs. On a EUR 400,000 new build, closer to EUR 48,000–52,000. These numbers are non-negotiable — the taxes go straight to Hacienda and Andalucía’s regional government.

Non-Resident vs. Resident Buyers

See our full breakdown in the Non-Resident vs. Resident Buying Guide, but here are the key differences in practice:

Non-Residents

• Mortgage LTV: Spanish banks typically lend up to 60–70% of the purchase price or valuation (whichever is lower) for non-residents, versus 80% for residents
• Income verification: You’ll need to demonstrate foreign income to Spanish underwriting standards — payslips, tax returns (translated and apostilled), contracts
• Ongoing tax: As a non-resident property owner, you’ll pay Impuesto sobre la Renta de No Residentes (IRNR) — even if you don’t rent the property out, Spain imputes an income (typically 1.1–2% of the valor catastral)
• Rental income: If you rent it out, 19% tax on rental income (EU/EEA residents can deduct expenses; non-EU residents pay 24% on gross income)
• Capital gains: 19% on any gain when you sell

Spanish Tax Residents

• Access to higher LTV mortgages (up to 80%)
• First home purchase in Andalucía: reduced ITP rate of 3.5% (under certain conditions — check current rules with your lawyer)
• Annual IRPF filing includes worldwide income
• Primary residence capital gains can be exempt if you reinvest in another primary residence within 2 years

Mortgages in Spain

Spanish mortgage rates in early 2026 are tracking around 2.8–3.8% for fixed-rate products (Euribor-linked variables fluctuate, but most buyers now prefer fixed). Key things to know:

• Valuation matters: The bank lends against the lower of purchase price or bank valuation. Occasionally these differ — budget accordingly
• Bank costs: Since 2019 law reform, the bank pays most mortgage setup costs (registration, notary for the mortgage deed, AJD). You typically pay only the valuation fee (EUR 300–600)
• Term: Up to 30 years for residents; typically 20–25 years for non-residents, and must finish before age 75
• Process takes time: Allow 6–8 weeks from mortgage application to approval and completion. Factor this into your arras timeline

Spanish banks with strong non-resident mortgage products include Sabadell, CaixaBank, and Bankinter. Specialist brokers like Simon Conn or Mortgage Direct can shop multiple lenders and often get better terms than going direct.

The Golden Visa — What Changed in 2024

Spain’s Golden Visa program, which offered residency to buyers of property worth EUR 500,000 or more, was closed to new applicants in April 2024. Applications submitted before that date are still being processed, but new applicants cannot enter through the property route.

If you’re buying for residency purposes, the main routes now are:

• Digital Nomad Visa: For remote workers earning from non-Spanish sources, minimum income EUR 2,442/month in 2026
• Non-lucrative visa: For financially independent retirees or those who don’t work — requires demonstrated passive income of around EUR 28,000+/year
• Beckham Law / Special Expatriate Regime: For those relocating to Spain for work — flat 24% tax rate on Spanish income up to EUR 600,000

Don’t let any agent claim the Golden Visa is still available via property purchase in 2026. It is not.

Common Mistakes (and How to Avoid Them)

1. Skipping proper legal due diligence

Costa del Sol has a significant legacy of illegal construction — properties built without proper planning permission, or where the license was obtained illegally. The Junta de Andalucía has a programme for regularising some of these, but many remain in legal limbo. Your lawyer must check the Certificado de Primera Ocupación (first occupation certificate) and verify the property’s status in the planning register.

2. Underestimating ongoing costs

Buying is just the start. Annual costs include: IBI (council tax, EUR 300–2,000+ depending on property size and location), comunidad fees (community charges for shared areas and pools, EUR 50–500+/month), home insurance, and for non-residents, the annual IRNR tax filing. Budget for these from day one.

3. Buying off-plan without proper protection

If you’re buying a new build from a developer before construction is complete, ensure your deposit is protected by a bank guarantee (aval bancario). This is legally required, but enforcement has historically been patchy. Verify the aval independently — do not just take the developer’s word for it.

4. Confusing “purchase price” with “total investment”

Already covered in the costs section, but it bears repeating because it catches people repeatedly. When budgeting, always work backwards from your total available funds, not from the purchase price.

5. Not visiting at different times of year

The Costa del Sol in July feels completely different from October. If you’re planning to live here full-time, visit in winter. Check noise levels, parking, and access to everyday services — not just the beach views.

The Process Timeline at a Glance

Stage	Typical Duration	What Happens
NIE application	2–6 weeks	Apply before searching; can run in parallel
Property search	Varies widely	Online + in-person viewings
Offer and negotiation	1–2 weeks	Agree price; instruct lawyer
Due diligence + arras	1–3 weeks	Legal checks; sign private contract; pay 10% deposit
Mortgage (if applicable)	4–8 weeks	Application, valuation, approval
Completion at notary	1 day (appointment)	Sign escritura; pay balance; receive keys
Post-completion	4–8 weeks	Tax payment; Land Registry inscription; utility transfers

📺 Watch the video guide:

Property Due Diligence Checklist for Spain

Before you sign the binding contract, verify these items. Your lawyer should handle most of this—but you should know what's being checked.

---

Legal Status of the Property

Nota Simple (Registry Extract)

• Property is registered at the Land Registry
• Seller is the registered owner (or has authority to sell)
• Description matches what you're buying (size, boundaries)
• No unexpected charges or liens (cargas)
• No ongoing legal disputes (litigios)

Red flag: Property not registered, or registered under different owner.

Planning Permission

• First Occupation License (licencia de primera ocupación) exists
• Building matches approved plans
• No urban planning infractions (infracciones urbanísticas)
• Property is in urban, not protected/rustic, zone (unless intended)

Red flag: Unpermitted construction, pending demolition orders.

Catastro (Cadastral Registry)

• Property appears in the catastro
• Size matches registry and reality
• Boundaries are consistent
• Cadastral value is available (needed for tax calculations)

Red flag: Discrepancies between catastro, registry, and physical property.

