Cabanillas Real Estate

Complete Guide to Buying a House in Estepona

comprar casa en estepona

If you’re thinking about purchasing a property in Estepona, let us tell you that it’s a great idea and a unique opportunity. With its privileged climate, stunning landscapes, and exceptional quality of life, this Mediterranean gem has become a sought-after destination for both those looking for a permanent residence and those seeking a second home.

We’ll explain the benefits of choosing Estepona as your new home and how to make the best decision when investing in this vibrant coastal city.

What You Should Know Before Buying a House in Estepona

Buying a house is one of the most important decisions you’ll make in your life, and if you’ve set your sights on Estepona, you’ve chosen a wonderful place! However, there are factors you should consider to make the process smoother and more satisfying.

Set Your Budget

The first thing you need to do is establish a clear and concise budget. Here are some key points to consider:

  • Notary fees: A notary is essential to formalize the purchase, and their fees may vary.
  • Taxes: Depending on whether you’re buying a new or second-hand property, you’ll need to pay either the Property Transfer Tax (ITP) or VAT. Additionally, don’t forget the Stamp Duty (AJD).
  • Registration fees: To have the property registered in your name, you must file it with the Land Registry.
  • Agency commissions: If you choose to work with a real estate agency—which is advisable, as they will guide and support you throughout the process—be sure to account for their fees.
  • Mortgage costs: If you require financing, consider expenses such as opening fees and property valuation costs.

Setting a realistic budget will help you focus on properties within your financial reach, avoiding unnecessary frustrations along the way.

Choose the Ideal Location

In addition to your budget, it’s important to consider factors related to the location of the property in Estepona:

  • Proximity to services: Think about your daily needs. Do you prefer to be close to supermarkets, schools, or public transport? This can make a big difference in your quality of life.
  • Environment and safety: Research the safety of the area and its social atmosphere. A friendly and secure neighborhood is essential, especially if you have a family.
  • Type of view: The Costa del Sol is famous for its stunning views, so explore different locations to choose the scenery that appeals most to you.
  • Accessibility: Easy access to main roads can be important for your daily commute or weekend getaways.

Desired Features in a Property in Estepona

Before you start searching for a property, make a list of the features that are essential for you. For example, the number of bedrooms and bathrooms, which will depend on family needs or the intended use of the property.

There are also desirable extras, such as a pool, terrace, or garden, depending on your preferences.

Types of Properties Available in Estepona

In Estepona, you can find various types of properties, such as apartments, villas, and townhouses. If you’re looking for something more urban, an apartment is ideal, while a villa offers more privacy and space. Townhouses combine the best of both worlds.

There are also rustic homes, typically located farther from urban areas, offering a quieter, countryside-style lifestyle. At the urban planning department of Cabanillas Real Estate, we can advise you on their legal status.

👉 Do you want to know what the real estate market trends in Costa del Sol are this year? Read our latest article!

Documentation and Legal Requirements for Buying a Property in Estepona

If you want to buy a home or property in Estepona, you’ll need to have specific documentation. Additionally, if you’re a foreigner, you’ll need to prepare even more paperwork. Here’s what you need to know:

  • NIE (Foreigner Identification Number): This is essential for any legal procedure in Spain. Foreign buyers must obtain an NIE, which allows them to sign contracts, open bank accounts, and carry out transactions. This process can be done at the Police Station or the Spanish Consulate in their home country.
  • Deposit Agreement (Contrato de Arras): This is a preliminary agreement signed between the buyer and seller. The buyer pays a deposit—usually 10% of the total price—as a commitment to purchase. This amount is deducted from the final price. The contract must specify the purchase conditions and the date for signing the title deed.
  • Property Deeds: Once the purchase is agreed upon, the next step is signing the deeds before a notary. This legal document certifies the transfer of ownership from the seller to the buyer. Any outstanding debts or charges on the property must be cleared before signing.
  • Personal Documentation: Buyers must present identification documents, such as a passport or national ID. Foreign buyers must also provide their NIE.
  • Energy Efficiency Certificate: This mandatory certificate indicates the property’s energy efficiency, which affects energy consumption and costs.
  • Latest IBI Receipts (Property Tax): The seller must provide these receipts to prove that there are no outstanding debts on the property.

How Does the Legal Process Work for Foreign Buyers?

If you’re a foreign buyer, you’ll need to follow some additional steps, although many are similar to the standard process. First, you must obtain the NIE, as previously explained—this is essential for any foreigner. Next, you can begin searching for a property, and once you’ve made a decision, you’ll sign the Deposit Agreement (Contrato de Arras) and pay an initial deposit, usually 10% of the total price.

Before signing the title deeds, it’s advisable to conduct a thorough property review to ensure there are no outstanding debts. At Cabanillas Real Estate, we assist with this process, but you can also hire a specialized lawyer for additional security.

Finally, once the deeds are signed, you’ll receive the keys to your new home. Having proper legal guidance is crucial, as the process may vary depending on your nationality and specific circumstances.

Taxes and Expenses When Buying a House in Estepona

When purchasing a property in Estepona, there are several taxes and expenses you should consider. Below are the most relevant:

  • Property Transfer Tax (ITP): This tax applies to the purchase of second-hand homes and varies by region. In Andalusia, the general rate is 7%, depending on the property’s price. It is reduced to 6% for primary residences valued at €150,000 or less and 3.5% for transactions promoting social housing policies, provided certain requirements are met.
  • VAT (Value Added Tax): This applies to the purchase of new homes and is set at 10% of the property’s price.
  • Notary Fees: Notary costs are based on the property price and usually range between 0.5% and 1% of the home’s value.
  • Registration Fees: Registering the property in the Land Registry also incurs a cost, typically between 0.2% and 0.5% of the purchase price.
  • Stamp Duty (AJD – Impuesto de Actos Jurídicos Documentados): This tax applies to the mortgage deed if the purchase is financed, generally around 1.5% of the mortgage amount.

