Straight answers to the questions buyers, owners and sellers ask most often about property in Andalucía, Spain — with current 2026 tax rates and market data.
How the purchase works in Spain, what you need, and how long it takes.
Yes. There are no nationality or residency restrictions on foreigners buying property in Spain, including on the Costa del Sol. EU and non-EU citizens (British, Scandinavian, American and others) can all buy freely and hold full ownership.
The only universal requirement is a Spanish tax number for foreigners, called an NIE. You do not need to live in Spain or hold Spanish residency to own a home there.
An NIE (Número de Identidad de Extranjero) is the Spanish tax identification number for foreigners, and yes — you need one to complete a property purchase. It is required to sign the title deed, pay taxes and open utilities.
You apply at a Spanish police station, a Spanish consulate in your home country, or through your lawyer with power of attorney. The application fee is around €15. Getting the NIE early is the single most common way to avoid delays at completion.
Buying property in Spain follows four main steps: reservation, private purchase contract, notary completion, and Land Registry registration.
Plexo Properties recommends appointing an independent Spanish lawyer before signing anything — they run the due diligence (debts, licences, planning) that protects the buyer.
A resale purchase on the Costa del Sol typically completes in 6 to 12 weeks from accepted offer to signed deed. A new-build off-plan purchase runs to the developer's construction timeline, which can be one to three years.
The main variables are getting your NIE, opening a Spanish bank account, and — if you need finance — mortgage approval, which for non-residents usually adds a few weeks.
Yes. Spanish banks lend to non-residents, typically up to 60–70% of the purchase price (loan-to-value), versus up to about 80% for residents. The rest, plus roughly 10–14% in buying costs, must be funded from your own resources.
Banks assess your income and existing debts and usually cap total loan repayments at about 30–35% of net income. The average Spanish mortgage in 2025 was about €211,000, a record high, reflecting a strong lending market (source: Notariado).
No. Spain's Golden Visa — residency by property investment — was abolished on 3 April 2025 and is no longer available. Buying a home in Spain does not by itself grant residency.
Non-EU buyers who want to spend extended time in Spain now use other routes, such as the non-lucrative visa (for those with sufficient passive income) or the digital nomad visa. EU/EEA citizens retain freedom of movement and can register as residents. Owning property is separate from, and no longer a shortcut to, residency.
Source: Organic Law 1/2025, effective 3 April 2025.
A lawyer is strongly recommended (not legally required) and a Spanish bank account is effectively necessary in practice. An independent Spanish lawyer protects the buyer; a local account is used to pay the deposit, taxes and, afterwards, utilities and community fees by direct debit.
Plexo Properties always advises appointing your own independent abogado — separate from the seller and the agent — before you sign or pay anything. The lawyer runs due diligence, handles the tax payments and represents you at completion.
Yes. You can complete a purchase remotely by granting your Spanish lawyer power of attorney (poder notarial), so they sign the deed and handle formalities on your behalf.
The power of attorney is signed before a notary — in Spain, or at a Spanish consulate or a local notary in your home country — and lets your lawyer obtain your NIE, sign the title deed and register the property without you being physically present. Many international buyers use this to avoid extra trips.
Before you commit, an independent lawyer verifies that the seller owns the property, that it is free of debts and charges, and that it is legally built and licensed. This due diligence is the main protection in a Spanish purchase.
Due diligence protects the buyer but does not replace confirming any property-specific issue with your own adviser before signing.
The taxes and professional fees you pay on top of the purchase price in Andalucía.
Budget roughly 10–12% on top of the price for a resale and 13–14% for a new-build in Andalucía. This covers transfer tax or VAT, notary, Land Registry, and legal fees.
The single biggest item is the purchase tax: 7% transfer tax (ITP) on a resale, or 10% VAT plus 1.2% stamp duty on a new-build. The rest is professional and registration fees, described below.
ITP (Impuesto de Transmisiones Patrimoniales) is the tax on buying a resale property, and in Andalucía it is a flat 7% of the purchase price. It applies to second-hand homes bought from a private seller.
Andalucía set this flat 7% rate in 2021 (replacing the old sliding 8–10% scale), and it remains 7% for ordinary buyers in 2026. ITP does not apply to new-builds — those are taxed with VAT instead.
Source: Junta de Andalucía (regional government), rate in force since 2021.
A new-build (bought from a developer) is taxed with 10% VAT (IVA) plus 1.2% stamp duty (AJD) in Andalucía — about 11.2% in tax combined. There is no ITP on new-builds.
