Homerun Brokers Buying Guide

30th Oct 2025 · by Roger Widén · 19 min. read

At Homerun Brokers, our mission is to help you find the perfect home that matches your lifestyle, preferences, and financial goals. With our buying guide and with years of expertise and a passion for excellence, we go beyond offering a diverse portfolio of listings. Through our extensive network of trusted brokers and industry professionals, we ensure access to every property available on the market.

• Table of contents
• What Do You Need to Know as a Foreigner Buying Property in Marbella?
• What's a NIE Number and Why Do I Need It?
• Financing Options and Advice
• Understanding the Purchase Process
• What Are The Taxes and Fees on Property Purchase in Andalucia?
• What Are The Taxes on Property Ownership In Andalucia?
• What Is a NIE and Why Do You Need It?
• Who Needs an NIE?
• How to Apply for an NIE Number
• Required Documents for NIE Application
• How Long Does It Take to Receive an NIE?
• Using Your NIE Number
• Renewing or Modifying Your NIE
• Common Issues and How to Avoid Delays
• Why You Should Get A NIE
• Are You Ready To Buy A Property In Marbella?

You don’t have to navigate this journey alone. Our personalised approach means your dedicated broker will be your trusted partner throughout the entire process—curating tailored property searches, arranging viewings, and managing all the legal and logistical details. We aim to make your home-buying experience seamless, stress-free, and enjoyable.

Let us guide you through every step, including understanding the buying process and navigating applicable taxes. Your dream home awaits—let us help you find it.

A contemporary Mediterranean masterpiece, Villa Malibu offers privacy, style, and exceptional amenities in the heart of Nueva Andalucía.

Purchasing property in a foreign country can feel daunting, but our expert team is here to guide you through every step of the process. Here’s what you need to know:

This is an all-purpose personal identification number which is also your assigned tax code as a foreigner with activity in Spain. This is the first thing you’ll need to get for official dealings with the Spanish authorities such as: property purchase, tax payments, opening a business in Spain or social security activity. Your lawyer will assist you in getting the NIE number needed to complete the property purchase, which is why we always recommend setting up a Power of Attorney with them so they can get this and sign all other documents for the property purchase on your behalf where needed. We have relationships with experienced lawyers we are happy to put you in contact with.

Learn more about the NIE process here.

For many buyers, obtaining a mortgage is an important step in the property purchase process. We recommend securing financing before starting the buying process. Your bank can issue a loan guarantee, stating how much financing they will grant you on your purchase ahead of time. The benefits of pre-approval is that sellers are more likely to take your offer seriously if you have financing pre-approved. It shows you're a serious buyer who has the means to complete the transaction. With financing already in place, you can move quickly when you find the right property. In a competitive market, this can be the difference between securing your dream home or losing it to another buyer. Pre-approval gives you a clear idea of your borrowing capacity, so you can focus on properties within your budget and avoid wasting time on those out of reach.

• What to Expect: Non-residents in Spain can typically finance up to 70% of the property’s value. Banks will require documentation such as proof of income, tax returns, and credit history.

Explore our mortgage guide for non-residents.

The buying process differs slightly depending on whether you are purchasing as an investor or for private use. At the end of this buying guide we will go over how taxes differ depending on if you're an investor or a private buyer. At Homerun Brokers, we believe:

• Investors: Lead with your head to ensure the best returns.
• Private Buyers: Lead with your heart to find your dream home.

Here’s an overview of the key steps:

Reservation Contract

The reservation contract is signed when placing a reservation fee on your chosen property. The fee is subject to the purchase price, but generally around 1% of the total price. The transfer will be made through the lawyer’s client account, and this will ensure that the property is taken off the market for a set amount of time, often around 14 days. Your legal representative and agent will be monitoring the process all the way through. The reservation contract is not legally binding, so there is minimal or no financial penalty for backing out, though the reservation fee is often non-refundable.

• Secure your chosen property with a reservation fee, typically 1% of the purchase price.
• This ensures the property is taken off the market. The fee is held in escrow by your lawyer.

Due Diligence

Due diligence is done after signing of the reservation contract. Some of the points to be checked include: the current legal status of your property, making sure the property is free of debt, ensuring that there are no outstanding debts on the utilities and the existence of planning permission if you are planning an immediate extension or modifications to the property.

• Conducted by your lawyer over a set period of time, usually around 14 days.
• Includes verifying legal status, debts, utilities, and planning permissions, ensuring the property is free from encumbrances.

Private Purchase Contract (PPC)

If you will be taking out mortgage financing on your purchase - or for a variety of other reasons - the signing of the title deed won’t be immediate. In most cases buyers will sign an interim agreement - the private purchase contract - after the completion of due diligence. Generally, the payment at this stage is 10% of the purchase price minus the reservation deposit. This contract is legally binding. If the buyer withdraws, they lose the deposit. If the seller withdraws, they must return double the deposit.

• Signed after due diligence is completed.
• Typically involves a 10% payment (minus the reservation fee).

Title Deed and Land Registry

If you don’t need financing and would like to complete your purchase directly after the due diligence is completed, there is no need to sign and pay a private purchase contract. In this case, you go directly to the title deed stage (Escritura) and pay the full purchase price minus the reservation deposit. 

Notary and registry fees are between €500 and €3000 depending on the property’s value and complexity of the transaction. This is the stage when the outstanding balance of the property will be paid, and you will receive your Nota Simple and title deed making you the new owner of your property. As soon as you receive the title deed, your details will be sent to the Land Registry and the utility companies informed of the name change. 

• Final stage where ownership is transferred.
• Notary and registry fees are paid.

Learn more about the buying process here.

Understanding the taxes and fees associated with buying property in Spain is essential for a smooth and informed purchase. From transfer taxes and VAT to annual property levies like IBI and Wealth Tax, the obligations vary based on the type of property, your residency status, and the region. This section provides a clear breakdown of what to expect, ensuring you’re prepared for every stage of the process.

The taxes you pay will depend on whether you’re purchasing a new property or a resale.

"Working with Homerun Brokers made the entire buying process feel effortless. Their team guided me through every step with clarity and confidence, making purchasing a home in Marbella not only smooth but genuinely enjoyable." – Buyer

Property Transfer Tax (ITP)

This tax applies to the transfer of second-hand properties. Rates range from 6% to 10%, depending on the region. In Andalusia, the general rate is 7%, but there are reduced rates for specific circumstances:

6%: If the property value is under €150,000 and intended as your primary residence.

3.5%: For buyers meeting certain criteria, such as:

• Being under 35 years old, a victim of domestic violence or terrorism, or buying in a depopulated area.

• Having a disability of 33% or more or being part of a large family, with the property value up to €250,000.

2%: For properties purchased for resale by businesses or specific public sector entities. This lower tax rate is designed to encourage investment and stimulate the real estate market. To qualify for the reduced 2% ITP rate in Andalucía, the buyer must be a registered property reseller, purchase the property for resale, and resell it within five years without personal or unrelated business use. Failure to meet these criteria results in retroactive application of the standard ITP rate, along with potential penalties and interest.

Capital Gains Tax (Plusvalía Municipal)

This tax is based on the increase in the land’s cadastral value over time, not the property itself. Although the seller typically pays it, it’s wise to clarify during negotiations.

VAT (IVA) and Stamp Duty (AJD)

When buying directly from a developer, you’ll pay 10% VAT on the purchase price. Additionally, Stamp Duty applies, which ranges from 1% to 1.5%, depending on the region. The Stamp Duty rate is 1.2% in Andalusia.

The Role of the Cadastral Value

The cadastral value, assigned by the government, is used to calculate many taxes, including IBI and Wealth Tax. It’s typically lower than market value but can be appealed if you feel it’s too high.

Once you own a property in Spain, several annual taxes apply, regardless of whether you are a resident or non-resident. 

Property Ownership Tax (IBI)

Similar to council tax, this is calculated based on the property’s cadastral value. Rates range from 0.4% to 1.1%, depending on the municipality. IBI is paid annually, often in instalments.

Non-resident Income Tax (IRNR)

Non-residents who rent out property must pay tax on rental income:

- 24% for non-EU residents (no deductions).

- 19% for EU residents, Norway, and Iceland, with deductible expenses like repairs and maintenance.

Non-residents who do not rent their property still pay a tax based on imputed income:

- 1.1% or 2% of the cadastral value, depending on location.

Resident Income Tax (IRPF)

Residents are taxed on worldwide income, including rental income, at progressive rates (19%-47%). Deductible expenses for residents include mortgage interest and repairs.

Capital Gains Tax on Sales

Residents: Taxed at 19%-26%, with exemptions for those over 65 selling their primary residence.

Non-residents: Pay 24% (or 19% for EU residents) on gains from property sales.

Wealth Tax

In Andalusia, a subsidy effectively eliminates Wealth Tax on assets over €2M; however, reporting remains mandatory for compliance. At the national level, the Solidarity Tax applies to individuals with net wealth exceeding €3.7M.

