When purchasing a property, RESEARCH and PREPARATION are crucial to starting off right. And, especially when looking for properties in Marbella, finding the RIGHT REAL ESTATE AGENT is the first section of research.

The properties for sale are accessible to most real estate companies to market and sell. This is primarily because all Marbella's real estate firms have access to the SHARED DATABASE.

When searching for a real estate firm or agent, you can use on-line resources ( Google, social media, Linkedin ) or follow recommendations of your friends who have successfully gone through this process already. You don't have to commit to one particular agent but it is always best to stick with the firm or agent you feel most comfortable with. At GIL ESTATES we have the knowledge and experience to back your trust.

Why should I use a real estate agent?

With the Internet at our disposal 24/7, some people may think it would be easy to research and purchase a property independently without needing a real estate agent. This is a big misconception; there is a reason real estate agents exist and should not be overlooked.

• An agent's job is to do all the searching and prioritise your home search, so you don't have to.
• Secondly, an agent will help you see what you miss. Say you like a property so much you ignore minute problems and details; an agent would make you aware of them before it's too late.
• Furthermore, an agent helps you see investment potential in a property.
• Your agent also acts as your area guide and will inform you of all you need to know about the area.
• Moreover, your agent will tap into their network to save you hours of research for service providers, contractors and more.
• Most importantly, an agent is a master negotiator. Your real estate agent will be there for you throughout the negotiation and protect your interests to get you the best deal possible.

Here are a few recommendations on how to organise your property viewings:

• We recommend, as always, to plan ahead and have a pre-selection of properties you like in advance.
• At this point, you should have selected the real estate firm and agent to work alongside you. Let your agent organise multiple viewings that will take place over an entire day. This is a great way to familiarise yourself with the market, wasting as little time as possible.
• We suggest viewing around five properties in a day. Any more than that can overwhelm you and cloud your judgement. However, if you have only planned a short trip, consider viewing up to 10 properties on your designated tour day.
• Study the AREA, as it is not only vital that you like a property and where the property is located. For example, you may want to live in a gated community, be close to the beach, be within a reasonable distance of a school, avoid street noise, etc. Take a drive around the area, and get a feel for where the property is located.
• If you like a particular property whilst on a daytime viewing, we recommend going back again during the nighttime, as any house feels different at night, and it could change your perspective of the property.
• Be prepared for viewings to change and be modified because no matter how much you plan, you may change your mind on what you are looking for. A property you see online may not be as you imagined when viewing it in person. This is why it is important to choose your agent wisely, as an excellent real estate agent will adapt to your situation and rapidly fix dates and times to find the best solution for you.

We suggest ensuring all your documentation is in place before or during your trip to Marbella. That way, you can have everything planned, making this less time-consuming and financially straining.

Specific requirements before beginning the purchasing process:

APPLY FOR an N.I.E. NUMBER

An N.I.E Number (Número de Identidad Extranjero) is a sequential identification number allocated to foreigners, needed for identification purposes and practically doing anything in Spain: opening a bank account, obtaining a Spanish phone number, working or studying, etc.

If you are planning from abroad, you can apply for an N.I.E via a Spanish Consulate. If you are already in Spain, you can do this in person at the Police Station or via a legal administrator (this is what we call a gestor in Spanish).

In Andalucía, the documentation required to apply for an N.I.E is:

• If you have a European Passport: show your main identification page and have a photocopy of it.
• All Other Passports: show your full passport and have a photocopy of all the pages at hand, two ID photos and two copies of the Ex-15 application form filled out and signed.
• A valid reason why you need an N.I.E (e.g. for work, buying a car, buying property, etc.).

Once you have obtained your N.I.E, you can apply to open a Spanish bank account. We recommend such banks as Sabadell, BBVA, CaixaBank, Santander, and Bankinter, to name a few. It must be noted that banks in Spain require you to be physically present at a bank branch to open a bank account.

Required documentation:

• Proof of identity (e.g. passport or ID card) is usually asked to be presented in person.
• Proof of Funds / Tax Declarations
• Any other documents the bank deems necessary

As well as the standard documentation, you may be asked for proof of address (rental contract, recently paid community bills, etc.). Some banks (like BBVA) ask to provide a certificate of non-residency (Certificado de No Residente). To obtain one, you must apply at a Spanish police station, which typically takes 10 days to process.

