Property price
The example purchase price used in this guide is €270,000, equivalent to approximately £232,200.
Buying guide
A practical guide to the main stages, payments, and costs involved in buying property on the Costa del Sol.
When buying a property, it is important to understand not only the property price, but also the associated costs and each stage leading up to the signing of the final deed.
This guide presents a realistic example of purchasing a property on the Costa del Sol for €270,000 (£232,200), including approximate costs, the purchase stages, and the amounts required at each step.
Key takeaway
Understanding the reservation, contract stage, purchase costs, taxes, fees, and post-purchase formalities helps buyers prepare properly and avoid surprises.
This guide uses an example property purchase price of €270,000 (£232,200) to explain the process and approximate costs.
The example purchase price used in this guide is €270,000, equivalent to approximately £232,200.
The goal is to provide a clear and transparent overview of the process so buyers can make informed decisions.
The guide covers approximate real costs, purchase stages, and the amounts required at each stage.
Each step should be handled carefully to ensure the purchase is safe, transparent, and properly documented.
The first step to secure a property is signing a reservation agreement. This usually requires an initial payment between €3,000 and €6,000.
In this example, the reservation payment is €3,000 (£2,580).
After reservation, the legal and property verification process begins to confirm the status of the property and the seller.
After verifying the legal status of the property, a preliminary contract is usually signed to formalize the commitment to purchase.
The preliminary contract sets out the agreed price, deadlines, and purchase conditions.
In this example, 10% of €270,000 is €27,000 (£23,220).
Because €3,000 has already been paid at reservation, the amount to be paid after reservation is €24,000 (£20,640).
This stage is not always mandatory and may be skipped when the buyer has sufficient funds and the final deed is planned within a short period, usually within 3 to 4 weeks.
If the buyer withdraws from the transaction, they lose the amount already paid.
If the seller withdraws from the transaction, they must return double the amount paid.
This structure helps secure the transaction for both parties once the preliminary contract has been signed.
The contract should clearly define the agreed terms, payment amounts, deadlines, and conditions.
In addition to the property price, purchase-related costs must be considered before completing the transaction.
In this example, after signing the title deed and paying the remaining €243,000 (£208,980), the buyer becomes the legal owner of the property and receives the keys.
From that moment, the buyer has approximately 30 days to settle the transfer tax, register the property in the Land Registry, and complete administrative procedures.
There is no need to worry about these procedures, as a legal firm usually handles the process, ensuring proper execution and compliance with deadlines.
ITP at 7%: €18,900 (£16,254).
Estimated notary fees: €800 (£688).
Estimated Land Registry fee: €800 (£688).
Administrative fees plus 21% VAT: €700 + €147 = €847 (£728).
IBI property tax: €228.00 (£196.08).
Waste collection fee: €64.76 (£55.67).
Total estimate
In this example, the buyer pays a proportional part of local charges such as IBI and waste collection because the purchase was completed in February.
After the purchase, the remaining practical step is transferring utility contracts to the new owner.
The water contract should be transferred to the new owner after completion.
The electricity contract should be updated or transferred after the purchase.
Internet service may need to be transferred, activated, or arranged depending on the property.
Domsol takes care of transferring utility contracts so buyers do not have to worry about these formalities.
A successful purchase requires preparation at each stage: reservation, legal verification, contract signing, final deed, tax settlement, registry, and utility transfer.
At Domsol, we supervise every stage of the process to guarantee a safe, transparent, and hassle-free purchase.
Our team helps buyers understand the costs, documents, and steps involved so they can move forward with confidence.
Contact DomsolTalk to us
Speak with Domsol before making a reservation. We can help you understand the steps, costs, and documents involved in buying on the Costa del Sol.
Talk to an advisor