---

Financial Status

Community Fees

• Certificate of no debt from the community administrator
• Current on all payments
• If debts exist, negotiated off purchase price

Red flag: Large outstanding debts, history of non-payment.

IBI (Property Tax)

• Current year paid or prorated at completion
• No prior year arrears
• Receipt or certificate provided

Red flag: Years of unpaid IBI (can become liens).

Utility Bills

• Electricity account in good standing
• Water account in good standing
• No disconnection notices
• Contract details available for transfer

Red flag: Disconnected utilities, large arrears.

Mortgage/Charges

• Any existing mortgage identified
• Confirmation mortgage will be canceled at completion
• No other financial charges (embargos, liens)

Red flag: Mortgage balance exceeds sale price.

---

Building and Community

Community Documentation

• Copy of community statutes (estatutos)
• Recent meeting minutes (actas) – last 2-3 years
• Current annual budget
• Reserve fund status
• Any planned special assessments (derramas)

Red flag: Depleted reserve fund, major works planned, high delinquency.

Rental Restrictions

• Can you use the property as you intend?
• Short-term rental restrictions checked
• Any rental licenses required in this municipality?

Red flag: Community ban on short-term rentals if you planned to rent.

Insurance

• Building insurance policy exists
• Coverage is adequate
• Premiums are current

Red flag: Lapsed insurance, inadequate coverage.

---

Physical Condition

Structural Survey (If Appropriate)

• Consider independent survey for older properties
• Check for damp, cracks, subsidence
• Electrical system adequate
• Plumbing in good condition
• Roof condition (if relevant)

Red flag: Obvious structural issues, hidden damp.

Certificates

• Energy Performance Certificate (required for all sales)
• ITE certificate if building is old enough to require it
• Pool certificate if applicable

Red flag: Missing mandatory certificates.

What's Included

• Fixtures and fittings list agreed in writing
• Furniture inventory if included
• White goods, air conditioning units, etc.

Red flag: Verbal promises not in contract.

---

Seller Verification

Identity

• Seller's ID verified
• If company selling, authority to sell confirmed
• If inherited property, succession documents complete
• If multiple owners, all agree to sell

Red flag: Unclear ownership chain, disputed inheritance.

Authority

• If selling via power of attorney, POA is valid
• POA specifically authorizes this sale
• POA is recent and not revoked

Red flag: Old POA, limited authority.

---

Contract Terms

Reservation Contract

• Deposit amount reasonable (€3,000-€10,000 typical)
• Refund conditions clear
• Timeline to full contract specified
• Property correctly described

Private Contract (Arras)

• Deposit amount clear (typically 10%)
• Type of arras specified (penitenciales vs confirmatorias)
• Completion date realistic
• All conditions spelled out
• Included items listed
• Penalty clauses understood

Escritura (Deed)

• Matches private contract terms
• All parties present or properly represented
• Funds transfer arrangements clear
• Keys/possession on signing

---

Post-Completion

Registration

• Lawyer will register purchase at Land Registry
• Timeline for registration confirmed
• Copy of registered deed to be provided

Tax Filings

• ITP/IVA filing handled (30-day deadline)
• Modelo 600 submitted
• Payment receipt obtained

Utility Transfers

• Electricity contract transferred
• Water contract transferred
• Gas (if applicable)
• Internet arrangements

Community Notification

• Community administrator notified of ownership change
• Bank details provided for fee collection
• Contact details registered

---

Timeline Reference

Stage	What to Check	Who Does It
Before offer	Basic property status	You + agent
After offer accepted	Full due diligence	Lawyer
Before signing arras	All critical items cleared	Lawyer
At completion	Final verification	Lawyer at notary
After completion	Registration, transfers	Lawyer/Gestoría

---

When to Walk Away

Serious issues that should stop the purchase:

• Illegal construction with no path to legalization
• Unpayable debts that exceed equity
• Title disputes or unclear ownership
• Seller won't provide standard documentation
• Major structural problems without price adjustment

Walking away at due diligence saves you from problems. That's what it's for.

---

Related:

• Buying Property on the Costa del Sol: Complete Guide
• Choosing a Property Lawyer in Spain

Related Guides

• How to Find a Good Gestor
• NIE Guide
• Healthcare Guide
• What Is a Gestoria?

Frequently Asked Questions

Community Fees in Spain (Comunidad): What You're Paying For

Every apartment and most townhouses in Spain come with monthly community fees. Here's what they cover, what's normal, and what to watch out for.

---

What Community Fees Are

When you buy a property in a building or urbanización, you automatically become a member of the comunidad de propietarios (community of owners). Monthly fees fund shared expenses.

This isn't optional. It's part of ownership.

---

What Fees Cover

Standard Inclusions

Building Maintenance

• Exterior repairs and painting
• Roof maintenance
• Lift maintenance and inspection
• Common area lighting
• Entry systems and intercoms

Grounds (If Applicable)

• Garden maintenance
• Pool cleaning and chemicals
• Irrigation systems

Insurance

• Building insurance (covers structure, not contents)
• Public liability for common areas

Utilities

• Electricity for common areas
• Water for gardens and pools
• Community water heating (some buildings)

Administration

• Administrator salary or management company fee
• Annual meeting costs
• Legal fees
• Bank charges

Reserve Fund
Spanish law requires communities to maintain a reserve fund of at least 10% of the annual budget for unexpected repairs.

Premium Inclusions (Higher-End Developments)

• 24-hour security/concierge
• Gym and spa facilities
• Tennis/padel courts
• Beachfront access or private beach services
• Multiple pools
• Landscaped gardens with full-time gardeners

---

What's Normal to Pay

Costa del Sol community fees vary enormously:

Property Type	Typical Monthly Fee
Basic apartment (no pool)	€50-€100
Standard urbanización apartment	€100-€200
Townhouse in gated community	€150-€300
Luxury apartment (security, amenities)	€300-€600
Villa in premium urbanización	€400-€1,000+

The biggest drivers of cost:

1. Number of units – Fewer units = higher per-owner cost
2. Amenities – Pools, gardens, security add up
3. Age of building – Older buildings often have higher maintenance
4. Management quality – Well-run communities are more efficient

---

How Fees Are Calculated

Each property has a cuota de participación (participation quota)—a percentage of the whole community. This is fixed in the building's founding documents and based on:

• Property size (square meters)
• Location within building (penthouses often higher)
• Amenities accessed (ground floor might not pay lift costs)

Your monthly fee = Community budget × Your participation quota

If the annual budget is €100,000 and your quota is 2%, you pay €2,000/year (€167/month).

