Buying and Selling homes in Spain

Our office is located in Pueblo Nuevo de Guadiaro in the Sotogrande area. At Sotogrande Realty, we offer a private and personalised approach to luxury property across southern Spain’s most exclusive addresses. From elegant villas to modern penthouses, our curated portfolio reflects refinement, trust, and discretion.

With deep local expertise and absolute confidentiality, we guide our clients through every stage of buying or selling — creating seamless, rewarding experiences built on professionalism and integrity.

Informed Choices with those Property Bargains in Andalusia.

Most people do not buy and sell properties many times in their lives and it can be a little overwhelming especially when so much money is involved.  We are an agency in Andalusia and different autonomous regions have slightly different taxes but all require 3 main things: a foreigner’s tax number, called an NIE number, Title Deeds signed before a Notary and Land Registry of the property purchase.

An NIE number is something you get from the Police Station or immigration department (extranjeria). Here are a couple of examples of how to fill the form out and each line translated. The reason for needing an NIE must also be stated. Be advised, there are long delays in getting appointments in both La Linea de la Concepcion and Algeciras. The good news is that almost all lawyers have excellent business relationships with the Immigration Office for issuing NIEs and will take all stress out of this by getting them for you; something we highly recommend. Although, if you fancy the challenge, you need to attend, submit paperwork and the small fee – a tax – then either go back on another day and pick up the tax number or wait a short while as it is prepared in front of you. This process is determined by the office itself.

English instructions how to fill out NIE form

NIE form translated

Title Deed Price and Amount Paid

There was a time when properties were sold for two different prices, coyly known as ‘A’ and ‘B’ monies. The ‘A’ price was on the Title Deeds and the ‘B’ was cash in hand counted with spit dampened fingers far from the Notary walls. Even today the Spanish tax office apparently turns a blind eye on a 15 – 20% difference plus or minus from the normal market price. Don’t be tempted though. In general, they don’t trust you and suspect something is afoot if you get too much of a good deal or agree to a bad bargain on your part. Buyers will end up paying tax on the amount the government thinks the property was really sold for, the imputed amount. The only way to avoid it is to get a property valuation done and take your claim to court. Costly and time consuming if you lose.

What is an Agent?

An agent is just that, an intermediary acting on behalf of another. We form bridges between both parties, are trusted by both and can close to the satisfaction of both Buyer and Seller. Meanwhile, once the deal is agreed we liaise with banks, town halls, lawyers, the chosen notary, land registry, the tax office and most crucially with the individuals or representatives themselves. Properties over a million euros frequently are bought in the name of a Spanish Limited Company. 

Buying & Selling Properties in Andalusia.

If the house you want to buy is not brand new; has had others living there already, it is referred to as a Resale property.

Buying: Executive Overview of Resales

Your lawyer needs to check the following documentation as part of their due diligence:

• Title Deeds. Make sure the person selling the property really is the owner or authorised to sell. (We check this as part of our general due diligence when we list a property).
• Ownership and status of housing charges. (Simple Note of the Property Registry). For this they need to ask for ‘Datos Registrales’ which give ‘Finca, Tomo, Libro & Inscripción’ stating what the property registration number is and where it is filed – both literally and in which district. This information is on the Title Deeds or a copy of a ‘Nota Simple’
• Last annual IBI receipt (Council Tax or Urban Tax, Impuestos Bienes Inmuebles).
• Community of Owners’ receipts proving that the seller is up to date with payments of shared community expenses. (It’s a proprietor owned management company.)
• Latest receipts of utilities: water, electricity, gas, etc.
• Completion on Property. If the conveyance follows the normal convention the  Buyer pays for the Title Deed copies, registration fees and, as appropriate, VAT or Property Transfer Tax. 
• The Seller needs to make sure they have a certificate of the energy value which they hand to the notary before sale.

The Buyer should allow approx. 12% – 15% on top for costs. You pay Stamp Duty, Transmission Taxes, Notary Fees and Land Registry Fees. Plus, lawyer’s fees should you decide to instruct one. (It is not obligatory but recommended.) 

Selling: Executive Overview of Resales

Property Sellers are responsible for:

• Certificate of Energy Rating. ‘Calificación Energética’. Drawn up by an architect evaluating the energy consumption of the dwelling. In Andalusia, almost all resale properties rate as Grade E, with Grade A being the highest, it may not be perfect, but it is normal.
• Town Hall Capital Gains Tax – Incremento del Valor de los Terrenos de Naturaleza Urbana (IVTNU), more commonly known as plusvalía municipal. Anyone selling at a loss does not need to pay this.
• Proving Tax Residency. If resident for tax purposes in Spain, the Seller must provide a certificate from the tax office.
• If the Seller does not have this tax certificate, there is a 3% withholding of the sale price. This 3% is sent to the tax office on the Sellers behalf by the Buyer who then only needs to pay across to the Seller 97% 
• The non resident Seller then claims back this 3% if they sold at a loss or there was no capital gain.

Buying: Executive Overview of New Builds or Off Plan

Buying Off Plan or New Builds confirm the following:

• Works Licence in place
• Bank Guarantee to protect in case developer goes belly up
• Occupancy Licence issued before completion
• Building Specifications have been adhered to
• Stage Payments where appropriate coincide with actual completion of construction stage as described
• Snagging List done and signed by both parties
• Utilities supply and connection paperwork formalised (boletines de enganche)
• Value Added Tax is 10%

Other than that, enjoy your home in the sun, next to a pool in summer and a wood burning stove in winter.

There’s never been a better time this decade to move home or shuffle portfolios.

About Sotogrande Realty

With more than 20 years of experience in the Andalusian real estate market, Sotogrande Realty specialises in luxury property, conveyancing guidance, and personalised client support throughout the entire buying and selling process. Our team works with absolute discretion, professionalism, and a deep understanding of local regulations, ensuring that every client makes well-informed decisions backed by trusted expertise.