How to buy the perfect new build properties on the Costa del Sol: A buyer’s checklist
As we welcome the new year, it is natural to look forward and to hope that 2025 will be the best year yet. If you have been considering buying a home in one of the new developments on the Costa del Sol, one way to ensure your dreams will come true is to finally take the first step towards finding and buying your dream home on this beautiful Mediterranean coast.
Pardalis Estates is an English owned real estate agency, staffed by a team who have been in your shoes, having fallen in love with the area and bought new build properties on the Costa del Sol. We understand that purchasing a home overseas can be a daunting prospect and you will have many questions, especially if you are not fluent in the language and are unfamiliar with the Spanish property buying process.
We’re happy to share the benefit of our experience by answering the most frequently asked questions by foreign buyers interested in purchasing new build and off-plan property on the Costa del Sol. This short guide is designed to put your mind at rest by providing an overview and guidance on how to navigate the process, to make it an exciting and stress-free experience.
Secure the right real estate agent
At the top of the list is to find the right real estate agent. This is of paramount importance, as your agent will be responsible for supporting and guiding you from the start to the finish. Pardalis Estates specializing in selling off-plan and new developments on the Costa del Sol, which means we have excellent local knowledge and relationships with established developers, giving us early access to any villas and new build apartments on the Costa del Sol.
Our experienced team of real estate agents, work closely with clients to really understand their family’s property and lifestyle requirements. Only then is it possible to collate a portfolio of selected projects that suit our clients’ requirements and expectations, including detailed information about the properties, prices, buying costs, ongoing running costs, the area and much more.
Establish realistic budget
Before you start looking at properties or even the areas you prefer, the first task is to establish a realistic budget. This should take into account both the price of the property plus the buying costs, which is usually between 10 to 15% of the property price. It is also important to remember that you will also need to budget for running costs and taxes after you have purchased the property. As a rule of thumb, the more on-site facilities, the more you will need to pay in community fees.
If you are planning on taking out a mortgage, it is important to get in touch with a mortgage advisor or a Spanish bank. As a foreign resident the LTV ratio is often between 60 to 70 percent, whereas it is possible for residents to borrow up to 80 per cent of the property price.
Take care of admin
Like any financial transaction in Spain or indeed any other country, there is a modicum of related administration involved. In Spain, before you can buy your property or contract any services, it is necessary to obtain a fiscal number, your NIE (Foreigner Identification Number). This unique number and identifies you in all legal, official and financial transactions throughout Spain. As soon as you make the decision to buy real estate on the Costa del Sol, we recommend that you or your lawyer sort out your NIE as soon as possible. This will allow you to act quickly when you find the right home.
Spanish bank account
After you have obtained your NIE, which can be done via a lawyer or gestor (Pardalis Estates can help you find suitable legal assistance), the next step is to open a Spanish bank account. This is necessary, as you will need to pay buying fees, mortgage payments (if bought on credit), utilities, community fees and taxes via this account. It is possible to open an account in person or by giving Power of Attorney to a Lawyer so that they can act upon your behalf.
Property viewing trips
Even if you live overseas, it is important to view prospective properties before you buy. At Pardalis, we can arrange a viewing trip and put together a portfolio of suitable properties based on your specific requirements. This will allow you to view the properties, or in the case of off-plan properties, to visit the sales office and the site. It is also an opportunity for you to familiarize yourself with the local vicinity and to explore the wider Costa del Sol.
Pay a reservation deposit to secure the property
When you find a property to buy on the Costa del Sol, you will need to pay a reservation deposit of around €6,000. Upon payment of the deposit, the property is removed from the market and reserved for you. Once your lawyer has carried out the due diligence (Usually around 2 weeks) 10 per cent of the purchase price is due in the case of a resale, for off plan purchases this figure varies between 20% to 40%. At this stage if you decide not to buy the property, the vendor can keep your deposit (unless you have valid reasons pertaining to the sale).
Choose a Notary
The next step, signing the ‘pre-contract documents’ will take place around 14 days after the initial reservation, when your lawyer has had chance to carry out due diligence and you are happy with the terms and conditions of the purchase. At this stage your lawyer will engage a Notary to manage the signing of the final Deeds and contract.
Sign the contract
There is now just one more step before you own your brand-new property, which is to sign finalise purchase which involves signing the Deeds, registering your purchase and paying the last tranche of the purchase price to the vendor. Your real estate agent will accompany you to the Notary and support you throughout the entire process. Alternatively if you have signed power of attorney to your lawyer they will carry out this process for you.
Receive the keys and move in
When you receive the keys, you will be the proud owner of your new property. After which you may need to connect utilities, appliances, decorate or maybe undertake reforms. If required, Pardalis can assist with these tasks, either by managing the jobs in-house or introducing you to trusted contractors.
If you would like more information the range of new developments on the Costa del Sol or more details about buying costs, fees and taxes payable in Andalucía, contact Pardalis Estates. Whether you are interested in find out in luxury villas for sale in Marbella, Spain or Fuengirola apartments for sale, we have the right choice for you. Call + 34 951 272 598, WhatsApp + 34 613 645 845, email [email protected] or visit the website www.pardalisestates.com.