---

The Junta: Community Meetings

The junta de propietarios (owners' meeting) makes decisions:

• Annual budget approval
• Major repairs and improvements
• Rule changes
• Hiring/firing administrators

You can vote in person or by proxy. Voting power typically matches participation quota.

Key meeting documents:

• Convocatoria – Meeting notice and agenda
• Actas – Meeting minutes (record of decisions)

Before buying, ask to see the last 2-3 years of actas. They reveal:

• Financial health
• Upcoming major expenses
• Problem owners
• Management quality

---

What to Check Before Buying

1. Current Fees and Budget

Ask for:

• Current monthly fee for the specific unit
• Annual budget breakdown
• Reserve fund balance

2. Outstanding Debts

Your lawyer should get a certificate confirming the unit has no outstanding community fees. Community debts transfer with the property. If the seller owes €5,000, you inherit that debt unless you negotiate it off the purchase price.

3. Planned Works (Derramas)

A derrama is a special assessment for major works—new roof, lift replacement, facade renovation. These can be substantial: €5,000-€20,000+ per unit for major projects.

Ask: "Are any derramas planned or under discussion?" Check the actas for indications.

4. Reserve Fund Health

A healthy reserve fund (10%+ of annual budget) indicates good management. A depleted fund suggests deferred maintenance—and future derramas.

5. Payment History

Communities with high delinquency rates have problems. Unpaid fees mean either budget cuts or higher fees for paying owners.

6. Management Quality

Who runs the community?

• Professional administrator (most common, €150-€400/month)
• Self-managed by owners (can work, can be chaotic)

Well-managed communities have:

• Regular meetings
• Clear financial reporting
• Maintained reserve fund
• Prompt response to issues

---

Red Flags

Very Low Fees
If fees seem too cheap for the amenities, the community may be:

• Deferring maintenance
• Running down reserves
• Heading for a large derrama

Missing Reserve Fund
Required by law. If it doesn't exist, management is poor.

High Delinquency
If 20%+ of owners aren't paying, expect trouble.

Years Without Major Maintenance
Buildings need maintenance. No spending for 10+ years means deferred problems.

Conflict in Meeting Minutes
Ongoing disputes, legal actions against owners, contested elections—all warning signs.

Administrator Turnover
Frequent administrator changes suggest management problems.

---

Your Rights as an Owner

Access to Information
You can request budgets, accounts, and meeting minutes.

Vote on Major Decisions
Most significant changes require supermajority (3/5 or 80%) or unanimous approval.

Challenge Illegal Decisions
Decisions that violate Spanish law or community statutes can be challenged in court.

Attend Meetings
Even if you can't attend, you can send a proxy with instructions.

---

Short-Term Rental Restrictions

Many communities now prohibit or restrict short-term rentals (Airbnb, holiday lets). This typically requires:

• 3/5 majority vote to implement
• Registration in the property registry to affect new owners

Check the statutes and recent actas before buying if you plan to rent short-term.

---

Non-Payment Consequences

If you don't pay community fees:

1. Reminder letters
2. Late payment interest (set in statutes)
3. Legal action
4. Court judgment
5. Property lien (embargo)

Communities can place a charge on your property for unpaid fees. This must be cleared before you can sell.

---

The Bottom Line

Community fees are part of Spanish property ownership. They're not optional, and they fund essential maintenance and services.

Before buying, investigate:

• What you're paying
• What you're getting
• What's coming (deferred maintenance, planned works)
• How well the community is managed

A well-run community at €200/month beats a poorly-run community at €100/month. You're buying into a shared system—make sure it works.

---

Related:

• Buying Property on the Costa del Sol: Complete Guide
• Property Costs in Spain: Complete Fee Breakdown

Related Guides

• How to Find a Good Gestor
• NIE Guide
• Healthcare Guide
• What Is a Gestoria?

Frequently Asked Questions

Choosing a Property Lawyer in Spain: What to Look For

A good lawyer costs €1,500-€3,000. A bad one—or none at all—can cost you the property. Here's how to find the right one.

---

Do You Actually Need a Lawyer?

Yes.

The notary is neutral—they verify the transaction is legal, not that it's good for you. The estate agent works for the seller (or takes commission from both sides). Your lawyer is the only person in the room whose job is protecting your interests.

Skip the lawyer and you're trusting that:

• The property has no hidden debts
• The building is legal
• The seller actually owns what they're selling
• The contract terms are fair
• Nothing will go wrong

For a purchase of €300,000+, a €2,000 lawyer fee is insurance.

---

What a Property Lawyer Does

Before You Sign Anything

• Reviews the reservation contract
• Explains what you're committing to
• Flags unusual terms

During Due Diligence

• Orders and reviews the nota simple (registry extract)
• Checks for liens, charges, and debts
• Verifies planning permission and legal status
• Confirms community fee payments are current
• Checks IBI (property tax) is paid
• Reviews community statutes and recent meeting minutes

At Completion

• Reviews the escritura (deed) before signing
• Attends the notary appointment (or acts via power of attorney)
• Ensures funds transfer correctly
• Handles post-completion registration

After Completion

• Registers the purchase at the Land Registry
• Changes utilities to your name (or supervises gestoría doing this)
• Handles any issues that surface

---

What to Look For

1. Property Specialization

General lawyers handle divorces, contracts, and disputes. Property lawyers handle property. The knowledge base is different.

Ask: "What percentage of your work is property transactions?" You want 50%+ minimum, ideally 80%+.

