Buying a home in Sotogrande: a step-by-step guide (including for non-residents)

Buying a home in Sotogrande is simpler than it looks, even from abroad. What makes the difference is knowing the order of the steps and having the numbers clear from the start. This is the route we follow with our clients.

1. NIE and bank account

Every buyer needs an NIE, the Spanish tax identification number for foreigners. It can be requested at a Spanish consulate or in Spain, and a lawyer can handle it with a power of attorney. With the NIE you open an account at a Spanish bank, from which the price, the taxes and, later, the household bills are paid.

2. Reservation and deposit contract

Once we have found the property, a small reservation fee takes it off the market for a few days. Then the deposit contract (contrato de arras) is signed, usually for 10% of the price. If the buyer pulls out, they lose that amount; if the seller withdraws, they must return it twice over.

3. Legal checks before signing

Between the deposit and completion, your lawyer checks that everything is in order: the Land Registry extract (ownership and charges), that there are no outstanding council tax (IBI) or community debts, the property’s licences and its energy certificate. In Sotogrande it is also worth checking the Entidad de Conservación fee, which maintains roads and common areas across much of the estate.

4. Signing before a notary

The sale is signed before a notary, in person or through a representative with power of attorney. The balance is paid that day and the keys are handed over. The deed is then registered at the Land Registry.

What it costs on top of the price

For a resale home in Andalusia you pay Transfer Tax (ITP) at a general rate of 7%, calculated on the higher of the deed price and the Land Registry’s reference value. For a new-build home bought from the developer you pay 10% VAT plus 1.2% Stamp Duty (AJD). Notary, registry, administration and legal fees come on top. As a guide, budget 10–12% on top of the price for a resale purchase.

If the seller is not resident in Spain, the buyer must withhold 3% of the price and pay it to the Spanish tax office on the seller’s behalf. Your lawyer handles this, but it is worth factoring into your payment plan.

After the purchase

Each year you pay IBI, community fees and, where applicable, the Entidad de Conservación fee. If you are not resident in Spain and do not let the property, you will also file Non-Resident Income Tax on the income the law attributes to you as an owner.

Every purchase has its own details, and the figures can vary with the type of property and the buyer’s circumstances. At Rob Laver we guide you through the whole process and put you in touch with trusted local lawyers and tax advisers.