Marbella is a beautiful city on Spain’s Costa del Sol. It offers sunny weather, lovely beaches, and a relaxed lifestyle. Many Americans are interested in buying property here. This guide will help you understand the process and what you need to know.
Step-by-Step Guide to Purchasing Property
Research the Market
Start by looking at properties online. Understand the different areas of Marbella. Some neighbourhoods are close to the beach, others are in the mountains. Decide what suits your lifestyle. Research property prices in different areas. This helps you set a realistic budget.
Set a Budget
Consider how much you can afford. Include all costs, not just the purchase price. Remember to factor in taxes, fees, and maintenance costs.
Find a Reliable Real Estate Agent
Working with a good agent is important. They can show you properties that match your needs. Lula Homes is an agency with experience helping American buyers.
- Benefits of Using an Agent
- Knowledge of the local market.
- Help with negotiations.
- Assistance with paperwork.
View Properties
Once you find properties you like, plan a trip to Marbella. Seeing the properties in person is important. It helps you get a feel for the area.
Virtual Tours
If you can’t travel immediately, many agents offer virtual tours. This can help narrow down your choices.
Hire a Lawyer
A Spanish lawyer, or “abogado,” will protect your interests. They check that the property has no debts or legal issues. They help with contracts and paperwork.
- Choosing a Lawyer
- Look for someone independent, not connected to the seller.
- Ensure they speak English if you’re not fluent in Spanish.
Make an Offer
If you find a property you like, you can make an offer. Your agent will help you negotiate the price.
- Negotiation Tips
- Be prepared to negotiate.
- Understand the seller’s situation.
- Be realistic with your offer.
- Take advice from your agent
Sign a Reservation Agreement
This agreement reserves the property for you. You usually pay a small deposit at this stage, often between €6,000 – €10,000.
Due Diligence
Your lawyer will carry out due diligence. They check the property’s legal status, planning permissions, and any debts or charges.
Sign a Private Purchase Contract
This contract outlines the terms of the sale. You usually pay 10% of the purchase price as a deposit.
- Contract Details
- Purchase price.
- Payment terms.
- Completion date.
- Any special conditions.
Arrange Financing
If you’re using a mortgage, finalize the arrangements with your bank.
Complete the Purchase
The final step is signing the deeds before a notary. You pay the remaining amount, and the property is officially yours. The notary ensures the transaction is legal and properly recorded.
Register the Property
After completion, your lawyer registers the property in your name at the Land Registry.
Legal Requirements and Visa Information
NIE Number
You need an NIE number to buy property in Spain. This is a foreigner’s identification number. Your lawyer can help you get it.
Residency and Visas
As an American, you can stay in Spain for up to 90 days without a visa. If you plan to stay longer, you need a visa.
Non-Lucrative Visa
Allows you to live in Spain but not work. You need to show you have enough income to support yourself.
Golden Visa
If you invest €500,000 or more in property, you can get a Golden Visa. This allows you to live and work in Spain.
- Benefits
- Residency for you and your family.
- Travel within the Schengen area.
- No minimum stay requirement.
Tax Identification Number
You also need a Spanish tax identification number. This is important for paying taxes related to the property.
Tax Implications
When buying property in Spain, understanding the taxes involved is important. As an American buyer, you’ll encounter several taxes:
Property Transfer Tax (Impuesto de Transmisiones Patrimoniales – ITP)
If you purchase a resale property, you pay a transfer tax. In Andalusia, where Marbella is located, this tax ranges from 8% to 10% of the purchase price.
- Rates:
- Up to €400,000: 8%
- €400,001 to €700,000: 9%
- Over €700,000: 10%
Value Added Tax (VAT) and Stamp Duty
For new properties bought directly from a developer, you pay VAT (called IVA in Spain) at 10% and a stamp duty (Actos Jurídicos Documentados – AJD) at 1.5%.
Notary and Land Registry Fees
These fees are necessary to complete the transaction and register your ownership. They usually amount to about 1% to 2% of the purchase price.
Annual Property Taxes
After purchasing, you’ll have ongoing taxes:
Municipal Property Tax (Impuesto sobre Bienes Inmuebles – IBI)
A local tax based on the cadastral value of your property, which is often lower than the market value.
Garbage Collection Tax (Basura)
An annual fee for waste collection services.