A separately deeded garage or storage room bought with an off-plan home is taxed at 21% VAT rather than 10%. Stamp duty (Actos Jurídicos Documentados) is charged at Andalucía's 1.2% rate on the total.
Source: VAT set nationally by AEAT; AJD stamp duty set by the Junta de Andalucía at 1.2%.
Resale is cheaper on tax. A resale is taxed at 7% (ITP); a new-build is taxed at about 11.2% (10% VAT + 1.2% stamp duty) — roughly 4 percentage points more.
On a €500,000 home that is €35,000 in tax on a resale versus about €56,000 on a new-build. New-builds can still make sense for the newer build quality, warranties and payment-during-construction terms — but buyers should factor the higher tax into the budget.
Beyond purchase tax, expect notary and Land Registry fees of roughly €1,200–€2,500 combined on a typical resale, plus legal fees of about 1% of the price + 21% VAT.
| Item | Typical cost |
|---|---|
| Independent lawyer | ~1% + 21% VAT |
| Notary (escritura) | €700–€1,750 |
| Land Registry | €450–€1,200 |
| Bank draft fee | ~€300 |
| NIE application | ~€15 |
Notary and registry fees are set on official scales that rise with the property value; the figures above cover most Costa del Sol purchases.
On a €500,000 purchase in Andalucía, budget roughly €50,000–€60,000 in costs for a resale (~10–12%) and roughly €65,000–€75,000 for a new-build (~13–14%).
These are planning estimates. Your independent lawyer confirms the exact figures for your specific property before you commit. Plexo Properties' online cost calculator itemises every line for any price and both property types.
For ordinary private buyers, no — resale ITP stays at 7% in 2026. The 2026 reform introduced a reduced 2% ITP rate, but only for professional property traders, not for people buying a home to live in or let.
From 1 January 2026, a company or professional whose business is buying and reselling property can pay 2% ITP instead of 7% — provided the property (with garage/storage) is no more than €500,000 and is resold within two years. Purchases completed on or before 31 December 2025 keep the old rules (no price cap, five-year resale window). This does not change the tax for a normal residential buyer.
Source: Junta de Andalucía, 2026 reform to the reduced ITP rate for real-estate professionals.
What a non-resident owner pays each year to hold a Costa del Sol home.
A non-resident owner on the Costa del Sol pays three recurring things each year: IBI (council tax), non-resident income tax (Modelo 210), and community/running costs. Wealth tax is effectively zero in Andalucía for normal homes.
Each is explained in the questions below.
IBI (Impuesto sobre Bienes Inmuebles) is the annual local property tax every Spanish home pays, charged by the town hall on the property's cadastral value. On the Costa del Sol it typically runs from a few hundred euros to a couple of thousand a year for a normal home.
The rate is set by each municipality (broadly in the region of 0.4%–1.1% of the cadastral value, which is usually well below market value). It is due once a year regardless of whether you rent the property out or live in it.
If you own a Spanish property as a non-resident and do not rent it out, Spain still charges a small annual "imputed income" tax on the notional benefit of owning it, declared on form Modelo 210.
The taxable base is 1.1% of the cadastral value (or 2% if the cadastral value has not been revised in the last 10 years). That base is then taxed at 19% for EU/EEA residents or 24% for non-EU residents (including UK owners since Brexit).
Source: AEAT (Spanish Tax Agency), non-resident income tax, Modelo 210.
In practice, no — Andalucía applies a 100% rebate on regional wealth tax, so a normal home owner pays €0 in regional wealth tax, whether resident or non-resident.
A separate national "solidarity tax on large fortunes" can apply, but only to individuals whose Spanish assets exceed €3 million (with the first €700,000 exempt). An owner of an ordinary Costa del Sol home is well below that threshold and pays nothing.
Source: Junta de Andalucía (100% wealth-tax bonification since 2022) and AEAT (national solidarity tax, €3m threshold).
Owners of apartments and homes in gated developments pay monthly community fees for shared areas — commonly €100–€400 a month depending on the facilities (pools, gardens, security, gym).
On top of community fees, budget for utilities (electricity, water, internet), home insurance, and IBI. As a rough planning figure, Plexo Properties' rental model assumes about €1,800 a year for IBI and community charges combined on a typical apartment, plus around €150 a month in utilities when the home is in use.
The main Costa del Sol areas and what Plexo's own market data shows.