2. Costa del Sol Experience

A lawyer in Madrid doesn't know which branches accept which documentation. A lawyer who's done 200 Costa del Sol purchases knows:

• Local quirks in planning departments
• Which notaries are efficient
• Community dynamics in major urbanizaciones
• Common issues in this market

3. Language Capability

If your Spanish isn't fluent, you need a lawyer who can explain things in your language. Many Costa del Sol property lawyers are bilingual (Spanish/English) or have English-speaking staff.

This isn't about convenience—it's about understanding what you're signing.

4. Availability

Property transactions move fast. When you need an answer, you need it within hours, not days. Ask about response times and who handles your file if your main contact is unavailable.

5. Clear Fees

Get the fee structure in writing before engaging:

• Is it a flat fee or percentage?
• What's included?
• What costs extra (translations, travel, extra searches)?
• When is payment due?

No surprises.

---

Red Flags

"You don't really need a lawyer"
Said by someone who benefits from you not having independent advice.

Recommended by the seller or agent
Conflict of interest. Find your own.

Vague about fees
If they can't tell you what it costs, they're either disorganized or planning to surprise you.

No property experience
"I handle all types of legal matters" = they don't specialize.

Pressure to sign quickly
Your lawyer should be slowing things down to check, not speeding things up.

Can't explain in plain language
If they can't explain the issue clearly, they may not fully understand it themselves.

---

How to Find One

Word of Mouth

Ask other expats who've bought recently. Who did they use? Would they use them again?

Professional Directories

• Colegio de Abogados de Málaga (Málaga Bar Association)
• Solicitors specializing in Spanish property (if you want UK-qualified)

Online Reviews

Check Google reviews, but be skeptical. Some firms manage their online presence aggressively.

Initial Consultation

Most lawyers offer a free or low-cost initial consultation. Use it to assess:

• Do they listen?
• Do they explain clearly?
• Do they seem organized?
• Do they understand your situation?

---

Questions to Ask

1. How many property purchases have you handled on the Costa del Sol?
2. What's your fee, and what does it include?
3. Who will handle my file day-to-day?
4. What's your typical response time?
5. Can you handle the transaction in English?
6. Do you have professional indemnity insurance?
7. Will you attend the notary, or should I arrange power of attorney?
8. What issues do you commonly find in Costa del Sol purchases?

---

Typical Fees

Property Value	Typical Fee
Under €200,000	€1,500-€2,000
€200,000-€400,000	€2,000-€3,000
€400,000-€700,000	€3,000-€4,000
€700,000+	€4,000+ or 1%

Some lawyers charge a flat fee regardless of value. Others use a sliding scale or percentage. Both models work—just know which you're agreeing to.

---

Lawyer vs Gestor vs Notary

Lawyer (Abogado)
Represents your interests. Does legal due diligence. Reviews contracts. Advises you.

Gestor (Gestoría)
Administrative specialist. Files tax forms, handles registrations, manages paperwork. Doesn't give legal advice.

Notary (Notario)
Public official. Verifies identity, witnesses the deed, ensures legal requirements are met. Neutral—doesn't work for either party.

You need all three for a smooth transaction. Some lawyers include gestoría services; others work alongside a separate gestor.

---

The Bottom Line

A property lawyer isn't optional—it's essential. The €2,000-€3,000 you spend is a rounding error on a €300,000+ purchase, and it protects you from problems that could cost tens of thousands.

Find someone with property experience, Costa del Sol knowledge, and clear communication. Interview 2-3 before deciding. Trust your instincts—if something feels off, keep looking.

---

Related:

• Buying Property on the Costa del Sol: Complete Guide
• Property Due Diligence Checklist

Related Guides

• Buying Property on the Costa del Sol
• Buying Property: Complete Guide
• Property Costs in Spain
• Spanish Mortgage Guide
• What Is a Gestoria in Spain?
• IBI Property Tax

Frequently Asked Questions

New Build vs Resale Property in Spain: Which Is Right for You?

Different process, different costs, different risks. Here's how to decide between buying new construction and an existing property on the Costa del Sol.

---

The Quick Comparison

Factor	New Build	Resale
Purchase tax	11.5% (IVA + AJD)	7% (ITP)
Condition	Brand new, warranties	Varies widely
Negotiation	Limited	Significant
Timeline	12-24 months (off-plan)	6-12 weeks
Customization	Sometimes possible	Renovate yourself
Location	Where developers build	Where owners sell

Neither is universally better. The right choice depends on your priorities, timeline, and what's actually available.

---

New Builds: What You're Getting

The Upside

Modern Standards
New builds meet current building codes: better insulation, energy efficiency, electrical capacity for modern life. Air conditioning, underfloor heating, and smart home wiring are standard in quality developments.

Warranties
Spanish law requires:

• 1 year: Finishing defects
• 3 years: Habitability issues (plumbing, waterproofing)
• 10 years: Structural defects

Developers must have insurance backing these warranties.

No Renovation Needed
Move-in ready. No outdated kitchens, questionable wiring, or previous owner's "creative" improvements to deal with.

Payment Staging
Off-plan purchases let you pay in stages: 10-30% at reservation, progress payments during construction, balance at completion. Spreads the cash requirement over 12-24 months.

The Downside

Higher Taxes
11.5% (10% IVA + 1.5% AJD) versus 7% ITP on resale. On a €400,000 property, that's €46,000 versus €28,000—a €18,000 difference.

Location Constraints
Developers build where land is available and planning permits allow. That's often not in established, walkable areas. Many new developments are car-dependent urbanizaciones.

Off-Plan Risk
Buying before construction completes means:

• Developer could delay or fail
• Final product might differ from renders
• Market could move against you
• You can't see exactly what you're buying

Limited Negotiation
Developers have price lists. Some flexibility on upgrades, but the headline price rarely moves much.

---

Resale: What You're Getting

The Upside

Lower Purchase Tax
7% ITP in Andalucía. Significant savings on the same purchase price.

Established Locations
Resale properties exist everywhere—including the prime locations where no new land is available. Want to be walking distance to the centro? Resale is often your only option.

What You See Is What You Get
No renders, no promises. Walk through, inspect, decide. The apartment exists. The view exists. The neighbors exist.

