Buying a property in Estepona and Why

Estepona: A Prime Real Estate Investment Spot in Costa del Sol

Looking for the perfect property investment on the Costa del Sol? Estepona has emerged as one of the top choices due to its flourishing real estate market and the attractive features it offers to potential buyers.

Why Estepona?

Estepona boasts more than 320 days of fantastic weather and ideal temperatures each year. With over 13 miles of stunning beaches and charming restaurants serving delightful Mediterranean cuisine, it’s an ideal place to relax and enjoy life.

The Great Location:

Thanks to high-quality road connections and highways, Estepona has become one of the best places to buy a property. Once you become a resident, you’ll get to experience the beautiful town center, colorful flower-lined streets, murals, museums, and immerse yourself in traditional Spanish culture – all contributing to an excellent lifestyle and quality of life.

Important Steps to Consider When Buying Property in Estepona:

1. NIE Number: Before purchasing a property, you’ll need a NIE (foreigner identification) number. This all-purpose ID is required for various official processes in Spain, including property purchase, opening a bank account, buying a car, and connecting utilities.
2. Taxes and Expenses: Be prepared to pay taxes and expenses related to the Title Deed. For new development properties, it’s 10% VAT and 1.2% stamp duty tax, while resale properties have a 7% transfer tax. Notary and Land Registry expenses are also part of the process.
3. Local Taxes: Each year, property owners must pay local taxes, known as IBI, and garbage tax.
4. Non-Resident Income Tax: Non-residents must pay this tax on the benefit obtained from property in Spain, even if it’s not rented.
5. Land Registry Verification: Ensure the property is registered in the Estepona Land Registry and has the First Occupancy Licence (LPO), confirming its legal construction.
6. Urbanistic Situation: Older properties (pre-1986) may lack LPO, requiring a non-urbanistic infringement certificate to confirm their legal status.
7. Debts and Liabilities: Verify with the community of owners for any outstanding debts on the property, including IBI and garbage tax, which the seller must clear before the sale.

In Conclusion:

When considering a property investment in Estepona, consult with a lawyer (ask our team for recommendation) to ensure a safe and secure investment. With legal due diligence, a well-chosen location, and a legally constructed property, Estepona offers one of the best investments on the Costa del Sol. The cost of living is affordable, making it an attractive option not only for retirees but also for young individuals looking to establish a permanent residence on the Costa del Sol.