How the process usually works:
Reservation Contract (Contrato de Reserva)
You reserve the property by paying a reservation fee, usually between €6,000–€10,000.
This takes the property off the market while legal checks are done.
It’s usually held in escrow or by the developer’s lawyer/agent.
At this point, you’ll appoint your independent lawyer (recommended).
Due Diligence
& Legal Checks
Your lawyer will:
Verify building licenses and planning permissions.
Check the developer’s guarantees and insurance.
Review the purchase contract.
Confirm no debts, mortgages, or embargoes on the land.
If buying pre-construction, they will also check:
Bank guarantees for your payments (required by Spanish law).
Compliance with construction timelines.
Private Purchase Contract (Contrato de Compraventa)
Signed usually within 30 days after reservation.
At this point, you pay 10%–30% of the purchase price, depending on the developer.
The contract will include:
Payment schedule.
Building completion deadlines.
Penalties for delays.
Specifications of the property.
Progress Payments
If the project is under construction, you’ll make stage payments as agreed.
Common structure:
10%–30% at signing of the private contract.
Further installments during construction milestones.
Final balance (around 60%–70%) at completion, before signing at the notary.
Completion at Notary (Escritura de Compraventa)
The title deed is signed at the Notary Public.
You pay the remaining balance.
The developer delivers possession and keys.
If you’re financing, the mortgage deed is signed at the same time.
Post-Completion Registration
Your lawyer registers the property in your name at the Land Registry (Registro de la Propiedad).
Payment of taxes and fees.
Associated Costs (Pre-construction in Estepona/Manilva)
VAT (IVA): 10% (on new builds)
Stamp Duty (AJD): 1.2% (varies slightly per region, Andalusia reduced this in recent years)
Notary Fees: ~€600–€1,500 (depends on property price)
Land Registry Fees: ~€500–€1,000
Legal Fees: ~1% of property price + VAT
Mortgage Costs (if applicable): ~1%–1.5% setup fees + notary and registration
Special Note for Pre-Construction:
Bank Guarantee: Developers are legally required to issue a bank guarantee for every payment you make, protecting your funds if the project fails.