Buying a Resale Property — Step by Step
From setting your budget and choosing a location, through the legal review and the private contract, to the notarial deed and post-purchase formalities — the complete path to buying a finished property in Spain.
For years, Spain has remained one of the most sought-after destinations for property investment. A Mediterranean climate, more than 300 days of sunshine a year, relatively attractive prices compared with Western Europe, and a stable economy mean the Spanish coast works equally well as a holiday home, a place to live permanently, or a stable investment.
- Property price growth — the average nationwide price growth has recently reached 5–6% a year, and in coastal regions such as Costa del Sol, as much as 7–8%.
- Rental yield — short-term rentals in popular regions yield 5–8% a year, and in the most touristic coastal locations can exceed 10%.
- Foreign demand — in regions such as Costa Blanca and Costa del Sol, around 30% of property transactions are carried out by foreign investors, which stabilises both prices and rental demand.
- Economic growth — Spain's projected GDP growth consistently attracts foreign capital and supports market stability.
Preparing for the purchase
Before starting your search, it's worth precisely defining your available budget. Besides the price of the property itself, you need to factor in: the property transfer tax (ITP) for resales, or VAT for a new-build purchase (7 to 10% of the price), notarial and registration fees that depend on the property's value, and running costs — management, utilities, and the property tax (IBI).
Costa del Sol or Costa Blanca?
Costa del Sol attracts international buyers with luxury properties, exclusive restaurants, golf courses, and a Mediterranean climate — it's a high-return market for short-term rentals, where yields reach 8–10%, with strong potential for capital appreciation.
Costa Blanca offers equally good infrastructure at more accessible prices, attracting people looking for a permanent home or a quiet retirement location. Rental yields here are lower (5–7%), but the region remains stable and predictable, and is popular with tourists from across Europe, especially the UK.
In short: Costa del Sol suits those looking for premium properties with a high rate of return, while Costa Blanca suits those who value affordability and stable, predictable rental income.
The purchase process step by step
Viewings and property assessment
After shortlisting interesting listings, it's worth arranging in-person viewings to assess the technical condition and location. For clients who cannot travel to Spain, live online viewings are arranged.
Legal review of the property
A lawyer specialising in this area reviews the property's documentation to confirm it's free of mortgages or other liabilities — a key safeguard against financial and legal problems down the line.
Obtaining the NIE number
The NIE number is an identifier required for any financial transaction in Spain — needed to open a bank account and to sign contracts. The application can be submitted in person in Spain or at a Spanish embassy.
Signing the private contract
The contract sets out the price, the terms of sale, and the expected date for signing the final deed. The buyer pays a deposit — usually equal to 10% of the property price. If the transaction falls through due to the seller's fault, the deposit is usually returned at double its value.
Opening a bank account
Necessary for settling the purchase and recurring payments. A non-resident needs a passport and proof of income (tax return) for this.
Securing financing
When buying with a mortgage, it's worth obtaining preliminary loan approval in advance — the bank will ask for proof of income and bank statements from recent months, and will assess your creditworthiness on that basis.
Signing the purchase-sale deed
The final title deed is signed in the presence of a notary, who confirms the identity of the parties and the legality and terms of the transaction. The notarial deed formally transfers ownership to the new buyer.
Registering the property
After the deed is signed, the property is registered with the Spanish Land Registry, giving the buyer formal, legal confirmation of ownership and protection against third-party claims.
Taxes and notarial fees
The final step is paying the property transfer tax and notarial fees. Costs vary by region and property type — it's worth budgeting an extra 8–10% of the purchase price for them.
After the purchase, step by step
Transferring utilities
Once the purchase is finalised, the utility contracts need to be transferred to the new owner.
Property insurance
Recommended for every owner — it protects against damage and unforeseen accidents. The cost of the policy depends on the type and location of the property.
Furnishing the property
Help from an interior designer with arranging the space can be especially useful for clients who cannot be in Spain in person — from choosing furniture to a full fit-out.
Property management
For long-term or holiday rentals, full-service management covers finding tenants, maintenance, and repairs.
Tourist licence (if applicable)
A property intended for short-term rental must meet certain quality and safety standards, be registered with the relevant local authority, and comply with health and safety regulations. Not having a tourist licence can lead to heavy fines and a ban on renting the property out.
Choosing the right property and carrying out the transaction correctly is the key to investment success in Spain — and full support at every stage of this process is what CDH Luxury guarantees its clients.
Original material by Costa Dream Home Luxury.
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