Buyers guide

Buyer’s guide, everything you need to know to make your investment in Marbella a success.

Thinking of buying a luxury property in Marbella? Pure Living Properties has put together a guide to answer the main questions buyers have.

Why is it so profitable to invest in Marbella?

Marbella, and the Golden Triangle in general, is a privileged destination, with over 300 days of sunshine a year, spectacular beaches, high security standards, a wide range of exclusive properties and a unique lifestyle with a cosmopolitan and ever-growing offer, making it one of the most sought-after residential locations in the world.

A growing market

Far from reaching its peak, the high-end real estate market continues to grow and the outlook is very optimistic with prices set to remain buoyant, new markets and luxury and super-luxury supply on the rise.

• Increased Demand: Demand for luxury property has increased by 12% in 2024 compared to the previous year.
• Price Increase: Prices have risen by 8%, with the average price per square metre reaching €6,500, an amount that soars in the most exclusive properties and in the most sought-after locations.
• Stability in Demand: Demand is expected to remain stable, with a slight increase due to growing interest from large investors to develop major projects in Marbella.

What should I do before making an investment?

The first step in the process of buying a high quality property is to go to an expert real estate agency with extensive experience in the premium market. Pure Living Properties, with more than 15 years of experience in Marbella, is the company of reference for the most exclusive segment.

Once you have selected your agency, the steps to prepare your purchase will be as follows:

Market research

Before beginning the buying process, it is essential to conduct thorough research into the luxury real estate market in Marbella. This includes analysing current trends, knowing the most exclusive areas and understanding the price range of luxury properties in order to avoid scams.

Key aspects

You should take into account some market trends such as the most sought-after areas (Puente Romano, Golden Mile, Sierra Blanca or La Zagaleta) and the most sought-after properties (modern, sustainable and technologically advanced villas).

Determining the budget

Defining a clear budget is essential. Consider all associated costs, including the price of the property, taxes, legal fees, and maintenance costs. It is advisable to have a financial advisor to help you manage your investment capacity.

Financial requirements

To facilitate the purchase of a property in Marbella, it is important to prepare your finances properly. This includes obtaining a Foreigner Identification Number (NIE), opening a bank account in Spain, and having the necessary funds available to cover upfront and closing costs.

At Pure Living Properties, we provide you with personalised advice to help you meet all these requirements and find the property of your dreams in Marbella.

Is it necessary to have a real estate agency with expertise in the luxury market?

Enlisting the services of a company that specialises in the Marbella luxury market, such as Pure Living Properties, is crucial to ensuring a successful buying experience. The high-end market is complex, and an experienced and knowledgeable agent will provide you with access to a catalogue of exclusive properties and advise you throughout the process.

Advantages of having an agency specialised in luxury:

• Extensive market knowledge: An experienced agent has a detailed understanding of market trends and in-demand areas.
• Access to exclusive properties: Well-connected agents can offer you access to properties that are not publicly listed.
• Efficient negotiation: Our team of experts will negotiate on your behalf to obtain the best terms and guide you through the legal and administrative process efficiently.

Criteria for choosing the right agency

Experience and reputation

Research the agency’s track record, review testimonials from past clients and verify its reputation in the market.

Knowledge of the luxury market

Make sure your chosen company has specific expertise in the Marbella luxury market and is up to date with the latest trends.

Networking

A good agent should have a wide network of contacts, including other agents, developers and landlords.

Transparency and ethics

Look for an agent who is transparent in their communications and has a reputation for acting with integrity.

Personalised service

The agent should offer a service tailored to your specific needs and preferences, providing a personalised approach.

What aspects should I take into account when looking for my luxury property?

Before starting your search, it is crucial to clearly define your needs and preferences. This includes the type of property (villa, flat, finca), the size, the architectural style, and the specific features you desire, such as sea views, proximity to amenities, gym, wellness area, etcetera.

These are the main steps you should follow in the search process:

List of properties

Create a list of must-have and desirable features for your property.

Use of technology

Technology has revolutionised the way we search for property. Take advantage of the digital tools available to make your search more efficient and effective. Virtual tours, online platforms and interactive maps are some of the most commonly used technological tools.

Visiting properties

Once you have identified a few properties of interest, it’s time to schedule in-person viewings. This will allow you to personally assess the condition of the property, its surroundings and other important factors.

