Buying a home on the Costa del Sol: Your Real Estate Essential Guide

Here´s a quick guide to what´s happening and how it happens when you buy a home on the Costa del Sol. I cover some market trends

1. Real Estate Prices Are Still Rising — But Not Everywhere

Málaga and Marbella remain the most searched—and the most expensive—but there are still pockets of relative value. Areas like Coín, Manilva, Casares Playa, and parts of Torre del Mar offer more space for the money and less competition. Buyers with flexibility can often skip the feeding frenzy. However, the inland bounce is already taking place, so get in sooner rather than later.

Check out my article on the housing crisis to understand why this is not a bubble and prices won't be going down anytime soon here.

2. Legal Steps: Clean, Clear, and Worth Doing Right

A common question is, “Do I need a lawyer to buy property in Spain?”

Yes. Always. Preferably one who isn’t also representing the seller or developer. The legal fee is 1% and will be the same whether you go for a small or big firm, so go for the best.

You’ll also need an NIE (tax ID) and a Spanish bank account. Power of attorney is highly recommended if you won't be here for the whole process.

There are two sides to the coin when buying in Spain. The upside is that it is one of the safest places to buy property. Once you have put your reservation fee down with your reservation contract, the property is officially agreed, under contract, and off the market. Then it is down to the due diligence with the lawyers.

On the downside, be prepared for bureaucracy. Spain moves slower than you're used to, especially in the summer months and over holidays. Consider bureaucracy the initiation into life here or the price to live in a relative paradise.

3. Expect to Pay 10–13% on Top of the Sale Price

Many first-time buyers overlook the extras. These include transfer tax (7% for resale and 10% for new developments), legal fees, notary, registry, and possible mortgage setup costs. If a property is advertised at €600,000, budget closer to €660,000-675,000. This surprises more buyers than you'd think.

4. If You’re Financing, Get Pre-Qualified First

Mortgages for non-residents are available—up to around 70%. Pre-qualification not only helps you understand your budget; it also shows sellers you’re serious in a fast-moving market. We can recommend independent brokers who work with international buyers and speak your language.

5. Short-Term Rental Rules Are Changing

Google Trends shows a spike in queries like “Can I Airbnb my Spanish property?” In Andalucía, the rules are tightening. New tourist licenses are now limited in many municipalities, and some zones are at risk of being capped entirely. If rental income is part of your plan, make sure you inform your agent and ensure your lawyer checks with the community, which now has a majority rule on rentals.

6. A Golden Visa Isn’t the Only Option

The golden visa may have ended, but it’s not the only route. More digital nomads are applying under the new remote worker visa, which has lower income thresholds and fewer strings attached. Others opt for the non-lucrative visa route. A lawyer will advise you on the best visa for your situation.

7. Understanding the Local Market

The Costa del Sol has a diverse real estate market. From luxury villas to affordable apartments, there is something for everyone. Understanding the local market trends can help you make informed decisions.

8. The Importance of Location

When choosing a property, consider the location carefully. Proximity to amenities, schools, and transport links can significantly impact your quality of life. Areas like Fuengirola and Benalmádena are popular for their vibrant communities and accessibility. Marbella is perenially popular and areas like Casares and Manilva are becoming hotspots of new build development while the resale properties are still fairly well priced.

9. Cultural Considerations

Living in Spain means embracing a different culture. The lifestyle is relaxed, and the community spirit is strong. Engaging with locals and participating in community events can enhance your experience. Be ready for your local supermarket to suddenly be closed on a Sunday which gives you plenty of time to participate in a tardeo (the time spent on a weekend afternoon eating, drinking and socialising with friends) You can be surprised by the additional paperwork needed and the practise of making an appointment just to get an appointment - the intricacy of Spanish bureaucracy is legendary but consider a baptism of fire or an initiation to live in a country which I subjectively say has one of the highest qualities of life!

10. Final Thoughts

The bottom line? Buying here can be a smart move, but make sure you are checking in with your agent and clearly communicating what you need and want from your home. The market is competitive, the rules are shifting, and good advice makes all the difference.

Want to work with me? Reach out at tanya@secretcostadelsol.com.