Example of Associated Costs and Expenses

Here’s a practical example with numbers to help you understand the approximate costs involved. If you purchase a property in Estepona valued at €100,000, your expenses might be as follows:

  • ITP (7%): €7,000
  • Notary Fees (10%): €1000
  • Registration Fees (0.2% – 0.5%): €200 – €500
  • Stamp Duty (AJD – 1.5% on the mortgage, if applicable): €1,500 (depends on the mortgage amount)

How Much Money Do You Need to Save to Buy a House?

This is probably the million-dollar question. If you’re planning to buy a home or property in Estepona, you must consider several key factors. The first is the down payment, also known as the initial deposit.

It’s generally recommended to have at least 20% of the property’s price as a down payment, although in some cases, lower percentages may be available. For example, for a €100,000 home, this would mean €20,000.

Another crucial factor is additional expenses, including taxes and associated costs, which can add up significantly. Based on the previous example, for a €100,000 property, you might need around €12,600 in extra costs.

Finally, but just as important, you should have a contingency fund—extra money set aside for unexpected expenses, such as repairs or unforeseen costs. A suggested amount could be €5,000.

How to Find Ideal Properties in Estepona

Finding your ideal property in Estepona can be an exciting experience, but it can also feel overwhelming if you don’t know where to start. Don’t worry! Here are some strategies and tips to help you through the process:

Online Real Estate Portals

The most accessible way to begin your search is through online real estate portals like Idealista, Fotocasa, and Habitaclia. These platforms allow you to filter your search by price, location, property type, and specific features. This tool gives you a broad view of the market and lets you compare different options from the comfort of your home.

Real Estate Agencies

Another highly effective method is seeking professional guidance from real estate agencies in Estepona. At Cabanillas Real Estate, a real estate agency since 1959, we specialize in properties in Estepona and the Costa del Sol. We offer a wide selection of properties tailored to your needs. Our experienced agents provide valuable local market insights to help you find the perfect home.

Physical Visits

Once you have a shortlist of potential properties, it’s advisable to schedule physical visits. This allows you to see the property in person and evaluate the surroundings, community, and nearby amenities. Online photos may not always accurately reflect the real condition of the property.

Social Media and Local Groups

Social media platforms, such as Facebook, can be useful for finding buying and selling groups in specific areas. Joining these groups can help you discover opportunities before they are publicly listed on traditional portals. You can also check out our latest listings on Instagram.

Assessing the Property’s Condition and Future Prospects

When visiting properties, it’s essential to evaluate their current state and consider their future condition—how the property will hold up in 10, 20, or even 30 years. Here are some key aspects to assess:

Structural Condition

The structural integrity of the property is a crucial factor. Look for signs of dampness, cracks in walls, and plumbing issues. A thorough inspection can help you avoid unpleasant surprises down the line.

Quality of Installations

Check the condition and quality of the electrical systems, heating, and air conditioning. Ask about the age of these systems and whether they have been regularly maintained.

Renovation Potential

Consider whether the property has room for improvements or expansions. If you’re open to renovations, evaluate whether the changes you want to make are feasible and if they will increase the property’s value in the long run.

Surroundings and Market Value

Research the area and look into future urban development plans, housing demand, and access to services such as schools, hospitals, and public transport. This will give you an idea of how the property’s value might appreciate over time.

Common Mistakes When Buying Your First Property and How to Avoid Them

Buying a property can be a stressful process, especially if it’s your first time. That’s why we’re sharing a list of common mistakes and how you can avoid them:

  • Not Planning for Expenses: Many buyers underestimate the costs associated with purchasing a home. To avoid this, create a detailed budget that includes all expenses (taxes, notary fees, registration, renovations, etc.) and ensure you have a contingency fund.
  • Not Checking the Condition of the Property: It’s common for buyers to fall in love with a property and overlook its actual condition. This can happen due to its exterior appearance or ideal location. To prevent this, carefully inspect the place or hire a professional home inspector. This will help you identify hidden issues that could be costly in the long run.
  • Not Consulting with Experts: Some buyers try to handle the entire process on their own, which can lead to poor decisions. The solution is simple: hire real estate agents and/or lawyers experienced in this field. They can guide you through the legal and financial aspects.
  • Ignoring the Location: This is undoubtedly one of the most important factors when buying a home, yet many buyers don’t give it enough attention. Research the area where you plan to buy. Consider factors such as access to services, school quality, and neighborhood safety.
  • Not Thinking Long-Term: Some buyers focus only on their current needs and fail to consider their future situation. To avoid this, think about what you want to achieve with the property and whether it meets those goals. Are you planning to start a family? Work from home? Make sure the property suits your future needs.

Buy Your Home in Estepona Safely with Cabanillas Real Estate!

After going through all this information, it’s clear that buying a home in Estepona is more than just an investment—it’s an opportunity to enhance your quality of life in a privileged setting. From its stunning beaches to its Andalusian charm, Estepona has everything you need to be happy. However, making informed decisions and having expert support is essential to ensuring a successful purchase.

If you’re looking for professional assistance, contact us at Cabanillas Real Estate. We’re here to guide you every step of the way, offering expert and personalized advice.

You can find us at Avenida España 90, Estepona, Málaga. We’re also on social media (Facebook and Instagram), and you can reach us by WhatsApp +34 667 155 033.

Don’t miss the chance to find your ideal home in Estepona! Contact us today and let us help you make your dreams come true.

Leave a Reply