Tips for visitors

• Preparation: Keep a checklist of your requirements to make sure you don’t overlook any important details.
• Photographs and notes: Take photographs and notes during visits so that you can compare them later.
• Ask questions of the agent: Take advantage of the visit to ask the agent detailed questions about the property, the neighbourhood and any other aspect that you find interesting and relevant to determine your decision.

What legal and financial aspects should I take into account when buying a luxury property?

Obtaining the Foreigner Identification Number (NIE).

The NIE is essential for any financial transaction in Spain. This unique number is required for the purchase of a property and other legal formalities.

Steps to obtain the NIE

• Application in Spain: Apply at a police station or at a Foreigners’ Office.
• Application from abroad: Apply through the Spanish consulate in your country.
• Necessary documentation: Passport, application form, and proof of the need for the NIE (purchase of property, opening a bank account).
• Opening a bank account in Spain: Opening a bank account in Spain is an important step to manage payments related to the purchase of the property, as well as for the payment of services and other current expenses.

Requirements for opening a bank account

• Identification: Passport or NIE.
• Proof of Address: A document that proves your address, such as a utility bill.
• Bank reference: Some institutions may ask for a reference from your current bank.

Do I need to hire a real estate lawyer to buy a luxury home?

It is highly advisable to have a lawyer to guide you through the purchase process, ensuring that all legal aspects are handled correctly.

These are the main aspects that a specialist lawyer will be able to help you with:

• Review of documentation: Verification of title deeds, charges and encumbrances.
• Contracts and negotiations: Advice on drafting and reviewing purchase contracts.
• Closing assistance: Assistance with the signing of the purchase contract and registration of the property.

What steps should I follow in the process of buying a luxury home?

The process of buying a luxury property in Marbella requires careful planning and the assistance of experienced professionals.
At Pure Living Properties, we ensure that every step is handled with the utmost efficiency and professionalism, guaranteeing a smooth and satisfying buying experience. Once you have your trusted real estate agency and the advice of an expert lawyer and have selected the property you want to buy, here are the steps you need to follow:

Submission of tenders

Once the desired property has been selected, the next step is to submit a formal offer. This offer should be strategic and well-founded, taking into account the market value and the specific characteristics of the property.

Steps to submit an offer:

• Property evaluation: Analyse recent comparables and consult with your agent to determine a fair offer.
• Written offer: Write a formal offer that includes the proposed price, terms of the offer and any special requests.
• Earnest money deposit: A deposit of between 5% and 10% of the purchase price is often required and will be held in escrow until completion of the process.

Negotiation and preliminary agreements

After the offer is submitted, there may be a negotiation period where the buyer and seller adjust the terms to reach a mutually acceptable agreement.

Key elements in negotiation:

• Price: There may be several counter-offers until both parties reach an agreement.
• Conditions: Make sure that all important conditions, such as inspections and deadlines, are clearly specified.
• Flexibility: Be flexible and willing to compromise on certain aspects in order to reach an agreement.

Signing of the deposit contract

The earnest money contract is a preliminary agreement that formalises the intention to purchase and sets out the terms and conditions under which the transaction will be completed.

Details of the earnest money contract:

• Deposit payment: Normally, 10% of the purchase price is paid as a deposit.
• Terms and conditions: This contract should specify all agreed terms, including deadlines and any contingencies.
• Commitment to purchase: Both parties agree to complete the transaction, and the signing of the earnest money contract ensures that the property is taken off the market.

Signing of the purchase contract

The contract of sale is the final document that formalises the transfer of ownership from the seller to the buyer.

Process of form of the contract of sale:

• Notary: The signing takes place in front of a notary, who verifies the identity of the parties and ensures that all documents are in order.
• Payment of the Remaining Price: At this point, the remaining amount of the purchase price is paid.
• Transfer of Ownership: Once the contract is signed and the price is paid, ownership is legally transferred to the buyer.

What type of contract should I choose to buy a luxury property in Marbella?

Choosing the right type of contract depends on your specific circumstances and purchasing objectives. At Pure Living Properties, we offer you personalised advice to help you make the best decision, these are the main types of contract:

Deposit agreement

It is a preliminary agreement that involves the payment of a deposit (usually 10% of the purchase price) and ensures that both parties are committed to completing the transaction under the agreed terms.

Advantages

• Security for both parties. Protects both buyer and seller.
• Formal commitment. Sets clear terms and a deadline for the sale and purchase.

Lease-purchase contract

It allows the property to be rented with the option to buy it at a future date at a pre-agreed price.