Inheritance and Gift Tax

Rates depend on the relationship between the donor and recipient, with Andalusia offering significant reductions for close family members. Non-residents may also owe inheritance tax in their home country.

Explore more about taxes and legal requirements here.

"As a foreign buyer, I expected complications, but Homerun Brokers handled everything seamlessly. From NIE guidance to mortgage advice and legal coordination, they ensured I always felt supported and well informed." – Foreign Buyer

How to Obtain a NIE Number in Spain: A Complete Guide

When purchasing property or conducting any official business in Spain, one of the first legal requirements for foreign buyers is obtaining a Número de Identificación de Extranjeros (NIE). The NIE number is a unique tax identification number assigned to non-residents, necessary for any financial or legal transaction in the country, including buying property, paying taxes, securing a mortgage, or setting up utility accounts. Without an NIE, it’s impossible to complete these essential tasks.

• Table of contents
• What Do You Need to Know as a Foreigner Buying Property in Marbella?
• What's a NIE Number and Why Do I Need It?
• Financing Options and Advice
• Understanding the Purchase Process
• What Are The Taxes and Fees on Property Purchase in Andalucia?
• What Are The Taxes on Property Ownership In Andalucia?
• What Is a NIE and Why Do You Need It?
• Who Needs an NIE?
• How to Apply for an NIE Number
• Required Documents for NIE Application
• How Long Does It Take to Receive an NIE?
• Using Your NIE Number
• Renewing or Modifying Your NIE
• Common Issues and How to Avoid Delays
• Why You Should Get A NIE
• Are You Ready To Buy A Property In Marbella?

This guide will walk you through the process of obtaining an NIE number, explaining why it’s essential and outlining step-by-step procedures to secure this document, whether you’re already in Spain or applying from abroad.

The NIE (Número de Identificación de Extranjeros) is essentially a tax identification number for foreign nationals. Spanish citizens have a similar number called NIF (Número de Identificación Fiscal), which serves the same tax ID purpose. However, the NIE is specifically for foreigners residing in or conducting business in Spain. For the latest tax requirements associated with obtaining an NIE in Spain, refer to the official guidelines provided by the Spanish Tax Agency (Agencia Tributaria).

Why You Need an NIE:

• Purchasing Property: An NIE is mandatory to complete a real estate transaction in Spain.
• Tax Purposes: Required for paying taxes, including property tax, capital gains tax, and income tax.
• Mortgages: Banks require an NIE to grant a mortgage for property purchases.
• Setting up Utilities and Services: Needed to set up electricity, water, and other utilities if you plan to live in Spain.
• Opening a Bank Account: Most Spanish banks require an NIE for opening an account.
• Other Services: An NIE may also be required for other essential services, like registering a vehicle or enrolling in certain public or private services, such as schools or healthcare.

Even if you are not planning to live in Spain full-time, the NIE is essential for any property investment or legal transaction.

An NIE is required by any foreigner who intends to engage in financial or legal activities in Spain. This includes:

• Property Buyers: Whether for personal use or investment.
• Individuals Starting a Business: Entrepreneurs planning to set up a company or invest in a business.
• Students or Workers: Foreigners who plan to study or work in Spain for an extended period.
• Residents: Any foreigner looking to establish residency or long-term stay in Spain.

In short, if you plan to spend an extended period in Spain or make significant financial transactions, you will need an NIE.

1. Applying for an NIE in Spain

If you are already in Spain, you can apply for an NIE in person at designated Oficina de Extranjería (foreigners' offices) or local police stations. The official requirements for applying for an NIE number, including required documents and processing times, can be found on the Spanish Ministry of Interior’s website (Ministerio del Interior). Here’s the step-by-step process:

• Locate the Nearest Oficina de Extranjería: Find the nearest foreigners’ office or police station that processes NIE applications.
• Book an Appointment: In most regions, you’ll need to book an appointment online in advance via the Sede Electrónica website.
• Complete the EX-15 Form: This is the application form for obtaining an NIE number. It can be downloaded from the Ministry of the Interior's website.
• Submit the Required Documents: When you attend your appointment, bring the following:
  • Completed EX-15 application form.
  • A valid passport and photocopies of the main pages.
  • Proof of the reason for requesting the NIE (e.g., property purchase, employment contract).
  • Proof of payment of the NIE application fee (Modelo 790 form).
• Attend Your Appointment: Present your documents at the appointment and submit the application. The NIE number is typically issued within a few days to a few weeks, depending on the region.