Plexo Properties focuses on La Cala de Mijas and the surrounding Mijas Costa as its core area, together with Marbella East (including Elviria) — while also covering Marbella, Estepona, Benahavís, Higuerón and Fuengirola. Each has a distinct price point and buyer profile.
The right area depends on budget, whether you want a villa or an apartment, and whether the priority is lifestyle, rental income or long-term value.
The average home in Andalucía sells for about €1,671 per square metre, below the Spanish national average of €1,894/m² (2025). That makes Andalucía relatively good value among Spain's popular coastal regions.
For comparison, the most expensive region is the Balearics at about €4,065/m², followed by Madrid at €3,456/m². Within Andalucía, prime Costa del Sol locations such as Marbella and Benahavís sit well above the regional average, while inland and eastern areas sit below it.
Source: Plexo Properties analysis of Spanish notary data (Centro de Información Estadística del Notariado), figures to November 2025.
Rising. The Spanish national average price reached €1,894/m² in 2025 — an all-time high that has fully recovered the losses from the 2008 crash.
Prices bottomed at €1,208/m² in 2013 and have climbed every year since. Transaction volumes are also healthy: around 721,000 national sales in 2024 and roughly 678,000 in 2025, close to the busiest years on record. Recent momentum has cooled to steady rather than sharp growth, which points to a maturing rather than overheating market.
Source: Plexo Properties analysis of notary data (Notariado), Jan 2007–Nov 2025.
Andalucía is the most active property market in Spain by volume — it accounts for about 19.8% of all Spanish home sales, roughly 134,000 transactions a year, more than any other region.
That is ahead of Catalonia and the Valencian Community (each around 15.4%) and well ahead of Madrid (about 11.2%). High liquidity matters for buyers and sellers alike: it means a deep pool of comparable sales and generally quicker resales.
Source: Plexo Properties analysis of notary data (Notariado), last 12 months to Nov 2025.
It comes down to budget and use. Apartments dominate the Spanish market — about 76% of all sales — and cost more per square metre (~€2,164/m²) but less in total; villas are ~€1,422/m² but far larger.
Nationally, the average apartment sold is around 94 m² while the average single-family home is around 172 m². Apartments suit lock-up-and-leave use and holiday letting; villas suit families and those wanting land, privacy and a pool. On the Costa del Sol both are widely available in every core area.
Source: Plexo Properties analysis of notary data (Notariado), last 12 months.
Spanish house prices have risen every year since 2013. The national average went from a low of €1,208/m² in 2013 to €1,894/m² in 2025 — an increase of about 57% — and 2025 is an all-time high.
| Year | Avg price/m² (Spain) | National sales |
|---|---|---|
| 2013 (cycle low) | €1,208 | 306,061 |
| 2019 | €1,438 | 574,046 |
| 2022 | €1,629 | 721,351 |
| 2024 | €1,769 | 721,042 |
| 2025 | €1,894 | 678,435 |
Source: Plexo Properties analysis of Spanish notary data (Centro de Información Estadística del Notariado), Jan 2007–Nov 2025.
The recovery has been steady rather than a bubble: prices took until 2024 to fully surpass the 2007 pre-crash peak, and recent quarters show growth cooling to a stable pace. For a longer-term owner, the direction over the past decade has been consistently upward.
The Costa del Sol draws investors for three data-backed reasons: consistent price growth (Spain's national average is up about 32% since 2020), Andalucía's high market liquidity, and strong holiday-rental demand.
Andalucía's average price of €1,671/m² sits below the national €1,894/m², which many investors read as relative value in a region that nonetheless leads Spain in sales volume. Prime Costa del Sol locations (Marbella, Benahavís) trade well above the regional average. That said, past growth is not a guarantee of future returns, and net investment yield depends on costs, taxes and rental performance — see the renting section for the numbers.
Source: Plexo Properties analysis of notary data (Notariado), 2007–2025.
Highly international — in Málaga province (which includes the Costa del Sol), non-resident foreign buyers made up about 28.4% of all home purchases in the year to Q1 2025, far above the national foreign share.
Across Spain, foreign buyers accounted for roughly 18% of sales (about 7.9% of them non-residents) over the same period. German and Dutch buyers are among the fastest-growing nationalities, alongside long-established British and Scandinavian demand. For an owner, a deep international buyer pool supports both liquidity and resale.
Source: CaixaBank Research, based on Registradores (Spanish land registrars) data, year to Q1 2025.
What a seller pays, especially as a non-resident.
