Key Takeaways
- Costa del Sol prices range from €2,000 to €5,000/m² depending on location — Marbella commands the premium, Fuengirola offers the entry point.
- Buying costs add 10–13% on top of the purchase price — budget for transfer tax (ITP at 7%), notary fees, registry fees, and legal costs before you make an offer.
- Non-residents pay property taxes too. IBI (annual council tax), non-resident income tax (24% of 1.1–2% of cadastral value), and capital gains tax (19% for EU residents) all apply.
- You need a gestor or property lawyer — Spanish conveyancing has no built-in buyer protection. A €1,500–3,000 lawyer fee is the cheapest insurance you’ll buy.
- Non-residents can get Spanish mortgages — up to 70% LTV, typically at variable or mixed rates, requiring 3+ months of bank statements and proof of income.
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Spain is consistently one of the top property markets for foreign buyers in Europe. On the Costa del Sol alone, international buyers account for over 40% of transactions in some municipalities. The process is straightforward once you understand it — but the gaps between Spanish property law and what most buyers expect from home are where mistakes happen.
This page covers the full landscape: buying, renting, taxes, mortgages, and the Costa del Sol market. Each section links to deeper guides where the detail matters.
The Costa del Sol Property Market in 2026
Price per square metre varies sharply by location. These are working benchmarks for residential resale property — new-build commands a 15–25% premium in most areas:
- Marbella / Puerto Banús: €3,500–5,000/m²
- Málaga city: €2,500–3,500/m²
- Estepona: €2,200–3,200/m²
- Fuengirola / Mijas Costa: €2,000–2,800/m²
The Golden Mile in Marbella and areas around Nueva Andalucía regularly exceed €6,000–8,000/m² for luxury product. Benalmádena and Torremolinos sit between Fuengirola and Málaga in price terms.
New-Build vs Resale
New-build properties are subject to IVA (VAT) at 10% rather than ITP (transfer tax). That 3-percentage-point difference matters less than it looks — new-builds carry developer premiums and often require deposits of 10–30% held for 2–4 years during construction. Resale properties are immediately available and fully inspectable. On the Costa del Sol, resale stock is extensive and quality ranges from renovated to tired — survey costs (€500–900) pay for themselves.
New-builds do offer advantage on energy efficiency ratings and payment structure for those who want to stage payments. The key legal protection for new-build off-plan: ensure your stage payments are covered by a bank guarantee (aval bancario) under Law 57/1968 or its successor provisions.
Buying Property in Spain: The Process
The Spanish buying process runs in four stages: reservation, private purchase contract, mortgage (if applicable), and notarial deed. The full walkthrough — including NIE requirements, which taxes you pay when, and what to check in the Nota Simple — is in the complete guide to buying property in Spain.
Key costs to budget:
- ITP (Impuesto de Transmisiones Patrimoniales): 7% in Andalucía for resale properties
- IVA (VAT): 10% for new-build residential
- Notary fees: €600–1,200 depending on price
- Land Registry: €400–800
- Legal/gestor fees: €1,500–3,000
Total acquisition costs typically run 10–13% over the purchase price. See the full breakdown in our guide to property purchase costs in Spain.
The Land Registry (Registro de la Propiedad) is where title is formally recorded. Understanding what’s registered — and what charges exist on a property — is covered in our Land Registry guide.
Conveyancing and Using a Property Lawyer
Spanish conveyancing has no equivalent of the UK or Irish solicitor system — there’s no professional whose job is to protect the buyer. Notaries confirm the transaction is legal; they don’t check for debts, planning violations, or boundary issues.
An independent property lawyer in Spain will:
- Check for outstanding charges or debts registered against the property
- Verify the seller actually owns what they’re selling
- Confirm planning permissions for any extensions or structures
- Review the private purchase contract (contrato de arras) before you commit
- Manage the NIE application process if needed
Fees run €1,500–3,000 for a standard residential purchase. The full conveyancing process is covered in our conveyancing in Spain guide.
Mortgages for Non-Residents
Spanish banks will lend to non-residents. The terms are tighter than for residents:
- Maximum LTV: 70% (vs 80% for residents)
- Term: Typically up to 25–30 years, subject to age at maturity
- Rates: Variable (Euribor + 0.7–1.2%), fixed (3.5–4.2%), or mixed
- Required documents: 3–6 months bank statements, last 2 years tax returns, employment contract or business accounts
Spanish mortgage law was significantly reformed in 2019 (Ley 5/2019), shifting most costs to the bank. Buyers now only pay the property valuation (tasación: €300–600) and notary copy fees. The full picture is in our Spanish mortgage guide for non-residents.
Renting in Spain
Spain’s rental market on the Costa del Sol is tight. Long-term rental stock has been squeezed by holiday let conversions, and rent controls under the 2023 Ley de Vivienda apply differently across autonomous communities — Andalucía has not declared itself a “stressed area,” so Madrid-style caps don’t currently apply here.
Tenant rights under Spanish law are strong: minimum 5-year tenancies for private landlords, 7 years for corporate landlords, with automatic annual extensions. Deposits are capped at 2 months. Everything you need as a tenant — what to check in a lease, how to handle deposit disputes, your rights on maintenance — is in the renting in Spain guide.
Property Taxes in Spain
Property ownership in Spain generates multiple tax obligations. Missing any of them creates interest charges and surcharges.
IBI (Impuesto sobre Bienes Inmuebles)
IBI is the annual council tax on property. Rates vary by municipality — on the Costa del Sol, typically 0.4–1.1% of cadastral value annually. Cadastral value is usually well below market value, so the real tax burden is lower than it looks. Full details, including how to set up direct debit and what happens if you miss a payment, in our IBI property tax guide.