Non-Resident Income Tax
Even if you don’t rent out your property, non-residents are subject to income tax on Spanish properties. It’s calculated as a percentage of the cadastral value.
- Rates:
- EU/EEA residents: 19%
- Non-EU residents, including Americans: 24%
Capital Gains Tax
If you sell your property at a profit, you’ll pay capital gains tax on the gain.
- Rates:
- Up to €6,000 gain: 19%
- €6,001 to €50,000: 21%
- Over €50,000: 23%
Wealth Tax (Impuesto sobre el Patrimonio)
Spain has a wealth tax for residents and non-residents owning assets in Spain over certain thresholds. In Andalusia, the exemption threshold is €700,000 per person, plus €300,000 for your primary residence.
Consult a tax professional familiar with both U.S. and Spanish tax laws to understand all implications. Spain and the U.S. have a tax treaty to avoid double taxation, but professional advice is essential.
Financing Options for Non-EU Citizens
Spanish Mortgages
Non-EU citizens can get mortgages from Spanish banks. Typically, banks offer up to 60% of the property’s value to non-residents.
- Documentation Needed
- Passport and NIE number.
- Proof of income (tax returns, pay stubs).
- Bank statements.
- Credit report.
Interest Rates
Interest rates in Spain are usually lower than in the U.S. Rates can be fixed or variable.
- Typical Rates
- Fixed rates around 2% to 3%.
- Variable rates may be lower but can increase.
Costs Associated with Mortgages
- Arrangement Fee
- Usually around 1% of the loan amount.
- Appraisal Fee
- The bank requires an appraisal of the property.
- Insurance
- You may need life and property insurance as a condition of the loan.
- Currency Exchange
- Consider the exchange rate between dollars and euros. Currency fluctuations can affect the cost of your mortgage.
- Using U.S. Financing
- Some buyers choose to finance the purchase through a U.S. bank or by leveraging assets at home.
- Home Equity Loan – You can use equity from your U.S. property.
- Personal Savings – Paying in cash avoids mortgage costs but consider liquidity.
- Some buyers choose to finance the purchase through a U.S. bank or by leveraging assets at home.
Experiences of American Buyers with Lula Homes
Many American buyers have successfully purchased properties in Marbella through Lula Homes. They appreciate the personalised service and local expertise.
Clients often mention that the team at Lula Homes made the process smooth. From finding the right property to handling paperwork, the agency provides support at every step.
Buyers value the clear communication and guidance provided. Navigating a foreign real estate market can be challenging, but with professional assistance, it’s manageable.
Cultural Considerations
Language
While many people in Marbella speak English, learning some Spanish is useful. It helps with daily life and shows respect for the local culture.
Business Hours
Shops and businesses may close in the afternoon for siesta. Dinner is usually eaten late, around 9 pm or later.
Legal System
The legal system is different from the U.S. Having a good lawyer and agent is important to navigate the process.
Healthcare and Insurance
Understanding Spain’s healthcare is key when moving to Marbella:
Public Healthcare System
Spain offers quality public healthcare to residents. If you become a legal resident and contribute to social security, you can access these services.
Private Healthcare
Many expats choose private insurance for faster access and English-speaking staff.
- Benefits
- Shorter waiting times.
- Access to private facilities.
- English-speaking doctors.
- Costs
- Premiums vary based on coverage and age.
- Compare providers to find the best option.
Health Insurance for Residency
Applying for a residency visa, like the Non-Lucrative Visa, requires private health insurance with full coverage in Spain and no co-payments.
Emergency Services
- Dial 112 for emergencies, the European emergency number.
Additional Insurance
Home Insurance
- Protects against damage and theft.
- Often required by mortgage lenders.
Life Insurance
May be required if you take out a mortgage.
Review policy details carefully. An insurance broker familiar with expat needs can help you choose the right coverage.
Lifestyle and Communit
Expat Community
Marbella has a large expat community. There are social clubs and groups for Americans.
Activities
Enjoy golf, sailing, hiking, and cultural events.
Cost of Living
Generally lower than in major U.S. cities. Dining out and entertainment are affordable.
Buying property in Marbella as an American is an achievable goal. With the right information and professional help, the process can be straightforward.
Lula Homes has experience assisting American buyers. They can guide you through each step, from finding the perfect property to completing the purchase.
Marbella offers a wonderful lifestyle with its sunny climate and beautiful surroundings. Investing in property here can be a rewarding decision.