A seller pays capital gains tax on the profit, plus the municipal plusvalía tax on the increase in land value. Non-residents also have 3% of the sale price withheld at completion against their CGT bill.
Source: AEAT (CGT and 3% retention); local town hall (plusvalía).
Capital gains tax is charged on the net gain — the sale price minus the original purchase price, purchase costs and documented improvements — at 19% for EU/EEA sellers or 24% for non-EU sellers.
Because your original buying costs and renovation invoices are deductible, keeping every receipt directly reduces the taxable gain. CGT for non-residents is settled on Modelo 210.
When the seller is a non-resident, the buyer must withhold 3% of the sale price and pay it directly to the Spanish tax office as an advance on the seller's capital gains tax. It is declared on Modelo 211.
If your actual CGT is more than the 3% withheld, you pay the difference; if it is less — or you made no gain — you can reclaim the balance from the tax office. The 3% is not an extra tax, just a prepayment mechanism.
Source: AEAT, Modelo 211 (retention) / Modelo 210 (CGT settlement).
Plusvalía municipal is a local tax on the increase in the value of the land (not the building) between when you bought and when you sell, paid to the town hall.
It is calculated from the cadastral land value and the number of years you owned the property, using each municipality's own method, so the amount varies by town. Since a 2021 reform, sellers can choose the calculation basis and there is no plusvalía if you sell at a loss. Always have a local lawyer or gestor confirm the exact figure.
Selling costs are led by the estate agent's commission — typically 3–7% of the sale price plus 21% VAT — plus legal fees, capital gains tax and a few certificates.
| Item | Typical cost |
|---|---|
| Estate agent commission | 3–7% + 21% VAT |
| Lawyer | ~1% + 21% VAT |
| Energy certificate (EPC) | ~€150 |
| Habitation certificate | ~€100 |
| Mortgage cancellation (if any) | variable |
Plexo Properties' cost calculator models the full seller position — gross gain, CGT at 19% or 24%, the 3% retention, plusvalía and net proceeds — for any sale price.
Holiday vs long-term letting, realistic yields, and how rental income is taxed.
Yes, but holiday letting on the Costa del Sol requires a tourist licence registered with the Junta de Andalucía, and the property must meet minimum standards (air conditioning, guest information, complaint forms, etc.).
Some apartment communities also restrict short-term letting in their bylaws, so check before you buy if rental income is part of the plan. Long-term letting (contracts of several months or more) is governed by national tenancy law and does not need a tourist licence.
Holiday-rental nightly rates and occupancy vary sharply by area. Premium spots like Marbella and Benahavís command the highest rates, while value areas like Fuengirola and Estepona offer strong occupancy.
| Area | Nightly (mid) | Occupancy |
|---|---|---|
| La Cala de Mijas / Mijas Costa | ~€160 | 63% |
| Marbella (incl. Marbella East / Elviria) | ~€210 | 67% |
| Benahavís | ~€230 | 62% |
| Estepona | ~€145 | 61% |
| Fuengirola | ~€120 | 65% |
| Nerja | ~€135 | 68% |
Net yield depends on costs — platform fees (~15.5%), management (~20% + VAT), cleaning, utilities, insurance, IBI and tax. Plexo Properties' rental calculator turns these into a realistic net yield for any purchase price and area.
Source: Plexo Properties rental market model, Costa del Sol areas.
Rental income earned by a non-resident is taxed at 19% for EU/EEA residents and 24% for non-EU residents, declared on Modelo 210. EU/EEA owners can deduct expenses; the position for non-EU owners is improving following a 2025 court ruling.
EU/EEA residents deduct costs such as IBI, community fees, insurance, mortgage interest, utilities and depreciation against the rent, and pay 19% on the net. Non-EU residents (including UK) have historically been taxed at 24% on gross rent, though recent Spanish case law is moving toward allowing them deductions too. EU/EEA rental returns are filed quarterly; imputed-income returns are annual.
Source: AEAT, non-resident income tax (Modelo 210); 2025 Spanish National Court ruling on non-EU deductions (pending final confirmation).
Holiday letting usually produces a higher gross yield but costs more to run and needs a tourist licence; long-term letting produces steadier, lower income with far less management.
Short-term suits owners who want to use the property themselves part of the year and accept active management (or a management company). Long-term suits owners who want reliable passive income and minimal involvement. The right choice depends on the area's demand, the community's rules, and how much you want to use the home yourself.
We advise buyers, owners and sellers across Marbella, Estepona, Mijas and the wider Costa del Sol — from first viewing to signed deed and beyond.
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