The documents may need to be officially translated into Spanish, and if they are from abroad, they may need to be authenticated using an Apostille stamp. Most banks don’t charge for opening an account, but you will pay an annual fee for administration (monthly or quarterly).

It is highly recommended to find a lawyer and a tax advisor before you start purchasing a property in Marbella and the Costa del Sol. Make sure you hire a lawyer who speaks your language. Marbella is an international city home to many individuals who speak various languages, so it will be relatively easy to find a solicitor who speaks your language.

MAKING AN OFFER

When you make a purchase offer, we advise you to put your offer down in writing through your agent. The offer letter must include the offered price, proposed payment terms and deadlines.

When you are coming up with an offer, make sure you understand what will be included in the sale of the property, like furniture and fixtures. Special conditions or requirements that you would like the seller to consider before purchasing a property must be clearly stated in the original offer.

REQUESTING A TECHNICAL DUE DILIGENCE

It is worth mentioning that before, during or even a subject to making the offer, you can request technical due diligence to be performed on the property. Technical due diligence provides insight into the risks involved in owning property whilst still in the purchasing process.

When the seller accepts your offer, you move on to the legal phase of the purchase process. When buying property, you will be asked to sign a RESERVATION contract, a PURCHASE contract and an official DEED at the Notary on the day of completion.

1. RESERVATION CONTRACT

   A reservation contract is a document signed by the buyer and vendor that allows the property to be reserved for an agreed-upon time, typically from 7 to 14 days or more. A reservation fee is also applied in this instance by the seller for the buyer to pay. The payment size can vary from €5,000 - €20,000 or any other mutually agreed upon by both parties. A fee is paid for the property to be taken off the market during an agreed-upon time by both parties. If the buyer decides to go ahead and purchase the property, then the amount paid in the reservation fee goes towards the purchase price.

   However, suppose the buyer chooses not to go ahead with the purchase. In that case, the buyer loses the reservation fee as compensation as the property is off the market, unless special conditions are included in the reservation contract that allows the buyer to back out without losing money.

2. PRIVATE CONTRACT ( with a 10% payment )

   After the reservation contract is signed, you sign a private contract and then make a payment that amounts to 10% of the purchase price, which includes the reservation fee paid prior.

3. MORTGAGE

   You can apply for a mortgage in Spain if it’s in your interests. Do ensure that you start the process as soon as possible – you may apply for a mortgage pre-approval. GIL ESTATES can recommend a specialist helping you to go through this process smoothly. Please consider that getting a mortgage approved in Spain can take up to 2 months.

   If you decide to go ahead and request a mortgage, the bank will also require additional documents, although they are mainly interested in proof of any recurring income.

   Mortgage conditions:

   • Amount of mortgage: up to 50% of the purchase price
   • Term: 15 to 25 years
   • The early repayment fee is around 0.5% to 0.25% of the amount repaid.
   • The bank may also require life and property insurance as a prerequisite for a mortgage.

4. COMPLETION OF THE PROPERTY PURCHASE – Escritura de Compraventa

   All parties involved in the completion must attend: buyers and sellers and their legal representatives or lawyers, bank personnel for redemption or subrogation of an existing loan, a bank providing a new mortgage, etc.

   The moment you sign the title deed at the notary's office (notaría pública), an immediate transfer of possession and full responsibility for the property is passed over to you. The payment for purchasing the property is also made at the same time via bank cheques. In Spain, this payment method is the safest for both parties, as the payment is made when the property is passed on to the buyer, and banks can give a fast and verified confirmation that the payment has indeed been made.

   Once you have signed a notarial sale deed and paid all required taxes, the deed is registered at the Land Registry. This process can take up to three months. After registration, the original deeds and all invoices relating to the transaction will be available. You are then at liberty to change all utility bill contracts such as water, electricity, gas, telephone and HOA bills into your name and bank details.

What taxes are required when buying a property in Spain, and when should they be paid?

Our comprehensive Tax Guide provides detailed information on who is responsible for paying taxes, what taxes apply, and when they must be paid throughout the purchasing process. Explore our guide for a clear and thorough breakdown of all tax obligations.

EXPENSES RELATED TO PROPERTY: