The Step-by-Step Guide to Buying New-Build Property in Marbella for French Citizens

Introduction: Your Gateway to New-Build Property in Marbella

Marbella, a jewel on Spain’s Costa del Sol, continues to attract discerning international buyers with its luxurious lifestyle, stunning scenery, and vibrant new-build property market. For French citizens considering a move or a second home, purchasing a new-build property in Marbella offers numerous advantages, including modern design, energy efficiency, and often, attractive off-plan payment structures. This guide, brought to you by Life in Costa, details the step-by-step process, essential legal requirements, and tax considerations for French buyers embarking on their property journey in the developments we recommend in this captivating region.

Why Choose a New-Build in Marbella?

Marbella’s appeal is undeniable, from its golden beaches to its world-class golf courses and sophisticated gastronomy. The new-build market, in particular, presents an exciting opportunity for foreign buyers. These contemporary properties often boast high specifications, integrated smart home technology, and access to exclusive communal amenities such as swimming pools, gyms, and lush gardens. Opting for a new-build, especially off-plan, allows for a degree of customisation and ensures a property that meets the latest building standards and energy efficiency regulations.

Preliminary Steps Before Your Property Search

Before you begin viewing the developments we recommend, there are a few crucial administrative steps to undertake:

1. Obtain your NIE Number (Número de Identificación de Extranjero): This unique identification number is indispensable for any legal or financial transaction in Spain, including buying property, opening a bank account, or signing utility contracts. French citizens can apply for an NIE at a Spanish Police Station (Comisaría de Policía) in Spain or through the Spanish Consulate in France.
2. Open a Spanish Bank Account: You will need a local bank account to manage property payments, taxes, utility bills, and mortgage repayments. This simplifies financial transactions throughout the purchase process and beyond.
3. Engage Independent Legal Counsel: It is highly recommended to appoint an independent Spanish lawyer specialising in property law. They will conduct due diligence, review contracts, ensure all necessary licences are in place, and represent your interests throughout the entire process. This is particularly important for off-plan purchases, where legal protection is paramount.

The Step-by-Step New-Build Property Purchase Process in Marbella

The acquisition of a new-build property in Spain typically follows a structured sequence:

1. Reservation Contract (Contrato de Reserva): Once you have identified a suitable new-build property, you will sign a reservation contract and pay a small reservation fee (typically €6,000 – €12,000). This takes the property off the market for a limited period, allowing your lawyer to begin due diligence.
2. Due Diligence and Developer Checks: Your lawyer will meticulously verify the developer’s legitimacy, ensuring they own the land, possess all necessary building permits (licencia de obra), and that the property will be registered in the Land Registry upon completion. For off-plan purchases, it is critical to confirm that the developer provides a bank guarantee (aval bancario) or insurance policy for all payments made during construction. This protects your investment in case of construction delays or the developer’s insolvency.
3. Private Purchase Contract (Contrato Privado de Compraventa): After satisfactory due diligence, you will sign the Private Purchase Contract (PPC) or «Arras» contract. At this stage, you typically pay a deposit, usually 10-30% of the purchase price, less the reservation fee. The PPC outlines the terms of the sale, including the purchase price, payment schedule, completion date, and a detailed description of the property. For off-plan properties, it will specify the quality of materials and finishes.
4. Payments During Construction: For off-plan properties, the remaining balance (excluding the amount to be financed by a mortgage) is paid in instalments linked to construction milestones. Each instalment should be covered by a bank guarantee, safeguarding your payments until completion.
5. Completion and Signing the Public Deed (Escritura Pública): Upon completion of the property, you will attend the notary office to sign the Public Deed of Sale (Escritura Pública). At this point, the remaining balance of the purchase price is paid, and ownership is transferred. The notary ensures the legality of the transaction and witnesses the signatures.
6. Property Registration: Your lawyer will then arrange for the Public Deed to be registered in the Spanish Land Registry (Registro de la Propiedad). This formal act legally confirms you as the new owner and protects your rights to the property.
7. Connection of Utilities and Tax Registration: Following registration, your lawyer will assist with connecting utilities (electricity, water, gas, internet) and registering the property with the local town hall for IBI (Impuesto sobre Bienes Inmuebles) purposes.

Understanding Costs and Taxes for New-Build Property in Marbella

When purchasing a new-build property in Marbella, several taxes and fees apply. It is crucial to budget for these in addition to the property’s purchase price, typically amounting to 10-15% of the property value.

One-Off Purchase Taxes:

• Value Added Tax (IVA – Impuesto sobre el Valor Añadido): For new-build residential properties, IVA is applied at a rate of 10% of the purchase price. This is paid directly to the developer at each payment stage.
• Stamp Duty (AJD – Impuesto sobre Actos Jurídicos Documentados): In Andalusia, AJD for new-build properties is 1.2% of the purchase price. This tax is paid when the Public Deed is signed at the notary.
• Notary Fees: These are official fees for the notary’s services for witnessing and certifying the Public Deed. They are regulated by law and typically range from €600 to €1,000, depending on the property’s value.
• Land Registry Fees: Fees for registering the property under your name at the Land Registry, usually between €400 and €800, also dependent on the property’s value.
• Legal Fees: Typically 1% to 1.5% of the purchase price, plus 21% VAT, covering your lawyer’s services throughout the entire process.
• Utility Connection Fees: For new-builds, there may be fees to connect to electricity, water, and gas mains, known as «alta de suministros.» These can vary but typically range from €500 to €1,500.