Negotiation Room
Private sellers have motivations beyond maximizing price: divorce, inheritance, relocation, cash needs. There's usually room to negotiate 5-10% off, sometimes more.

Faster Timeline
No construction delays. From offer to keys in 6-12 weeks is typical.

The Downside

Unknown History
Previous owners may have done unpermitted work. Debts may be attached. Structural issues may be hidden. Due diligence is essential.

Outdated Everything
Many resale properties on the Costa del Sol date from the 1980s-2000s boom. Expect:

• Single-glazed windows
• Poor insulation
• Inadequate electrical capacity
• Dated bathrooms and kitchens

Budget for renovation on top of purchase price.

Community Issues
Established communities sometimes have:

• Deferred maintenance
• Upcoming special assessments
• Problem owners
• Outdated rules

Read the community meeting minutes before buying.

---

Cost Comparison: Real Numbers

Scenario: €400,000 Budget

Option A: New Build at €400,000

Cost	Amount
Purchase	€400,000
IVA (10%)	€40,000
AJD (1.5%)	€6,000
Notary + Registry	€1,700
Lawyer	€3,500
Total	€451,200

Move-in ready. Modern finishes. Warranties.

Option B: Resale at €350,000 + €50,000 Renovation

Cost	Amount
Purchase	€350,000
ITP (7%)	€24,500
Notary + Registry	€1,400
Lawyer	€3,000
Renovation	€50,000
Renovation IVA (10%)	€5,000
Total	€433,900

Custom finishes to your taste. Potentially better location.

Difference: ~€17,000 saved with resale + renovation route.

But: Renovation takes time, causes stress, and can exceed budget. New build is turnkey.

---

Off-Plan Buying: The Process

If you buy before construction is complete:

1. Reservation (€3,000-€10,000)

Secures your unit. Usually deducted from the deposit.

2. Private Contract + Deposit (10-30%)

Binding agreement. Your deposit should be protected by a bank guarantee or insurance—this is required by Spanish law for off-plan sales.

3. Stage Payments

Developers may require payments as construction progresses. Typically tied to milestones: foundations, structure complete, roof on, etc.

4. Completion

Final payment when the property is finished and licencias granted. The notary won't proceed without:

• License of First Occupation (licencia de primera ocupación)
• Energy certificate
• Ten-year structural insurance (seguro decenal)

Key Protections

Bank Guarantee (Aval Bancario)
Since the 1968 law (updated 2015), developers must guarantee your deposits with a bank or insurance. If the developer fails, you get your money back.

Always verify this guarantee exists and covers your full deposits.

Red Flags

• Developer resists providing bank guarantee documentation
• Payment schedule heavily front-loaded
• Vague completion dates without penalties
• Pressure to sign quickly
• Off-plan "deals" significantly below market price

---

Location Analysis: Where Each Makes Sense

New Builds Dominate

Nueva Andalucía / Los Flamingos / La Quinta
Golf-adjacent developments, space for new projects, modern urbanizaciones.

Estepona (outskirts)
Major development activity. New townhouse and villa projects.

East Málaga (Rincón, Vélez-Málaga)
More land, lower prices, growing new build inventory.

Resale Dominates

Marbella Old Town / Centro
No land for new development. Historic buildings, character properties.

Puerto Banús immediate area
Established. Any "new" is redevelopment of existing.

Fuengirola / Benalmádena town centers
Dense, established, limited new construction.

Nerja / Frigiliana
Protected areas, limited development, resale is the market.

Mixed Markets

Estepona town
New marina developments alongside traditional resale.

Mijas Costa
Both new urbanizaciones and established communities.

---

The Renovation Reality

If you buy resale planning to renovate:

Budget Realistically

Work	Typical Cost
Kitchen remodel	€8,000-€25,000
Bathroom remodel (each)	€4,000-€12,000
New windows/doors	€8,000-€20,000
AC installation	€3,000-€8,000
Full rewiring	€5,000-€15,000
Pool installation	€25,000-€50,000

A "light refresh" (paint, fixtures, appliances) might be €10,000-€20,000.
A serious update (kitchen, bathrooms, windows) runs €40,000-€80,000.
A gut renovation can exceed the purchase price.

Timeline Realistically

• Getting quotes: 2-4 weeks
• Permits (if needed): 4-12 weeks
• Contractor availability: Varies wildly
• Actual work: 2-6 months depending on scope

Don't plan to renovate and move in simultaneously. It rarely works.

Permits

Cosmetic work (paint, fixtures) doesn't need permits.
Structural changes, facade modifications, or anything affecting common elements requires community approval and often a licencia de obra.

---

Decision Framework

Choose New Build If:

• You want turnkey, move-in ready
• Modern energy efficiency matters
• You're flexible on exact location
• You can wait 12-24 months (off-plan)
• You don't want renovation stress
• Developer reputation is solid

Choose Resale If:

• Location is your priority
• You want negotiating leverage
• Lower purchase taxes matter
• You're comfortable managing renovation
• The right property exists now
• You want established community character

Choose Resale + Renovation If:

• You have specific tastes new builds don't satisfy
• You find a property at the right price in the right place
• You have renovation budget and patience
• You can live elsewhere during work

---

The Second-Order Question

Beyond the spreadsheet: what kind of experience do you want?

New builds attract a certain buyer profile. Your neighbors will be recent arrivals, likely similar demographics. Shared amenities are pristine but soulless. The community is forming, not formed.

Established resale communities have character—for better and worse. Long-term owners, established dynamics, known problems and known pleasures. You're joining something that exists.

Neither is right or wrong. But it shapes daily life more than most buyers consider.

---

Related:

• Buying Property on the Costa del Sol: Complete Guide
• Property Costs in Spain: Complete Fee Breakdown

Market conditions as of February 2026.

Related Guides

• How to Find a Good Gestor
• NIE Guide
• Healthcare Guide
• What Is a Gestoria?

Frequently Asked Questions

Buying Property in Spain as Non-Resident vs Resident: What Changes

Foreigners can buy property in Spain regardless of residency status. But the rules, taxes, and process differ. Here's what changes depending on which side of the residency line you're on.

