Costa del Sol Property

Costa del Sol property attracts more international buyers than any other stretch of the Spanish coast, and 2026 finds the market in an unusual position: rising, but for structural reasons rather than speculative ones. Coastal land is genuinely finite, permanent relocation has replaced pure holiday demand, and the mortgage book behind the market is small.

This is the overview page — the market, the geography, the money and the process, in one place.

The market in 2026

Prices on the western coast have grown for eleven consecutive years, currently at mid-single-digit annual rates after the double-digit surge of 2021–2023. Around 70% of prime transactions are cash. Foreign buyers account for roughly a third of all Málaga province transactions and a much higher share on the western strip. New build supply is constrained by planning capacity in Marbella and Estepona, which is the main reason the price floor keeps rising.

How the coast divides geographically

East of Málaga: Nerja, Torrox, Torre del Mar — quieter, cheaper, more Spanish, cliffs rather than long beaches. Málaga city: an urban market with genuine year-round life and the coast's fastest cultural growth. Torremolinos to Fuengirola: dense, affordable, superbly connected by the Cercanías train. Mijas Costa to Marbella: the international core. Estepona to Manilva: the growth frontier, with the best value and the newest infrastructure. Sotogrande: a separate universe of polo, sailing and low-density estates.

The money: taxes and annual costs

Buying: 7% ITP on resale or 10% IVA plus 1.2% AJD on new build, plus 2–3% in fees. Holding: IBI at roughly 0.4–1.1% of cadastral value, basura, community fees, and — for non-residents — Modelo 210 imputed income tax annually even if you never let the property. Selling: 19% capital gains tax for EU/EEA non-residents, with 3% retained at completion, plus plusvalía municipal.

The five mistakes that cost the most

Using the seller's or agency's recommended lawyer rather than an independent one. Skipping the community's AGM minutes and inheriting a derrama. Buying an unrenovated villa without a builder's quote in hand. Transferring the purchase funds at a bank's retail exchange rate rather than through a currency broker. And buying before spending at least one January on the coast — the winter test decides more relocations than the summer one.

Frequently asked questions

Is Costa del Sol property a good investment?

For a well-located coastal property with rental potential, yes — gross yields of 4–6% plus a market that has risen for eleven years on cash rather than credit. The risk sits in over-supplied inland developments with thin resale demand.

Where is the best place to buy on the Costa del Sol?

Estepona for value plus new infrastructure, Marbella East for the best price per m² inside Marbella, Fuengirola and Benalmádena for affordability with year-round town life, and Sotogrande for low-density space.

What ongoing taxes do non-residents pay?

IBI council tax, refuse charges, community fees, and Modelo 210 non-resident imputed income tax filed annually — payable even when the property is never rented out.