June 17
The Costa del Sol has long been one of Europe’s most desirable destinations for second homes, holiday properties, and lifestyle relocations.
But in 2026, overseas buyers are asking more practical questions than ever before:
These are not just theoretical questions. They are the exact issues dominating buyer discussions across expat forums, relocation communities, and property research groups. The tone has shifted from lifestyle aspiration to risk awareness and financial clarity.
This guide explains everything overseas buyers need to know before purchasing property on the Costa del Sol in 2026.
Before starting the purchase process, it’s important to understand your primary goal.
Most overseas buyers fall into one of three categories.
Buyers who want a holiday property used several times per year.
Buyers planning to live in Spain full-time or part-time.
Buyers primarily focused on rental income and capital growth.
Each objective affects:
One of the most common questions overseas buyers ask is:
“Can foreigners buy property in Spain?”
The answer is simple.
Yes — Spain places no restrictions on foreign property ownership.
International buyers from:
regularly purchase property across the Costa del Sol.
However, foreign buyers must obtain a NIE (Número de Identidad de Extranjero) before completing the purchase.
The NIE is a tax identification number used for most financial transactions in Spain, including buying property, opening bank accounts, and paying taxes.
Owning property in Spain does not automatically give residency rights.
Non-EU citizens (including UK buyers) are normally limited to:
90 days in Spain within any 180-day period
This rule applies across the Schengen Area.
Buyers who want to stay longer typically explore residency options such as:
These visa pathways have become more relevant since Spain removed the Golden Visa property investment residency route, which previously allowed residency through property investment.
Location is the single biggest factor affecting property value and lifestyle.
The Costa del Sol stretches more than 150 km along the Mediterranean coast, offering a wide range of property markets.
These areas attract the highest international demand:
Popular with relocations and long-term living:
For buyers seeking larger homes or lower prices:
Property prices on the Costa del Sol have risen significantly over the past few years.
Recent data shows average asking prices in Málaga province reaching around €4,107 per square metre in early 2026, reflecting strong year-on-year growth.
This growth is driven by several factors:
For many buyers, the key decision is not whether prices are rising, but which locations still offer value relative to lifestyle and rental demand.
Many overseas buyers underestimate the total cost of purchasing property in Spain.
In Andalucía, typical purchase costs include:
For resale properties the rate is: 7% of the purchase price
For new development/build properties the rate is: 10% of the purchase price
Typically around:
0.5 to 1.5% depending on the transaction depending on the region
Buyers should also budget for:
Most buyers should expect 10–13% on top of the purchase price.
Many international buyers purchase property with cash, but Spanish mortgages remain available for overseas buyers.
Typical lending conditions include:
| Buyer type | Typical mortgage |
|---|---|
| Residents | 70–80% loan-to-value |
| Non-residents | 60–70% loan-to-value |
Recent statistics indicate that the average mortgage interest rate for new housing loans in Spain was around 2.87% by late 2025, although non-resident buyers may receive slightly higher rates.
Banks will typically request:
Once a property is chosen, buyers normally sign a reservation contract.
This removes the property from the market while legal checks begin.
Typical reservation deposits:
€6,000 – €10,000
The buyer’s lawyer then performs due diligence checks.
One of the most important steps when buying property in Spain is legal verification.
A lawyer will typically check:
A key document used in this process is the “nota simple”, which confirms who legally owns the property and whether it has any charges or debts.
After due diligence, buyers normally sign a Contrato de Arras (private purchase contract).
This contract commits both parties to the sale.
The buyer usually pays a deposit of:
10% of the purchase price
If the buyer withdraws, the deposit is typically forfeited.
The final stage of the purchase takes place at a Spanish notary office.
At this meeting:
The deed is then registered in the Spanish Land Registry.
Property ownership in Spain includes several ongoing costs.
Apartments and gated communities typically charge monthly or annual maintenance fees.
A municipal tax based on the property’s cadastral value.
Owners should also budget for repairs and upkeep.
Even if the property is not rented, non-resident owners may be taxed on imputed rental income.
Many overseas buyers plan to rent their property when not using it.
However, short-term rentals are increasingly regulated.
Spain and the EU have introduced systems requiring registration numbers and data sharing for short-term rentals, with implementation expanding since 2025.
In Andalucía, tourist rentals must normally register as:
Viviendas de Uso Turístico (VUT)
Community associations may also restrict or prohibit tourist rentals in certain buildings.
Despite regulatory changes and rising prices, the Costa del Sol continues to attract international buyers.
The region offers a combination of:
These structural advantages help explain why the Costa del Sol remains one of the most resilient property markets in Europe.
Buying property on the Costa del Sol is a straightforward process when handled correctly.
However, the key to a successful purchase is preparation.
Overseas buyers should carefully plan:
With the right advice and guidance, purchasing property in southern Spain can be both financially rewarding and life-changing.