Non-Resident Income Tax (Imputed Rent)
Non-residents who don’t rent their Spanish property still pay a notional income tax: 24% applied to 1.1% or 2% of the cadastral value (the lower rate applies where cadastral values have been revised in the last 10 years). For a property with a €100,000 cadastral value, that’s typically €264–480/year. Paid via Modelo 210 by 31 December each year.
Capital Gains Tax on Sale
Selling generates two separate taxes: Capital Gains Tax (CGT) on the profit, and Plusvalía Municipal on the increase in land value. CGT for non-residents is 19% (EU/EEA residents) or 24% (non-EU). As a seller, the buyer withholds 3% of the purchase price as a deposit against your CGT liability — you reclaim any excess via Modelo 210. The detailed calculation, including allowable deductions, is in our capital gains tax guide.
Plusvalía Municipal is a separate local tax charged by the town hall on the notional increase in the land’s cadastral value over your ownership period. Since the Constitutional Court ruling in 2021, the calculation method changed significantly. Full explanation in the CGT guide above.
Rental Income Tax
If you rent your property — short-term or long-term — income is taxable. Non-EU residents pay 24% on gross rental income with no expense deductions. EU/EEA residents pay 19% on net income after allowable expenses (mortgage interest, IBI, depreciation, agency fees). The full breakdown is in our rental income tax guide.
Community Fees (Comunidad de Propietarios)
Most apartments and urbanisations in Spain are governed by a community of owners (comunidad de propietarios) under the Horizontal Property Law (Ley 49/1960 and its amendments). Community fees cover maintenance of common areas, gardens, pools, lifts, and building insurance.
On the Costa del Sol, monthly fees range from €50–150 for standard apartments to €500–1,500+ for luxury gated communities with 24-hour security, tennis courts, and concierge services. Before buying, request the last 3 years of community accounts, the current fee amount, and whether there are any pending derramas (one-off special assessments for major repairs). Outstanding community debts transfer with the property — you inherit them as the new owner.
The administrator (administrador de fincas) manages the community. Annual general meetings set the budget and elect the president. Non-payment of fees results in a formal debt claim via the courts — Spanish law strongly favours the community in these disputes.
The Golden Visa
Spain’s Golden Visa program has offered residency to non-EU nationals who invest €500,000+ in Spanish real estate. The program was announced for closure in 2024 by the Sánchez government, though the legislative process has been complex. Current status and what it means for buyers who qualified or are considering it is covered in our Golden Visa Spain guide.
Frequently Asked Questions
Can non-EU citizens buy property in Spain?
Yes, with no restrictions. Any foreign national can purchase property in Spain regardless of nationality. You’ll need a NIE (Número de Identificación de Extranjero) to complete the purchase — this is obtained from the National Police or Spanish consulate. The NIE is a tax identification number, not a residency permit.
Do I need to be resident in Spain to buy property there?
No. Non-residents buy property in Spain routinely. You’ll have different tax obligations as a non-resident (see non-resident income tax and the 3% CGT withholding on sale above), but there’s no residency requirement to purchase.
How long does the buying process take?
From agreed sale to completion, typically 6–10 weeks. Longer if there are title issues, mortgage approval delays, or outstanding debts to clear. The main stages: reservation (1–2 weeks), arras contract (exchange equivalent, immediate), mortgage valuation and approval (3–5 weeks if applicable), notarial deed (completion).
What is the arras contract?
The contrato de arras is the private purchase contract signed after price agreement. You pay a deposit — typically 10% of the purchase price. Under arras penitenciales (the most common type, governed by Article 1454 of the Civil Code), if you pull out you lose the deposit; if the seller pulls out they pay you double. This is legally binding and treated seriously — don’t sign it without your lawyer reviewing it.
Are there ongoing costs beyond IBI?
Yes: community fees (if applicable), building insurance, contents insurance, non-resident income tax (if you’re not renting), utility standing charges (electricity, water — typically €50–100/month combined even on empty properties), and if you use a property management company, their fees (typically 10–15% of rental income or €100–200/month for key-holding and maintenance oversight).
What’s the difference between catastral value and market value?
Cadastral value (valor catastral) is an administrative valuation set by the local authority for tax purposes. It’s typically 30–70% of market value, though in some areas the gap is smaller. IBI, non-resident income tax, and Plusvalía Municipal are all calculated from cadastral value. When you buy, the tax authority (Junta de Andalucía for ITP purposes) has its own reference values (valores de referencia del catastro) that have been used since 2022 as the minimum taxable base — even if you buy below that value, you pay ITP on the reference value.
Related Guides
Frequently Asked Questions
Do I need a gestor for this process?
For most administrative procedures in Spain, a gestor simplifies the process significantly. They handle paperwork, book appointments, and know the practical requirements that websites often do not mention. Fees typically range from EUR 50-150 per procedure.
What documents do I need?
At minimum, you will need your NIE (or passport for initial procedures), proof of address (padron certificate or utility bill), and documentation specific to the procedure. Always bring originals and copies of everything.
How long does this process take?
Processing times vary by office and procedure. Simple administrative tasks take days to weeks. Residency, tax, and property matters can take weeks to months. Having all documentation correct from the start prevents delays.
Where can I get help in English?
English-speaking gestoria offices on the Costa del Sol handle most expat administrative needs. See our guide to English-speaking gestorias for recommendations. Many town halls in tourist areas also have some English-speaking staff.