---

Can Non-Residents Buy Property in Spain?

Yes. Spain places no restrictions on foreign property ownership. Americans, Brits, Canadians, Australians—anyone can buy.

You need:

• A valid passport
• An NIE (tax identification number for foreigners)
• Money from a traceable source

That's it. No residency requirement. No visa requirement. No minimum investment (unless you're pursuing Golden Visa).

---

What "Resident" Actually Means

For property purposes, "resident" means Spanish tax resident, not just having a residency card.

You're a Spanish tax resident if:

• You spend 183+ days per year in Spain, OR
• Spain is your center of economic interests, OR
• Your spouse and dependent children live in Spain

If none of these apply, you're a non-resident for tax purposes—even if you have a TIE (residency card).

This matters because tax treatment differs significantly.

---

The Buying Process: What's Different

For Non-Residents

NIE: Required. You can get one specifically for the property purchase without having any residency status. Apply at a Spanish consulate abroad or police station in Spain.

Bank Account: Most non-residents open a Spanish account to handle the transaction. Some use their foreign bank, but this complicates things.

Power of Attorney: Common for non-residents to grant poder (power of attorney) to their lawyer, allowing completion without being physically present.

Proof of Funds: Banks and notaries scrutinize non-resident purchases more carefully. Be ready to document where the money came from.

For Residents

NIE: You already have one (it's on your TIE/green certificate).

Bank Account: You almost certainly already have a Spanish account.

Presence: More likely to attend completion in person, though POA is still an option.

Documentation: Spanish tax returns and bank history make proof of funds easier.

---

Mortgage Differences

Factor	Non-Resident	Resident
Maximum LTV	60-70%	70-80%
Documentation	Foreign tax returns, translated	Spanish modelo 100
Income verification	More scrutiny	Standard process
Currency risk	Banks may discount non-EUR income	N/A if paid in EUR
Typical rates	Slightly higher (+0.1-0.3%)	Standard

The biggest difference: non-residents need a larger deposit. If you're buying a €400,000 property, expect to need €120,000-€160,000 as a non-resident versus €80,000-€120,000 as a resident.

---

Tax Differences: The Big Ones

Purchase Taxes

Same for both: ITP (7% resale) or IVA + AJD (11.5% new build) in Andalucía.

Residency status doesn't affect purchase taxes.

Annual Taxes While You Own

IBI (Property Tax)
Same for both. Based on cadastral value, typically €800-€2,000/year for a mid-range property.

Wealth Tax (Impuesto sobre el Patrimonio)
Both residents and non-residents pay wealth tax if assets exceed thresholds. Non-residents only count Spanish assets. Residents count worldwide assets but get a higher exemption.

Andalucía has a 100% wealth tax reduction for residents (effectively zero). Non-residents still pay.

Imputed Income Tax (Non-Residents Only)

This catches people off guard. If you're a non-resident and your Spanish property is NOT rented out, you still owe tax on "imputed income"—the theoretical rent you could earn.

Calculation: 1.1-2% of cadastral value × 19-24% tax rate

Example: €100,000 cadastral value × 2% × 24% = €480/year

If you DO rent the property, you pay tax on actual rental income instead (minus deductible expenses for EU residents).

Residents don't pay imputed income tax on their primary residence.

When You Sell

Capital Gains Tax

Both pay capital gains tax on profit when selling:

• Residents: 19-26% depending on gain amount (integrated with annual return)
• Non-residents: 19% flat rate

The 3% Retention (Non-Residents Only)

When a non-resident sells, the buyer MUST withhold 3% of the sale price and pay it directly to the tax office on behalf of the seller.

This is an advance payment against your capital gains liability. If you owe less than 3%, you claim a refund. If you owe more, you pay the difference.

The 3% retention catches many non-resident sellers by surprise. On a €400,000 sale, that's €12,000 withheld at completion.

---

Practical Implications

Non-Resident Buying for Holiday Use

You'll:

• Need 30-40% deposit if mortgaging
• Pay imputed income tax annually (~€300-€800 on typical property)
• Pay wealth tax if value exceeds thresholds
• Have 3% withheld when you sell

The ongoing costs are manageable but add up. Factor them into your decision.

Non-Resident Buying to Rent

You'll:

• Pay tax on rental income (19% for EU residents, 24% for non-EU)
• EU residents can deduct expenses; non-EU cannot
• Still deal with the 3% retention on sale

Rental income reporting is quarterly for non-residents. Most hire a gestor to handle this.

Resident Buying Primary Home

You'll:

• Get better mortgage terms
• Pay no imputed income tax
• Potentially pay zero wealth tax (Andalucía exemption)
• Face capital gains tax if you sell without reinvesting in another primary home

Resident Buying Second Home

Similar to non-residents on the tax side, but:

• Better mortgage terms
• Integrated into your annual tax return
• No 3% retention when selling

---

Golden Visa Considerations

If you're a non-EU citizen investing €500,000+ in property, you may qualify for Spain's Golden Visa—residency through investment.

Important: Owning property doesn't automatically make you a tax resident.

You can have a Golden Visa residency card and still be a non-resident for tax purposes if:

• You spend fewer than 183 days in Spain
• Your economic center remains elsewhere
• Your family doesn't live in Spain

Many Golden Visa holders remain non-residents by design, maintaining tax residence in their home country while having the right to live in Spain.

---

Should You Establish Residency Before Buying?

Buy as non-resident if:

• You're not sure you'll spend 183+ days in Spain
• Your income/assets are better taxed elsewhere
• You want to maintain flexibility
• The property is purely an investment

Establish residency first if:

• You're definitely moving full-time
• You'll need a larger mortgage (better LTV as resident)
• You want to avoid imputed income tax on your home
• Spain is genuinely your new base

Don't fake residency to get better mortgage terms. Tax authorities do check, and the consequences of claiming false residency are serious.

