Buying on the Costa del Sol: abogados, notaries and how to dodge an illegal build

In Spain the notary checks that the sale is legal, not that the house is. Checking the house is your lawyer's job, so make sure the lawyer is yours.

The short version

• Hire your own independent lawyer (abogado), not one recommended by the seller or the estate agent. The FCDO tells Brits to use an English-speaking lawyer before buying property or land [1].
• Resale homes in Andalusia pay transfer tax (ITP) at a flat 7%. New builds pay 10% VAT (IVA) plus 1.2% stamp duty (AJD) [2].
• Budget roughly 8% to 10% on top of the price for taxes and fees on a resale, a little more on a new build.
• Illegal and irregular builds are a real risk in parts of the Costa del Sol, especially rural villas. The checks are a nota simple, the cadastre and the town hall's planning records.
• Spain's golden visa for property buyers ended on 3 April 2025. Buying a home no longer gives you a route to residence [3].

Pound conversions use the Bank of England spot rate of 5 November 2026 (£1 = EUR 1.20).

How buying in Spain differs from back home

The big surprise for Brits is who does what. In England and Wales your solicitor does the searches and the conveyancing, and the Land Registry records the result. In Spain the work is split three ways:

The notary is neutral. They won't tell you the pool was built without a licence, or that the community is suing the developer. That's why the FCDO's advice to get a lawyer before you commit is the first rule, not a nice extra [1].

There's no gazumping-style "subject to contract" stage once you've signed the arras contract, either. In Spain, deposits bite.

The buying process, step by step

1. Get an NIE. You need a foreigner's identity number (NIE) to buy, pay tax and sign at the notary. Our guide to NIE and TIE numbers explains how.
2. Open a Spanish bank account. Purchase money, taxes and bills usually go through it. See banking in Spain as a Brit.
3. Instruct your own abogado. Look for one registered with the Málaga Bar Association (Ilustre Colegio de Abogados de Málaga) who isn't linked to the agent or the developer.
4. Reservation. Many agents ask for a small reservation fee to take the property off the market. Don't pay until your lawyer has had a first look.
5. Due diligence. Your lawyer checks the title, debts and planning status (more below).
6. Private contract (contrato de arras). You pay a deposit, often 10%. Under the usual "arras penitenciales" terms, if you pull out you lose it, and if the seller pulls out they pay you back double.
7. Completion at the notary (escritura). You pay the balance, sign the public deed and get the keys.
8. Taxes and registration. Your lawyer or gestor pays the purchase tax and registers the deed at the Land Registry. Until it's registered, you aren't fully protected against third parties.
9. After the move. Switch the utilities, the IBI (local property tax) and the community fees into your name, and get on the padrón at the town hall if you're living there.

Illegal builds: what to check

The Costa del Sol has a long history of building first and asking for permission later. Some homes were built on rustic (rural) land without a licence. Others had a licence that was later annulled, or had extensions, pools and enclosed terraces added without one. Marbella's planning disputes have been in the courts for years. For a buyer, the danger is that the town hall can fine the owner, refuse services, or in the worst cases order demolition.

Andalusia's planning law, the LISTA (Ley 7/2021), includes the status of "asimilado a fuera de ordenación" (AFO). In plain English, an AFO home is an irregular building that is too old to be demolished, so it can be lived in and connected to services, but it can't usually be extended and can be hard to mortgage or sell. AFO isn't a scandal in itself, but you should know if you're buying one and pay accordingly.

Your lawyer should check:

• The nota simple from the Land Registry: who owns it, the registered size and any mortgages, charges or court notes.
• The cadastre (Catastro) record: the official description and size. If the Catastro, the Land Registry and what's on the ground don't match, ask why.
• The town hall's planning records: whether the land is urban or rustic, whether there are open planning cases, and whether the house and every extension had a licence.
• The occupation document. In Andalusia, the old first occupation licence has largely been replaced by a "declaración responsable de ocupación" filed with the town hall. Your lawyer will know which applies to the home you're buying. Without proof the home can be lived in, utility contracts can be a faff.
• Debts that follow the property: unpaid IBI and community fees. Ask for receipts and a certificate from the community administrator.
• For off-plan purchases: the building licence and a bank guarantee or insurance for stage payments.

A survey isn't standard in Spain the way it is in the UK, but you can commission one. With older villas in the hills behind Mijas or Estepona, it's money well spent.

Purchase taxes and costs

Andalusia cut its transfer tax to a flat 7% in 2021. Lower rates exist for a main home worth up to EUR 150,000 (about £125,000), with a lower rate again for buyers under 35, and for some other groups [2]. Most British buyers on the coast won't qualify. A draft Andalusian budget for 2027 would trim the general rate to 6.75%, but that's a bill, not law [2].

A worked example on a EUR 350,000 flat (about £291,600):

• Resale: ITP at 7% is EUR 24,500 (about £20,400).
• New build: IVA at 10% is EUR 35,000 (about £29,200), plus AJD at 1.2%, which is EUR 4,200 (about £3,500).

Add the notary, registry, lawyer and any mortgage costs. If you're taking a Spanish mortgage, there's a valuation and possibly an arrangement fee.

When you sell later as a non-resident, the buyer must hold back 3% of the price and pay it to the Agencia Tributaria on account of your capital gains tax. The seller also usually pays the municipal plusvalía tax. Keep every invoice from the purchase: it reduces your gain on the way out.

On the UK side, a home in Spain is outside UK stamp duty, but if you're still UK resident when you sell, any gain may be taxable in the UK too. A tax adviser who knows both countries can check your situation.

The end of the golden visa

From 2013, buying Spanish property worth EUR 500,000 (about £416,600) or more could get you a residence permit, the "golden visa". It was popular with non-EU buyers on the Costa del Sol, including Brits after Brexit. Spain abolished it through Organic Law 1/2025, with effect from 3 April 2025 [3].

That means:

• Buying a home no longer gives you any right to live in Spain. As a non-resident owner you're limited to 90 days in any 180. See our guide to the 90/180-day rule.
• To live here, you need a visa such as the non-lucrative visa or the digital nomad visa.
• Anyone who already held a golden visa keeps it for the period it was issued for, and applications made before 3 April 2025 were decided under the old rules. Renewals follow the rules in force when the first permit was granted [3]. A lawyer can check your case.

In 2025 the Spanish government also floated a 100% tax on homes bought by non-EU buyers who don't live in Spain, which would include Brits buying a holiday home. A bill creating a special tax on these purchases was registered in Congress in May 2025, but as of the latest update we found it was a bill, not law [4]. Check before you sign.

Buying abroad is a bit of a minefield even for people who've bought three houses back home. Ask around in our community group for Brits in Spain: someone will have bought on your urbanisation and know where the bodies are buried, planning-wise.

Sources

1. GOV.UK (FCDO): Living in Spain (updated 3 July 2026)
2. Guía Fiscal: ITP and AJD in Andalusia, 2026
3. KPMG Spain: Legal alert on the removal of the golden visa
4. Cuatrecasas: Non-EU buyers beware (3 December 2025)

Keep reading

• Renting in Málaga
• NIE and TIE: Spain's foreigner numbers explained
• Spanish inheritance tax and wills for Brits in Andalusia
• Keeping your UK home or selling it before you go