Buying Property on the Costa del Sol in 2026: The Ultimate Guide for International Buyers

Stretching along the Mediterranean coastline of southern Spain, the Costa del Sol has developed into one of Europe’s most active international property markets. The region forms part of Málaga Province and includes several of Spain’s most recognised residential destinations, among them Marbella, Benahavís, Estepona, and the regional capital Málaga.

Over the past three decades, the area has evolved from a seasonal tourism destination into a mature residential market supported by international infrastructure, strong air connectivity, and a large foreign resident population. Buyers from across Europe, North America, and the Middle East purchase property here both as primary residences and as second homes, drawn by the region’s climate, lifestyle, and well-developed property market.

Despite its popularity, the process of purchasing property in Spain differs from that of many other European countries. Understanding the legal steps, taxes, and regulatory framework involved is essential before committing to a purchase.

Who Can Buy Property in Spain

Spain places no restrictions on foreign individuals purchasing real estate. Both residents and non-residents are legally entitled to buy property, whether as individuals or through corporate structures. However, all buyers must obtain a Número de Identidad de Extranjero (NIE), a tax identification number issued by the Spanish authorities. This number is required for property purchases, tax payments, and most financial transactions in Spain.

In practice, international buyers should also open a Spanish bank account before completing a purchase. This simplifies the payment of purchase funds as well as ongoing expenses such as utilities, property taxes, and community fees.

Understanding the Costa del Sol Property Market

Although the Costa del Sol is often discussed as a single property market, it is better understood as a collection of distinct residential areas with different characteristics. Marbella remains the most established luxury destination, with well-known residential districts such as the Golden Mile, Sierra Blanca, and Nueva Andalucía. Benahavís, located just inland, is known for gated hillside estates including La Zagaleta and El Madroñal, where villas sit on significantly larger plots. Estepona, further west, has become a centre for modern residential developments, particularly along the New Golden Mile corridor.

Each municipality therefore plays a different role within the regional market. Marbella offers some of the most mature and established neighbourhoods, Benahavís provides large private estates in elevated surroundings, and Estepona accommodates much of the region’s newer residential development.

The Property Buying Process in Spain

Purchasing property in Spain follows a clearly defined legal process that culminates in the signing of a public deed before a notary. The process typically begins once a buyer identifies a property and agrees on a price with the seller. At this stage, a reservation agreement is often signed and a small deposit is paid to temporarily remove the property from the market while legal checks are carried out.

During this period, the buyer’s lawyer conducts due diligence on the property. This includes confirming ownership through the Spanish Land Registry, verifying that the property is free from debts or charges, and checking that the building complies with local planning regulations. These checks are essential, particularly for villas where extensions or modifications may have taken place after the original construction.

Once the legal checks are completed, both parties sign a private purchase contract known as a Contrato de Arras. At this stage the buyer typically pays a deposit of around ten percent of the agreed purchase price. This contract establishes the conditions of the sale and the timeline for completion.

The final step takes place before a Spanish notary, where the public deed of sale, known as the Escritura Pública, is signed. The buyer pays the remaining balance of the purchase price and ownership is formally transferred. The transaction is then registered in the Land Registry, ensuring the new owner’s legal title is recorded.

The Property Buying Process in Spain

Buyers should expect additional costs beyond the agreed purchase price. In Andalusia, these typically amount to roughly ten to thirteen percent of the property value depending on the type of property being purchased.

For resale properties, buyers pay Property Transfer Tax (ITP), which is currently set at seven percent of the purchase price. New-build properties are subject to a different tax structure, where buyers pay Value Added Tax (IVA) at ten percent along with stamp duty, which is generally around 1.2 percent.

In addition to these taxes, buyers must also pay notary fees, Land Registry costs, and legal fees. Legal fees vary depending on the complexity of the transaction but often represent around one percent of the purchase price.

New Build and Off-Plan Purchases

Many buyers on the Costa del Sol purchase newly constructed homes or properties still under construction. When buying off-plan, deposits are typically paid in stages during the construction process. Spanish law requires developers to provide financial guarantees or insurance that protect buyers’ deposits in the event that the development is not completed.

For this reason, buyers should always confirm that their payments are secured through appropriate guarantees before transferring funds to a developer.

Financing Property Purchases

Spanish banks commonly offer mortgages to international buyers, although the loan conditions may differ from those available to Spanish residents. Non-resident buyers typically obtain financing for between sixty and seventy percent of the property value, depending on their financial profile and the bank’s lending policies.

Mortgage approval usually requires documentation demonstrating income, assets, and tax residency. Because approval can take time, buyers planning to finance a purchase often begin the mortgage process early in the transaction.

Property Ownership and Ongoing Costs

Owning property in Spain involves several recurring expenses. The most significant of these is the IBI, the local property tax paid annually to the municipality. Properties located within residential developments also pay community fees, which cover the maintenance of shared areas such as gardens, pools, and security services.

Non-resident property owners may also be required to file a non-resident income tax declaration each year, even if the property is not rented.

Golden Visa

Historically, Spain offered a residency pathway known as the Golden Visa, which allowed foreign buyers to obtain residency through property investment. This programme ended for new applicants in April 2025. While property ownership no longer provides access to this route, other residency options remain available for individuals wishing to live in Spain long term.

Final Perspective

Buying property on the Costa del Sol is a well-established process supported by a mature legal framework and decades of international investment. For buyers who understand the purchase procedure, taxes, and regulatory requirements, the region continues to offer one of Europe’s most accessible and active residential property markets.

The combination of international connectivity, established infrastructure, and a diverse range of residential environments, from coastal apartments to hillside estates, has ensured that the Costa del Sol remains a central destination for international property ownership.