Advantages

• Flexibility. Offers the possibility to try the property before buying.
• Accumulation of part of the rent. Part of the rent can be deducted from the purchase price.

Private purchase contract

A formal and complete contract detailing all the terms and conditions of the sale. Although it is not a public document, it is binding.

Advantages

• Specific details. Includes all agreed terms and is legally binding.
• Peace of mind. It provides legal certainty and clarity on the obligations of both parties.

What additional costs and taxes do I have to face if I want to buy a luxury property in Marbella?

When buying a luxury home in Marbella, it is important to consider additional costs beyond the purchase price. These costs may include:

Taxes

• Transfer Tax (Impuesto sobre Transmisiones Patrimoniales, ITP). This tax is levied on the purchase of second-hand properties and varies between 7% and 10% of the purchase price, depending on the value of the property and the specific region.
• VAT (Value Added Tax). This applies to new properties and is 10% of the purchase price.

Notary fees

Notary fees depend on the value of the property and can range from 0.5% to 1% of the purchase price. The notary is responsible for the signing of the title deeds and the verification of all legal documents.

Land Registry

The costs of registering the title deed at the Land Registry are usually approximately 0.5% of the purchase price.

Legal fees

It is advisable to hire a lawyer specialising in real estate. Legal fees are usually around 1% of the purchase price.

Property valuation

If you need financing, the bank will require an appraisal of the property. Appraisal costs vary, but are generally between 300 and 600 euros.

Annual taxes

In addition to the upfront costs, there are annual taxes that owners must pay:

• Real Estate Tax (IBI). This municipal tax is calculated according to the cadastral value of the property and varies according to the location and size of the property.
• Rubbish tax. The waste collection tax is also a municipal tax and varies according to location.
• Non-Resident Income Tax. If you are not a tax resident in Spain, you will have to pay a tax on the imputed income of your property.

At Pure Living Properties, we assist you in every step of the buying process, including financial planning and estimating all associated costs and taxes, so you can make informed decisions and enjoy a smooth buying experience.

What costs are to be borne by the buyer?

In our city, the buyer bears all the costs involved in a sale and purchase, notary fees and land registry fees, which are approximately Property Registry, which are approximately 3.000€ depending on the price of the property, as well as the lawyer’s fees (1% of the price of the property + VAT). ), and real estate agency fees. Except for the municipal surplus value and the seller’s lawyer.

What taxes does a homebuyer pay?

The seller must pay the Plusvalia Municipal, which is levied on the increase in the value of urban land.

The amount to be paid as Plusvalia Municipal depends on the cadastral value of the property, the municipality where it is located and the number of years it has been owned by the seller. You can calculate this amount in the simulator of the Junta de Andalucía.

What is the role of the notary in the purchase of a luxury property?

The notary plays a crucial role in the process of buying property in Spain. Their main functions are to guarantee the legality and security of the transaction and to authenticate official documents. Their main responsibilities are detailed below:

• Verification of identity and legal capacity. The notary verifies that all parties involved in the transaction have the legal capacity to buy or sell the property and that their identities are correct. This prevents fraud and ensures that the transaction is between legitimate parties.
• Review of documentation. The notary reviews all documents related to the purchase, including the title deeds, to ensure that there are no legal problems, liens or encumbrances that could affect the transaction. He also verifies that the associated taxes and fees have been paid.
• Authentication of the title deed. The escritura pública is the legal document that formalises the transfer of ownership. The notary supervises the signing of this document, ensuring that all parties understand their rights and obligations, and certifies its authenticity.
• Registration of the property. After the signing of the deed, the notary sends the document to the Land Registry to formalise the change of ownership. This ensures that the transfer of ownership is officially registered and protects the rights of the new owner.

What is the process of signing in front of a notary?

• Preparation of the deed: The notary prepares the public deed on the basis of the purchase contract and other relevant documents.
  contract and other relevant documents.
• Signing of the deed: The parties meet at the notary’s office to sign the deed. The notary reads and explains the document, making sure that all parties understand the content and agree.
• Payment of the purchase price: During the signing, the buyer pays the remaining purchase price,
  usually by bank cheque or transfer.
• Registration: The notary is responsible for registering the deed in the Land Registry, thus completing the transfer process.

Can I still benefit from the Beckham Law when buying a luxury property in Marbella?

The Beckham Law, officially known as the Special Tax Regime for Workers Posted to Spanish Territory, offers tax benefits to foreign workers moving to Spain. This law allows beneficiaries to be taxed at a flat rate of 24% on their income up to €600,000 per year for the first six years of residence in Spain.

Current situation

• Government announcement. Spain’s central government has announced its intention to eliminate the Beckham Law. If this measure is implemented, new expatriates will not be able to benefit from the current tax incentives.
• Impact for Buyers. Current beneficiaries of the Beckham Law can continue to take advantage of its benefits for as long as it lasts. However, if you are planning to move and buy a property in Marbella, it is crucial to be aware of the legislative changes to assess how it will affect your tax situation.

Recommendation

• Legal and tax advice. Consult a tax advisor for up to date and personalised information on how possible changes to the Beckham Law could affect your decision to buy a luxury property in Marbella.

Stay informed about legislative changes to make sound financial and investment decisions. At Pure Living Properties, we provide you with comprehensive advice to make your home purchase in Marbella a safe and secure process.

How can the KYC and AML Regulations affect me when buying a luxury property in Marbella?

The KYC (Know Your Customer) and AML (Anti-Money Laundering) Regulations are designed to prevent money laundering and other financial crimes. When buying a luxury property in Marbella, you should take these aspects into account:

Identification and verification requirements

• KYC. Financial institutions and real estate agents must verify your identity and collect detailed personal information. This includes passport, proof of residence, and documents confirming the origin of funds.
• AML. You may be required to provide additional information about your financial activities and prove that the funds used for the purchase are legitimate.

Impact on the purchasing process

• Greater transparency. Some verification and transparency processes could lengthen the purchase process, which is why it is essential to have an expert real estate agency to guide you through the whole process.
• Additional documentation. Be prepared to submit a wide range of documents and answer questions about your finances.

Tips for KYC and AML compliance

• Complete documentation. Make sure you have all the necessary documents in order before you start the purchase.
• Professional advice. Hire a real estate lawyer and financial advisor to guide you through the requirements and ensure compliance with all regulations.

What should I do after the purchase process?

Registration in the land register

Once the public deed has been signed before a notary, the next step is to register the property in the Land Registry. This process is essential to formalise the change of ownership and guarantee the legal protection of the new owner’s rights.

Steps for registration

• Delivery of Documents: The notary will send the signed deed to the relevant Land Registry.
• Review and Validation: The registrar will review the documents to ensure that they comply with all legal and fiscal requirements.
• Formal Registration: Once approved, the property is formally registered in the name of the new owner.

Transfer of Services

It is important to transfer all services and contracts associated with the property to the new owner. This includes water, electricity, gas, telecommunications and any other contracted services.

Steps for the transfer of services

• Notification to Providers. Contact service providers to inform them of the change of ownership.
• Sign new contracts. Sign new contracts or update existing contracts in the name of the new owner.
• Payment of outstanding invoices. Ensure that all outstanding invoices are paid and that there are no debts associated with the services.

What insurance do I need for my luxury property?

Taking out property insurance is an essential protective measure. Insurance should cover structural damage, liability and, if necessary, contents and valuables.

Recommended types of insurance

• Home insurance. Covers damage to the structure of the property and its installations.
• Contents insurance. Protects personal property inside the property.
• Public liability insurance. Covers possible damages to third parties within the property.

I have already purchased. Can Pure Living Properties continue to assist me in the management of my property?

Pure Living Properties offers a comprehensive service that does not end with the purchase of a property, but extends throughout the management and maintenance of the property. We will help you with everything you need to ensure that your ownership experience is exceptional.

These are some of the additional services that Pure Living Properties offers after purchasing a luxury property in Marbella:

Property Management

• Regular Maintenance. Regular maintenance programmes to ensure your property is always in perfect condition.
• Repairs and Renovations. Co-ordination of necessary repairs and renovation projects, ensuring the highest quality work is carried out.
• Gardening and swimming pool services. If required we can also manage the professional maintenance of your property’s gardens and swimming pool.

Rental Management

If you want to make the most of your investment by renting out your property for short or holiday stays, Pure Living Properties has an expert Rentals department that will take care of everything.

These are some of our services:

• Promotion and marketing. We take care of all the necessary steps to attract the most select tenants to your property.
• Tenant selection. Rigorous tenant selection process to guarantee the care of your property.
• Lease management. Handling of rental contracts, collection of rents and coordination of cleaning and maintenance services during the rental period.