Property for Sale in Costa Del Sol, Spain: A Handy Guide for Foreigners

With its brilliant coastline, lively lifestyle, and mild Mediterranean climate, Costa Del Sol offers a great opportunity to secure a residence in one of the most enviable areas of Europe.

Despite ups and downs in the Spanish real estate market, Costa Del Sol still attracts foreign investments.

From knowing the market to managing property taxes, this guide explains everything for those interested in buying a house in Costa Del Sol.

Why Invest in Property in Costa Del Sol?

See what makes the Costa Del Sol property market so attractive:

Golden Visa Opportunity

Acquiring property in Costa del Sol valued at €500,000 or more makes the buyer eligible for a Golden Visa to Spain, which includes residence for a long period and free movement around the Schengen area.

High Quality of Life

Costa Del Sol provides a relaxed lifestyle combined with rich culture, world-class dining, and excellent healthcare – everything you might find from a developed country like the US, Australia, or the UK, but at lesser cost.

Thriving Rental Market

Properties here can assure their owners of good regular rental income, with millions visiting Costa Del Sol each year for their holidays, particularly within the hotspots of Marbella, Estepona, and Málaga.

Reasonable Price

The city offers good value for money as house prices are relatively affordable compared to other high-end Mediterranean destinations.

Long-Term Appreciation

Over the years, the Costa del Sol property market has taken full development in the wake of increasing foreign demand and a buoyant tourism sector.

Global Connectivity

Málaga’s international airport connects the region to major cities worldwide, ensuring easy access for both residents and tourists.

Can British people buy property in Costa del Sol?

Yes, Brits, like all other foreigners, are not restricted from buying property in Costa Del Sol. The Spanish government highly encourages foreign investments. One of the lucrative visa options to acquire residency status is the Golden Visa.

Buying property on Costa del Sol is not particularly complicated for foreigners. Real estate is pretty well-structured in the region, and plenty of agencies are prepared to provide help for expats.

While there are no particular legal obstacles to foreigners, a number of issues may come up including Spanish mortgage requirements. Most require large deposits to gain financing and access to a local mortgage may not be available without a Spanish bank account. With careful planning and expert advice, however, these can be overcome.

Finding a House in Costa Del Sol

The elaborate infrastructure that supports real estate in this region makes the task of searching and acquiring property in Costa Del Sol easy. A number of prestigious agencies deal in listing new developments, resale homes, and even luxury properties.

Popular platforms to start your search include:

• Fotocasa

• Idealista

• Kyero

For foreign buyers, it helps to work with bilingual real estate agents who understand both the local market trends and what is particularly important for expats. Online listings are an excellent starting point, but nothing beats actually going to see properties as the best way to determine value and suitability.

From Marbella down to Fuengirola, on to Nerja, those coastal towns are in high demand because of their proximity to beaches, amenities, and entertainment, while Ronda and Mijas are inland towns that are peaceful, allowing breathtaking landscapes, giving them a more leisurely pace of life.

Upscore’s Benefits

Upscore’s Finance Passport was designed to make the mortgage process easier for foreign buyers:

• Diverse Lenders: Discuss several mortgage options with various local lenders and grab the most attractive offer for your Costa Del Sol property.
• Remote Application: Apply for your mortgage online from anywhere in the country.
• Personalised service: You will be allocated an expert agent who will take care of you throughout the process.
• Free to Use: Upscore does not charge anything from the buyers. If you secure a loan, we take a commission from the lender – so it wouldn’t be an additional cost to the consumer.

FAQs

Can you Rent Out Properties in Costa Del Sol?

Yes, property letting is deeply rooted in Costa del Sol. With its popularity amongst tourists, it creates a good demand for a vacation rental, especially in summer months.

Do the Real Estate Prices Increase in Costa Del Sol?

Because of desirability and strong demand from foreign buyers, the market in Costa Del Sol tends to appreciate long-term with occasional fluctuations.

Does One Need a Bank Account in Spain to Buy Property?

Although not a necessity, opening a bank account in Spain would definitely facilitate the transaction and aid in obtaining a mortgage from local lenders.

How Much are Property Taxes in Costa Del Sol?

The property taxes of Costa Del Sol include the transfer tax, which is 6-10% of the purchase price, and annual taxes include IBI, or the local property tax. There might be some additional fees for non-residents.

Would it be Possible to Apply for Residency if the Property is Under €500,000?

No, the minimum investment limit is €500,000. Properties under this value can still be purchased, but without residency benefits.