Step-by-step guide to buying property in Malaga

Buying property in Spain can seem daunting, especially for foreign buyers who are unfamiliar with local laws, taxes, and customs.

Malaga, with its sunny climate, vibrant culture and attractive coastal lifestyle, is a popular choice for international buyers.

While the process might feel complicated, understanding each step can make it much easier.

This step-by-step guide takes you through the key stages of buying property in Malaga, from deciding what you want to settling into your new home.

1. Set your budget and arrange financing

Before starting your property search, it’s essential to set a realistic budget. Many buyers focus only on the purchase price, but there are additional costs to consider:

• taxes
• notary fees
• lawyer fees
• community fees
• maintenance

READ MORE: Costs beyond the purchase price: Hidden expenses when buying in Malaga

Foreign buyers often require a mortgage to fund their purchase. Spanish banks have specific policies for non-residents, typically offering up to 70% of the property’s value (or 80-90% for residents).

2. Decide what type of property you want and where

The next step is to determine the type of property that suits your needs.

Malaga offers a wide range of options, from modern apartments in the city centre to traditional townhouses in historic neighbourhoods, and villas along the coast.

You should consider whether you want a property primarily for personal use, as a holiday home, or as an investment to rent out.

Location is equally important. Some buyers prefer the lively atmosphere of Malaga Centro, while others are drawn to quieter areas like Pedregalejo or El Limonar.

Take time to research local amenities, transport links, and the overall vibe of each neighbourhood. This will help you choose a property that fits both your lifestyle and your long-term plans.

READ MORE: The best neighbourhoods in Malaga for foreign buyers

3. Find a property

Once your preferences and budget are clear, it’s time to start looking for properties.

You can search through online real estate portals, local agents, property expos and recommendations from friends or expat communities.

A reliable local agent can be invaluable, helping you navigate the market and find properties that meet your criteria.

Visiting properties in person is strongly recommended. Photos online can be misleading, and seeing a property first-hand helps you assess its condition, location and surrounding area.

Serious buyers may also discover “off-market” opportunities through local contacts or agents.

4. Get a NIE (Número de Identificación de Extranjero)

Every foreign buyer must obtain a NIE before completing a property purchase. The NIE is a personal identification number required for legal and financial transactions in Spain, including property registration, taxes, and mortgage applications.

You can apply for a NIE at a Spanish police station with a foreigner’s department, or through a Spanish consulate in your home country. The process requires completing an application form, providing identification and paying a small fee.

Obtaining a NIE early ensures that all subsequent steps in the buying process proceed smoothly.

READ MORE: How to get a NIE in Malaga

5. Open a Spanish bank account

Opening a local bank account is an important step for foreign buyers. A Spanish bank account is often required to pay deposits, ongoing bills, mortgage repayments and taxes.

To open an account, banks usually ask for a passport, proof of address and a NIE (Número de Identificación de Extranjero).

Having a local account also makes transferring funds from your home country easier and can save money on currency conversion fees. Many international buyers choose banks that offer English-speaking services to simplify the process.

6. Make an offer and sign a reservation contract (arras)

When you find the right property, the next step is making an offer.

Negotiation practices in Spain can vary, but it’s common to start slightly below the asking price.

Once agreed, you will usually sign a reservation contract, known as a “contrato de arras,” and pay a deposit of around 10% of the property price.

This contract is legally binding in most cases, so it’s important to ensure the property has no outstanding debts, such as unpaid community fees or mortgages.

At this stage, your offer secures the property while due diligence checks are completed.

7. Conduct due diligence

Due diligence is essential for foreign buyers and should go hand in hand with a professional property survey (though not compulsory).

A lawyer or agent can verify that the property is free from legal issues, confirm ownership, check the land registry and ensure all planning permissions are in order. They can also guide you through contracts, taxes and other obligations.

At the same time, a property survey (known in Spain as a “tasación” or “informe técnico”) can reveal structural issues, water damage or other hidden problems, particularly in older or resale properties (banks will do one if you take out a mortgage with them). Surveyors will check foundations, plumbing, electrical systems and potential irregularities, giving you confidence that the investment is sound.

By combining legal checks with a thorough property survey, you can avoid costly mistakes and proceed with the purchase safely.

8. Sign the public deed of sale

If everything checks out, the sale is finalised at the notary, where you will sign the public deed of sale, known as the “escritura pública”.

The notary verifies your identity, confirms the details of the transaction and ensures the legal transfer of ownership.

At this stage, the remaining funds are paid, and additional costs like notary fees, stamp duty and registration fees are settled.

Once the deed is signed and registered, you officially own the property.

9. Register the property and pay taxes

After signing, the property must be registered at the local Land Registry (Registro de la Propiedad). This step ensures your ownership is legally recorded and protects your rights.

Depending on whether you bought a resale or a new build, you will also pay taxes.

Resale properties are subject to ITP (transfer tax), while new builds attract VAT.

Other ongoing costs include local property taxes, community fees, and utility bills.

10. Moving in or renting out

Once registered, you can move into your new property or prepare it for rental. Arranging utilities, internet and insurance should be among your first steps.

Settling into Malaga also means getting familiar with local services, shopping areas and the expat community. Taking time to enjoy your new surroundings can make the transition smoother and more enjoyable.

If you plan to rent out the property, it’s important to understand Spanish rental laws and tax obligations.

READ MORE: Renting vs buying in Malaga: which one makes more sense?

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Get your dream house now!

Purchasing a property in Malaga as a foreigner is an exciting opportunity, but careful planning is essential to avoid pitfalls.

By following each step—from selecting the right property and arranging financing to completing legal checks, obtaining your NIE, and understanding taxes and residency—you can make the process smooth and stress-free.

For personalised advice and up-to-date guidance, our Malaga property expert is ready to help.

Contact us today at property@malagaguru.com to discuss your options, get answers to your questions, and start your journey to owning a home in Malaga with confidence.