2. Applying for an NIE via a Spanish Consulate

If you are not currently in Spain, you can apply for your NIE through a Spanish consulate in your home country. This method is ideal if you are planning a property purchase or investment before moving to Spain.

• Locate Your Nearest Spanish Consulate: Find the Spanish consulate nearest to your home or current location.
• Prepare the Documents: You’ll need the same documentation as if applying in Spain:
  • Completed EX-15 form.
  • Passport and copies.
  • Proof of the reason for requesting an NIE.
  • Application fee (payment methods vary by consulate).
• Submit Your Application: Some consulates allow you to submit documents by mail, while others require an in-person visit.
• Wait for Your NIE: The consulate will process your request and forward it to the relevant authorities in Spain. Processing times can vary, typically taking several weeks and sometimes up to two months. It’s advisable to check with your local consulate for specific timelines.

3. Appointing a Legal Representative to Obtain Your NIE

If you cannot apply in person or prefer not to, you can authorize a representative, such as a lawyer or gestor, to apply for your NIE on your behalf. Many foreign property buyers use this method to simplify the process.

• Power of Attorney: You will need to grant power of attorney (Poder Notarial) to your representative in Spain. This document must be signed and notarized, either in Spain or at a Spanish consulate abroad.
• Prepare Documentation: Your representative will submit the necessary forms and proof of identity, along with your power of attorney.
• Receive the NIE: Once issued, your representative can collect the NIE on your behalf and send it to you.

Regardless of the method you choose, these are the documents you need to apply for a NIE number in Spain:

• Completed EX-15 Form: The official NIE application form.
• Passport: Original passport and photocopies of the main identification pages.
• Proof of Purpose: Evidence showing why you need an NIE (e.g., property contract, job offer, or investment documentation).
• Application Fee: The NIE application fee is usually around €10-15, but this can vary slightly depending on the method and location. Payment is made through the Modelo 790 form at a bank.

Make sure all your documents are in order before applying to avoid delays.

The processing time for obtaining an NIE can vary depending on where and how you apply:

• In Spain: It can take anywhere from a few days to a few weeks, depending on the region and how busy the office is.
• Through a Spanish Consulate: The process can take several weeks, often up to two months, as the consulate forwards your documents to Spain for processing.
• Through a Representative: If you’ve appointed a representative, processing can take a few weeks depending on the efficiency of your representative and the relevant office.

Once issued, you will receive the NIE in person at the foreigners’ office, or through your representative or consulate.

After receiving your NIE, remember that this number is permanent and will remain the same for life. You will use it for various activities in Spain, including:

• Buying and selling property.
• Paying property taxes and other taxes.
• Applying for a mortgage or financing.
• Setting up utility contracts.
• Registering with local authorities if you decide to live in Spain full-time.

Your NIE will appear on all official documents related to taxes and legal matters in Spain.

Most NIE numbers do not expire; however, temporary NIEs may need to be renewed after a set period. To renew or modify an NIE, follow the same process outlined above, providing updated documentation if your circumstances have changed (e.g., a change in address or legal status).

While obtaining an NIE is relatively straightforward, delays can occur if documents are incomplete or improperly prepared. Here are tips to avoid common issues:

• Prepare documents carefully: Ensure your EX-15 form is completed correctly and that all documents, including proof of payment, are in order.
• Schedule appointments early: Offices can be busy, especially in popular regions, so booking an appointment in advance is crucial.
• Hire professional help: Hiring a lawyer or gestor who is familiar with the system can simplify and expedite the process.

Obtaining an NIE is a vital step for anyone looking to invest in property, set up a business, or live in Spain. While the process might seem daunting, with the right preparation and guidance, it can be handled smoothly. Whether you apply in person, through a consulate, or via a representative, securing your NIE number ensures that you can legally and efficiently conduct financial and legal affairs in Spain. By understanding the process and gathering the necessary documents ahead of time, you can obtain your NIE quickly and move forward with confidence.

Contact us and we will be happy to help you get the process started by putting you in contact with a lawyer.

Buying a property in Marbella is a big step, and at Homerun Brokers, we’re here to help you knock it out of the park. With our in-depth knowledge of the local market and a trusted network of top lawyers, mortgage brokers, and industry professionals, we provide everything you need to navigate the process confidently. From finding your dream home to maximizing a property’s investment potential, we’re here to guide you every step of the way. Contact us today and let’s start your journey towards scoring a homerun in Marbella’s property market!