What’s your dream home? A luxurious, beautiful villa with a beachfront? Or a penthouse with stunning views and a swimming pool? Everyone has a dream to own a home eventually. Among the ideal places to own a home is Marbella in Spain. You might wonder why? Marbella has a lot of natural beauty and art. Owning a Marbella property would allow you to enjoy the vibrant city and beautiful weather.
But what are the main reasons that make Marbella property so attractive for investors? Keep reading to learn more about buying Marbella property.
Why Buy Marbella Property?
Marbella is a city in southern Spain located on the Costa del Sol. It’s known for its beach, beautiful scenery, and pleasant climate. Marbella is the largest city in Andalusia.
Marbella is one of the most popular holiday destinations in Europe. It was purchased by King Alfonso XII and transformed into a luxurious holiday destination. People want to get their hands on the most beautiful villas, beachfront apartments, and condos on the coast.
What makes property in Marbella ideal?
Marbella is more than just another tourist destination. It’s an ideal place to live and raise a family. That’s why it has become home to so many expats over the years.
If you’re investing in property, Marbella is a great option. The prices are low compared to other European countries. The city promises a nice lifestyle.
Marbella has an estimated population of 70,000 people. There are 100 golf courses in the area, and new high-end properties are continually being built. This makes it a very attractive option for foreign investors.
The weather is fantastic. Throughout the year it is between 47F and 84F. The summers and winters are not extreme.
If you are an entrepreneur, there’s no shortage of business opportunities in the city. You can invest in tourism, restaurant, beauty, and retail.
Step-by-Step Guide to Buying Property in Marbella
Buying a new home is a major decision in a person’s life. It’s not only a financial investment but also an emotional and social investment. It will affect your life for years to come.
It’s paramount to follow the right procedures for buying property. Otherwise, you could lose money or be forced to move again.
Here are important steps to follow when buying Marbella property:
Research
The first step for buying property is research. Understand your current and future needs. What type of property are you looking for, which location, and what’s your budget?
You will come across many “property for sale” signboards during your search. Before settling for one property, explore your options. Choose a property that suits your needs.
Do enough research to be confident in your choice. Some of the questions that should be answered include:
- How far is it from your place of work?
- What schools are in the area?
- What are places of interest close by?
- Who are the major retailers in the area?
- What are the local amenities?
- Is there a good selection of restaurants?
- How far is it from the beach or mountains?
You can use a real estate agent or online research to gather information. Working with a local realtor in Marbella would help you gather important information. A real estate agent has better knowledge of the properties available and what matches your needs.
Seek Legal Advice
Many investors often overlook legal counsel. Whether or not you are a citizen, make sure your property follows all legal rules and regulations. This includes obtaining the proper visas for your investment property if required by law.
The legal requirements for citizens and non-citizens differ slightly. Foreigners may need the Spanish Golden Visa to acquire property.
For a Spanish Golden Visa, you need to invest in at least 500,000 Euros worth of real estate property. You must also be age 18 or above, and you need to have no criminal records.
The authorities in Spain have recently been clamping down on non-resident owners who do not comply with their legal obligations. There have been cases where they have revoked the titles of properties owned by non-residents.
Legal advice informs you of these basic government requirements. They also offer counsel on how to go about buying the property. Make sure to work with a lawyer with expertise in real estate.
Conduct Due Diligence
Due diligence is the process of investigating a business or an investment. The goal is to identify any potential problems. Due diligence is not just for big companies and investors.
Every time you make a big decision, due diligence helps you make better-informed decisions. Due diligence for a property purchase is a legal requirement in Spain. It is also a necessity considering the property market in Spain.
The due diligence process is divided into two parts:
Technical Due Diligence
Technical due diligence provides information on the construction and structure of the property. It includes an analysis of the property’s physical characteristics. This includes the financial history of the project.
Engineers and construction experts conduct technical due diligence.
Legal Due Diligence
Legal due diligence provides insights on the property rights and pending lawsuits against the property. It includes an analysis of the property’s legal status and title. It also reviews the land use plan, zoning regulations, and building codes.
Real estate attorneys conduct legal due diligence.
Get into Contract
When buying property, get into a legal contract. It can save you in the future and help you avoid scams.
Get a signed contract for the purchase of your new property. This should come along with all the documents needed to move forward with the purchase.
Look at the clauses of the contract carefully to avoid any surprises later. Find out what’s included in this contract, who it is being issued to, and the terms. It should have your name on all documents and the agent’s details.
Before signing the contract, ensure you understand all the terms. Have your lawyer review the contract. This will ascertain your interests are best represented, and the terms of sale are ideal.
Don’t commit any funds without signing the legally binding contract.
Obtain an NIE
The NIE is a number that identifies you as a resident of Spain. Without the NIE, you cannot buy property in Spain. This is the equivalent of a Social Security number in the US or a taxpayer ID number in Canada.
If you are a non-resident, get an NIE number from the nearest police station. You will need your passport and fill out an application form. They will ask for your name, address, and other basic information.
Upon completion, the police will give you a temporary NIE number. This temporary NIE number is good for six months. You can use it to open a bank account and get a cell phone.
Sign the Transfer Documents
Several documents need to be signed. This includes transfer contract, Registro de la Propiedad or a Spanish notary. You can have a lawyer to represent you at the notary.
Alternatively, you have to show up in person and sign all necessary documents. It is easy to get intimidated by the process. Having a lawyer or reliable real estate agent will help make the process smooth.
During the Notary hearing, you pay the remaining balance, and the keys to the property are handed. Other documents like the title are also signed off. This allows the legal transfer of the title ownership to your name.
The title is later registered at Land Registry for transfer.
Pay Legal Fees and Taxes
Remember to pay legal fees and taxes. That might seem like a minor detail in the grand scheme of things. However, it’s quite important.
If you don’t pay the taxes and fees properly, you might end up with hefty fines. Your property can also be confiscated.
There are two main taxes in Spain: IBI and Patio de Vivienda. IBI stands for Impuesto de Bienes Inmuebles. It is a tax that is based on the value of your property.
Patio de Vivienda, on the other hand, is a tax that you pay when you buy a property. It is usually between 1% and 2% of the property’s value.
You may need to pay for maintenance, taxes, and other fees. Make sure you have enough money to cover all of these expenses.
Buy Your Dream Home in Marbella Today
Marbella is the perfect place to live and retire. The sun, the sea, and the charm of the Spanish lifestyle will keep you fulfilled.
Before you buy real estate in Marbella, know what to expect. This guide briefs you on the legal process of buying Marbella property.
Choose Marbella is an ultimate real estate agent in Marbella, Spain. Whether you are looking for luxury villas for sale, condos, or apartments, we will help you. We help people buy and sell property around Marbella, Puerto Banus, Nueva Andalucia, Benahavís, and Estepon.
Contact us today to get assistance in securing your dream home in Marbella.