---

The Transition: Non-Resident to Resident

If you buy as a non-resident and later become a resident:

• Property ownership doesn't change
• Tax treatment switches to resident rules
• Mortgage can potentially be renegotiated
• Past non-resident tax obligations don't disappear

The transition is administrative, not dramatic. Report it, adjust your tax filings, continue owning your property.

---

Summary Table

Aspect	Non-Resident	Resident
Can buy property?	Yes	Yes
NIE required?	Yes	Already have
Mortgage LTV	60-70%	70-80%
ITP/IVA	Same	Same
IBI	Same	Same
Imputed income tax	Yes (if not rented)	No (primary home)
Wealth tax (Andalucía)	Yes	Effectively zero
Capital gains rate	19%	19-26%
3% retention on sale	Yes	No

---

Related:

• Buying Property on the Costa del Sol: Complete Guide
• Tax Residency in Spain: Complete Guide

Tax rules current as of February 2026. Individual situations vary—consult a tax professional.

Related Guides

• Buying Property on the Costa del Sol
• Capital Gains Tax in Spain
• Spanish Residency Guide
• NIE Spain: Complete Guide
• Tax Residency in Spain

Frequently Asked Questions

Mortgages for Expats in Spain: What Banks Actually Offer (2026)

Spanish banks will lend to foreigners. The terms depend on your residency, income source, and which bank you ask. Here's how it actually works.

---

The Basic Picture

Spanish banks are open to foreign borrowers, but they're more conservative than UK or US lenders. Expect:

• Lower LTVs: up to 70% for non-residents and 80% for residents buying a main home
• Shorter terms: often less than the 30 years residents can get (CaixaBank’s non-resident HolaBank allows 20)
• Age limits: Loan must end by age 75 to 80, depending on the bank
• More documentation: Especially for self-employed or foreign income

That said, rates are competitive, and with the right preparation, getting approved is straightforward.

---

Resident vs Non-Resident: Different Rules

If You're a Spanish Tax Resident

• LTV: Up to 80% (some banks offer more with additional security)
• Income proof: Spanish payslips, modelo 100, or autonomo documentation
• Easier process: You're in the system, banks understand your paperwork

If You're NOT a Tax Resident

• LTV: up to 70% at the banks that publish a figure (CaixaBank’s HolaBank and UCI)
• Income proof: Foreign payslips, tax returns, bank statements
• Additional requirements: Some banks want proof of ties to Spain
• Higher scrutiny: Every document will be questioned

The gap between resident and non-resident lending has narrowed since 2020, but non-residents still face stricter terms.

---

What Banks Look For

1. Stable Income

Banks want to see that your income can cover the mortgage payment with room to spare. The general rule:

Maximum monthly payment = 30-35% of net monthly income

If you earn €5,000/month net, expect maximum approval for payments around €1,500-€1,750/month.

2. Employment History

• Employed: 1-2 years in current job, indefinite contract preferred
• Self-employed: 2-3 years of accounts, ideally showing stable or growing income
• Remote workers: Documented income, contracts, 6+ months of regular deposits

3. Credit History

Spain doesn't have UK-style credit scores, but banks check:

• CIRBE: Bank of Spain's risk database (shows your Spanish debts)
• ASNEF: Defaulter list
• Your country's records: For recent arrivals

If you have existing Spanish bank accounts with good history, that helps.

4. Property as Security

The bank will order an independent valuation (tasación). They lend based on the lower of:

• Purchase price
• Valuation amount

If you're paying €400,000 but the valuation comes in at €380,000, the bank calculates LTV on €380,000.

---

Which Banks Work With Expats

What each bank publishes on its own website. Where a bank publishes no figure, ask for its current maximum in writing.

Sabadell

Strengths: A dedicated non-resident mortgage, handled by specialist advisers

Non-Resident LTV: Not published; Sabadell says it is usually lower than for residents
Resident LTV: Up to 80% for a main home

Sabadell sells a Hipoteca no residentes — non-resident mortgage, and takes enquiries through an adviser rather than publishing its terms online. As a general rule, the loan must be repaid by age 75.

CaixaBank

Strengths: Large branch network and a dedicated non-resident mortgage, HolaBank

Non-Resident LTV: Up to 70% (HolaBank)
Resident LTV: Up to 80%

HolaBank takes online applications from residents of 15 countries in Western Europe, the USA and Canada; other non-residents can apply at a branch. The maximum term is 20 years, or 15 for some currencies. For residents, the oldest borrower’s age plus the term cannot exceed 80.

BBVA

Strengths: Strong digital platform and an online pre-approval tool (Fast Track)

Non-Resident LTV: No non-resident mortgage published
Resident LTV: Up to 80% for a main home, 70% for a second home

BBVA describes its fixed-rate mortgage as a loan for residents of Spain with income and assets only in euros. The maximum term is 30 years, and the youngest borrower’s age plus the term cannot exceed 75. Worth checking if you live in Spain and earn in euros.

Santander

Strengths: International presence, familiar name for UK/US buyers

LTV: Not published; ask for the maximum in writing

It publishes a mortgage for non-residents buying a second home in Spain. Santander can be bureaucratic, but they have experience with international documentation.

UCI (Unión de Créditos Inmobiliarios)

Strengths: Home-loan specialist, owned by Banco Santander and BNP Paribas

Non-Resident LTV: Up to 70%

UCI isn't a retail bank: it specialises in home finance. You can apply directly, online or at one of its branches. Worth asking if the mainstream banks say no.

Confirmed September 2026 against each bank’s own website.

---

Fixed vs Variable Rates

Variable (Tipo Variable)

A variable mortgage is tied to the 12-month Euribor plus a margin written into your deed.

Example: the August 2026 Euribor of 2.954% plus a 1.00-point margin gives a rate of 3.954%.

The official monthly average was below zero until March 2022 and peaked at 4.160% in October 2023. It was 2.798% in June 2026, 2.855% in July and 2.954% in August, against 2.114% in August 2025. Confirmed September 2026.

Your rate changes on the review date set in your escritura — mortgage deed, usually once a year, using the monthly average for the reference month the deed names. A loan on the official index uses that monthly average, not a single day’s fixing. Each month’s figure becomes official when the Banco de España publishes it in the BOE, early the following month.