Ongoing Property Ownership Costs:

• Local Council Tax (IBI – Impuesto sobre Bienes Inmuebles): An annual municipal tax based on the cadastral value (valor catastral) of the property. The rate varies by municipality; in Marbella, it is set by the Town Hall.
• Non-Resident Income Tax (IRNR – Impuesto sobre la Renta de No Residentes): As a French citizen and non-resident property owner, you are subject to annual IRNR.
  • If you do not rent out the property, the tax is calculated on a deemed income, which is a percentage of the cadastral value (typically 1.1% or 2%). For EU/EEA citizens, a tax rate of 19% is applied to this deemed income.
  • If you rent out your property, you must declare and pay 19% tax on the gross rental income, deductible expenses may apply.

  This tax is declared via Modelo 210.

• Community Fees (Gastos de Comunidad): If the property is part of a community of owners (e.g., an apartment in a complex or a villa in a gated community), you will pay monthly or quarterly community fees to cover the maintenance of communal areas, gardens, swimming pools, and other shared services. These vary significantly depending on the amenities offered.
• Utility Bills: Regular costs for electricity, water, gas, and internet.
• Wealth Tax (Impuesto sobre el Patrimonio): While Spain has a national wealth tax, exemptions and regional variations apply. Andalusia applies its own wealth tax. French citizens may be subject to this tax if their net assets in Spain exceed the regional exemption threshold. This is a complex area best discussed with your legal and tax advisor.

Taxes on Future Sale (For Consideration)

While this guide focuses on the purchase process, it’s prudent for French buyers to be aware of taxes applicable upon a future sale of their Spanish property:

• Capital Gains Tax (Impuesto sobre la Renta de las Personas Físicas / Impuesto sobre la Renta de No Residentes): For non-residents, capital gains from the sale of property are taxed at a rate of 19% for EU/EEA citizens.
• Buyer Retention (Retención del 3%): When a non-resident sells a property in Spain, the buyer is legally obliged to withhold 3% of the sales price and pay it directly to the Spanish tax authorities (Agencia Tributaria). This acts as an advance payment towards the seller’s capital gains tax liability. The seller can then claim a refund if the actual capital gains tax is lower than the retained amount, or pay the difference if it is higher.
• Municipal Capital Gains Tax (Plusvalía Municipal): This is a local tax levied by the town hall on the increase in the value of the urban land on which the property stands, from the date of acquisition to the date of sale. The amount depends on the cadastral value of the land, the number of years of ownership, and the municipality’s specific coefficients.

Financing Your New-Build Property in Marbella

Many French buyers choose to finance their property purchase with a Spanish mortgage. While conditions vary between lenders, non-residents can typically borrow up to 70% of the property’s valuation or purchase price (whichever is lower) for a new-build. It is advisable to explore mortgage options early in the process and secure pre-approval.

Relocation and Residency for French Citizens in Spain

As French citizens, you benefit from freedom of movement within the European Union. However, for stays exceeding a certain duration, specific administrative steps are required:

1. Stays of up to 90 days: For tourist or short-term visits, French citizens can reside in Spain for up to 90 days within any 180-day period without any special requirements beyond a valid passport or national ID card.
2. Stays exceeding 90 days (Residency): If you plan to stay in Spain for longer than 90 days, or intend to become a resident, you must register your presence.
   • Residency Certificate (Certificado de Registro de Ciudadano de la Unión): This is the initial step for EU citizens planning to reside in Spain. You will register with the Foreigners’ Office (Oficina de Extranjeros) or a police station, demonstrating sufficient financial means and healthcare coverage.
   • TIE (Tarjeta de Identidad de Extranjero): While not strictly mandatory for EU citizens (the Certificado de Registro is sufficient to prove residency), many French residents opt to obtain a TIE, which is a physical identity card. It can simplify administrative procedures and is required for non-EU residents.
   • Empadronamiento: Once you have a permanent address, you should register at the local town hall (Ayuntamiento) on the «padrón municipal.» This registration, known as «empadronamiento,» is essential for accessing local services and exercising certain rights.

Conclusion

Buying a new-build property in Marbella offers an exciting opportunity for French citizens to invest in a desirable lifestyle and a thriving property market. By understanding the step-by-step process, engaging expert legal and financial advice, and being aware of the associated taxes and residency requirements, you can navigate your purchase with confidence. Life in Costa is here to guide you through the exceptional range of new-build properties available in the areas we cover, ensuring a smooth and successful acquisition.