Buying a Property in Estepona: A Step-by-Step Guide for Buyers

Buying a home on the Costa del Sol is an exciting process, but if it's your first time purchasing property in Spain, the paperwork and terminology can feel unfamiliar. At Future Homes, we guide buyers through every step, from the moment you fall in love with a property to the day you collect the keys. Here's what to expect, in the order it usually happens.

1. Finding the Property and Making an Offer

Once you've found "the one," your agent will present a formal offer to the seller on your behalf. Offers are usually made verbally or in writing through ourselves, and it's completely normal to negotiate on price, including the furniture, or the timeline for completion. Once both sides agree on the price and terms, the next step is to secure the property.

2. The Agency Reservation (Holding Deposit)

This is often the first formal step, and it can catch newcomers by surprise if they haven't bought in Spain before.

What it is: Once your offer is accepted, the agency will ask for a reservation deposit — typically €6,000, held for around two weeks. This is standard practice across Estepona and the wider Costa del Sol.

Why it exists: Paying this deposit takes the property off the market immediately, preventing the seller from accepting other offers while you carry out your initial checks and instruct a lawyer. In return, the seller commits to not negotiating with anyone else during this period.

What happens during the two weeks:

• You instruct an independent lawyer
• Your lawyer begins due diligence: checking the nota simple (land registry extract), confirming there are no outstanding debts, charges, or embargoes on the property, verifying the seller's ownership, and checking that the property matches its registered description (especially important for extensions, pools, or reformed spaces)
• Basic terms of the sale are agreed in principle, ready to be formalised in the next contract

What's "normal" to expect: The €6,000 figure is a general market standard in this area rather than a fixed legal amount — it can occasionally vary depending on the property price and agency — but €6,000 for two weeks is the typical benchmark buyers will encounter in Estepona. This amount is deducted from the total purchase price later; it is not an additional cost on top.

3. The Contrato de Arras (Private Purchase Contract)

If your lawyer's checks come back clean and both parties are happy to proceed, you move on to the contrato de arras — the private reservation contract between buyer and seller, and the most important document before completion.

What it is: A legally binding contract, typically drafted or reviewed by your lawyer, that commits both sides to the sale under agreed terms and a set limit completion date. At this stage, buyers pay a deposit of 10% of the purchase price (the amount already paid at reservation stage is deducted from this 10%).

What it covers:

• Final agreed purchase price
• Completion date (normally 6–8 weeks later, though this is negotiable)
• Legal details of the property, the sellers and buyers details and what's included (furniture, appliances, parking, storage)
• The consequences if either party pulls out

The key protection buyers should understand: Arras contracts in Spain carry a penalty clause that works both ways:

• If the buyer withdraws without valid reason, they forfeit the 10% deposit.
• If the seller withdraws, they must return double the deposit to the buyer.

This mutual penalty is what makes the arras contract such a strong commitment for both sides — it's designed to stop either party from getting cold feet or accepting a better offer elsewhere once terms are signed.

Between signing arras and completion, your lawyer will:

• Complete full legal due diligence (community fees up to date, IBI/property tax paid, any licences needed, etc)
• Help you obtain your NIE (foreigner's tax identification number) if you don't already have one — this is mandatory to buy property in Spain
• Assist with opening a Spanish bank account, if needed, for the completion payment and ongoing utility bills
• Arrange for the mortgage (if applicable) to be approved and ready in time for completion

4. Completion Day (La Escritura)

Completion takes place in front of a Spanish notary, where the escritura de compraventa (title deed) is signed by both buyer and seller (or their authorised representatives, if a power of attorney is used).

On this day:

• The remaining balance of the purchase price is paid, usually via bank transfer or banker's draft
• Both parties sign the escritura
• Keys are handed over
• Your lawyer arranges for the property to be registered in your name at the Land Registry and for utilities to be transferred into your name

5. Costs Buyers Should Budget For

On top of the purchase price, buyers should budget roughly 10–13% extra to cover:

• Transfer tax (ITP) on resale properties in Andalusia which is 7%, or VAT (10%) + Stamp Duty (AJD) on new-build properties
• Notary and Land Registry fees
• Legal fees (typically around 1% + VAT)
• Mortgage arrangement costs, if applicable

Plusvalía municipal (a local tax on land value increase) is normally paid by the seller, but this should always be confirmed in the contract terms.

A Typical Timeline

1) Offer accepted: Day 0
2) Agency reservation paid (€6,000): Day 0–1
3) Legal due diligence: Weeks 1–2
4) Contrato de arras signed (10% deposit): Around week 2
5) Further due diligence, NIE, financing: Weeks 2–8
6) Completion at notary: Weeks 6–8 (negotiable)

Our Advice to Buyers

Every purchase is a little different, and timelines can flex depending on financing, whether you're buying from a resident or non-resident seller, or if the property is newly built. What stays consistent is the structure: reservation, arras, completion — each step adding a legal layer of security for you as the buyer.

At Future Homes, we make it our priority to always check the paperwork of the properties we list, which are nearly all direct listings from the owners themselves. We work alongside independent lawyers and coordinate every stage of this process for our clients, so you always know what's happening and what's coming next. If you're thinking about buying in Estepona and want to understand your options, get in touch — we're happy to talk you through it before you commit to anything.