Pros: Your payment falls if Euribor falls
Cons: Payment can increase significantly

Fixed (Tipo Fijo)

Fixed rates lock in your payment for 15-25 years.

Headline fixed rates, September 2026: from 2.80% to 3.15% on the banks’ own pages (Openbank, CaixaBank and Unicaja) when you meet their bonus conditions, such as paying your salary into the bank or taking its insurance, and from 3.30% to 4.30% without them. Each bank sets its own eligibility rules, and a non-resident quote can differ. Compare the TAE — annual percentage rate, including costs, not the headline rate. Confirmed September 2026.

Pros: Predictable payments, protection from rate rises
Cons: No benefit if rates fall, higher caps on early-repayment charges

Mixed (Mixto)

Some banks offer 3-5 years fixed, then variable. A middle ground.

---

The Application Process

Step 1: Get Pre-Approval

Before serious house hunting, get pre-approved. This tells you:

• How much you can borrow
• What rate you'll get
• What documentation you need

Pre-approval is usually valid for 3-6 months and doesn't commit you.

Step 2: Find Your Property

With pre-approval in hand, you know your budget. When you find the right property, you can move fast.

Step 3: Formal Application

Submit full documentation:

• ID (passport, NIE)
• Proof of income (payslips, tax returns, contracts)
• Bank statements (6-12 months)
• Existing debt information
• Property details (address, agent contact)

Step 4: Valuation

The bank orders a tasación from an approved valuer. Cost: €300-€500, paid by you.

Timeline: 1-2 weeks

Step 5: Offer Letter

If approved, you receive an offer detailing:

• Loan amount
• Interest rate
• Term
• Monthly payment
• Conditions (insurance requirements, etc.)

You have at least 10 days to review before signing.

Step 6: Notary Signing

The mortgage deed (escritura de hipoteca) is signed at the notary, usually the same day as the property purchase.

Since 2019, the bank pays most notary/registry fees for the mortgage deed.

---

Documentation Checklist

For Everyone

• Passport
• NIE certificate
• Last 3 months bank statements
• Proof of address

Employed (Spanish Contract)

• Last 3 payslips
• Employment contract
• Last modelo 100 (annual tax return)

Employed (Foreign Contract)

• Last 6 payslips
• Employment contract
• Last 2 years tax returns (from your country)
• Letter from employer confirming role and income

Self-Employed / Autonomo

• Last 2-3 years accounts
• Quarterly IVA/IRPF declarations
• Annual modelo 100
• Client contracts (if requested)

Self-Employed (Foreign)

• Last 2-3 years tax returns
• Accountant letter confirming income
• Bank statements showing income deposits
• Business registration documents

---

Common Problems and Solutions

Problem: Income in Different Currency

Banks prefer EUR income. If you earn GBP or USD:

• Some banks won't lend
• Others discount income by 10-20% for currency risk
• Documented stable exchange rate history helps

Problem: Multiple Income Sources

Freelancers, consultants, and portfolio workers have "messy" income. Solution:

• Consolidate bank statements showing all deposits
• Prepare a summary document explaining income sources
• Show consistency over 12-24 months

Problem: Self-Employed Less Than 2 Years

Most banks want 2+ years of accounts. Options:

• UCI or specialist lenders
• Higher deposit (30-40%)
• Wait until you have the track record

Problem: Age Near 65+

If you're 60 and want a 20-year mortgage, the loan ends at 80, past most banks' limits.

Solutions:

• Shorter term (higher payments)
• Larger deposit
• Joint application with younger partner/family member

---

Costs of Getting a Mortgage

Cost	Amount
Valuation	€300-€500
Arrangement fee	0-1% of loan
Property insurance	€200-€500/year (required)
Life insurance	Varies (often required)

The bank pays notary and registry fees for the mortgage deed (since 2019).

---

Early Repayment

If you repay all or part of your mortgage early, Ley 5/2019 (article 23) caps the compensation the bank can charge, and it can never exceed the bank’s actual financial loss:

• Variable rate: 0.15% of the capital repaid during the first five years, or 0.25% during the first three years. The contract picks one of the two, and nothing can be charged after that period.
• Fixed rate: 2% of the capital repaid during the first 10 years (or from the date the fixed rate starts), and 1.5% after that.

These caps cover loans signed from 16 June 2019, when Ley 5/2019 came into force, and older loans renegotiated or moved to another bank since then. Any other older loan follows the terms in its deed. Check your specific contract.

Switching a variable loan to a fixed rate

Converting a variable loan to a fixed rate, or to one fixed for an initial period of at least three years, carries early-repayment compensation capped at 0.05% of the capital repaid early during the loan’s first three years, and nothing after that (Ley 5/2019, article 23.6). If no capital is repaid, nothing may be charged. The cap applies whether you renegotiate with your current bank or move the loan to another, and for a home loan within the law’s scope it applies whatever year the loan was signed.

It covers the compensation only. The valuation and other costs are separate, and our Spanish mortgage guide sets out who pays what and how a move to another bank works. Confirmed September 2026.

---

The Bottom Line

Spanish mortgages for expats are accessible if you prepare properly:

1. Get your documentation in order before you start
2. Apply to multiple banks – terms vary significantly
3. Budget conservatively – rates can rise
4. Use a mortgage broker if your situation is complex

The difference between a good mortgage and a bad one over 20 years is tens of thousands of euros. Take the time to shop around.

---

Related:

• Buying Property on the Costa del Sol: Complete Guide
• Property Costs in Spain: Complete Fee Breakdown

Confirmed September 2026: Euribor figures, headline fixed rates, legal caps, and the LTV limits, age limits and non-resident products the banks publish. Income and documentation rules are typical requirements; each bank sets its own. Individual offers vary.

Related Guides

• Spanish Mortgage Guide
• Buying Property on the Costa del Sol
• Renting vs Buying in Spain
• Property Costs in Spain
• NIE Spain: Complete Guide

Frequently Asked Questions

📺 Watch the video guide: