Frequently Asked Questions

What does it really cost to buy property on the Costa del Sol?

Budget 10–13% on top of the purchase price for taxes and fees. For resale properties: ITP transfer tax at 7% — Andalusia’s rate, the lowest in Spain. For new builds: VAT at 10% plus stamp duty at 1.2%. Add notary, land registry and legal fees of approximately 2–3%. One important note for US buyers: closing costs in Spain are significantly higher as a percentage than in the US — budget for this from the start, not after you fall in love with a property.

More information:  Complete buying costs guide

Is the Costa del Sol a good property investment in 2026?

The data is strong. Málaga province recorded price growth of up to 13% year-on-year in prime areas, with gross rental yields of 5–7% in key locations. Supply consistently falls short of structural demand, which continues to support prices. Americans are now one of the fastest-growing buyer groups, paying on average 29% above the foreign buyer average — a reliable signal of market confidence from the most analytical buyer demographic.

Why invest in the Costa del Sol

Marbella, Estepona or Málaga — where should I buy?

Marbella: highest price per m², luxury lifestyle, Golden Mile, Puerto Banús — best for prestige and capital preservation. Estepona: the Garden City, strongest new-build pipeline, better value, family-friendly — best for long-term growth. Málaga city: tech hub, highest rental yields, most urban — best for buy-to-let investors. The right answer depends entirely on whether you prioritise lifestyle, ROI, or both.

More information:  Full comparison

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Questions specific to your situation

Your nationality and residency status change the rules. Find the answers that apply to you.

For UK Buyers — Post-Brexit rules, 90-day limit, rental tax, surcharge
Residency options, inheritance tax allowance, mortgage with UK income and the 100% surcharge proposal.

For US Buyers — Visas, Golden Visa abolished, IRS obligations, NIE
Digital Nomad Visa income requirements, US-Spain tax treaty, Airbnb rules and step-by-step buying process.

Information correct as of May 2026. Always consult an independent tax and legal adviser for your specific situation.

Buying Property in Spain — Questions UK Buyers Ask in 2026

Post-Brexit buying, residency and tax — what has actually changed.

How does the 90/180-day rule affect me as a UK property owner in Spain?

Post-Brexit, UK citizens are treated as non-EU nationals and are subject to the Schengen 90-day rule: a maximum of 90 days in any 180-day rolling period across the entire Schengen area. Owning a property in Spain does not extend this right. Exceeding 183 days in a calendar year triggers Spanish tax residency, with implications for your worldwide income including UK pensions and assets. Many UK buyers structure their year deliberately to stay below both thresholds. A Digital Nomad Visa or Non-Lucrative Visa removes the 90-day cap and must be obtained separately from your property purchase.

More Information: Beckham Law UK Citizens Complete Guide (2026)

Does the proposed 100% property surcharge apply to UK buyers?

The proposal — still under legislative debate as of Q2 2026, not yet law — would apply a surcharge on property purchases by non-EU, non-resident buyers. Post-Brexit, UK citizens fall into the non-EU category and could be affected if the measure becomes law in its current form. This has notably increased interest from EU buyers, particularly Germans, who are explicitly exempt. If you are considering a purchase, this is a reason to act on a clear timeline rather than wait indefinitely. We are currently monitoring the legislative status.

More Information: The 100% Tax Surcharge on Foreign Buyers

What tax rate applies to my Spanish rental income as a UK owner?

This is one of the most important post-Brexit tax changes for UK property owners in Spain. As a non-EU, non-resident owner, UK citizens are now taxed at 24% on gross Spanish rental income — not the 19% rate that applies to EU residents. This applies to all rental income from Spanish property, whether short-term tourist lets or long-term rentals. EU-resident owners benefit from deducting eligible expenses before calculating tax; UK owners cannot. The difference is material and must be factored into your rental yield calculations from the outset. A Spanish tax adviser with experience in UK non-resident clients is essential.

More Information: Full UK Citizens Guide

Can I get a Spanish mortgage with UK income — and how much deposit do I need?

Yes — Spanish banks do lend to UK buyers, but post-Brexit conditions apply. Non-resident buyers typically receive a maximum of 60–70% LTV (loan-to-value), meaning you need a minimum 30–40% deposit. Add to that the 10–13% in purchase taxes and fees, and total upfront capital required is typically 40–50% of the purchase price. Spanish banks assess UK income but apply stricter criteria than for EU residents. GBP/EUR exchange rate risk is a real consideration — both on the purchase price and ongoing mortgage repayments if your income remains in sterling. Many higher-net-worth UK buyers choose to purchase cash and consider refinancing separately to optimise capital deployment.

What is the 99% inheritance tax allowance in Andalusia — and does it apply to UK buyers?

Andalusia offers a 99% reduction on inheritance tax for direct family members (spouses, children, parents) — which effectively eliminates inheritance tax for most family transfers of Spanish property. This applies to UK buyers and their families regardless of nationality or residency status. It is one of Andalusia’s most significant advantages over other Spanish regions (Catalonia, Valencia, the Balearics) and a major factor for older UK buyers doing estate planning. The allowance applies to the Spanish property itself; UK estate and inheritance tax rules continue to apply to your worldwide assets as a UK domicile. A cross-border estate planning adviser is strongly recommended for UK buyers with significant assets in both countries.

More Information: Taxes in Spain and Andalusia Complete Guide

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Looking for general information on costs, areas and investment? Taxes and Costs Guides – Where to Buy Guides – See General FAQ

Information correct as of May 2026. Always consult an independent tax and legal adviser for your specific situation.

Buying Property in Spain — Questions US Buyers Ask in 2026

Residency, taxes and buying as an American — the 2026 picture.

Can I still get residency by buying a property in Spain?

No. The Golden Visa linked to property investment was officially abolished in April 2025. Buying property in Spain no longer grants any residency rights. Americans in 2026 are pairing property purchases with one of two visa routes: the Digital Nomad Visa, which requires approximately €2,849/month in provable remote income for a single applicant, or the Non-Lucrative Visa, suited to retirees or those with sufficient passive income or savings. Both must be applied for separately through the Spanish consulate before arriving in Spain.

More Information: US buyers: Taxes, Residency and Visa Guide

How do US taxes work alongside owning property in Spain?

US citizens are taxed on worldwide income regardless of where they live — the IRS obligation does not disappear when you buy in Spain. The US–Spain tax treaty prevents double taxation, and mechanisms like the Foreign Earned Income Exclusion and Foreign Tax Credits typically apply. Spanish rental income must be reported on both your Spanish and US tax returns. FBAR and FATCA reporting obligations apply to Spanish bank accounts above the relevant thresholds. This is manageable — but it requires a tax advisor with specific US expat and Spanish property experience from the outset, not as an afterthought.

More information: Spain Taxes Complete Guide for Buyers  and  US buyers: Taxes, Residency and Visa Guide

What are the exact income requirements for the Digital Nomad Visa in 2026?

The Digital Nomad Visa (DNV) requires demonstrating stable remote income from clients or an employer outside Spain. The 2026 thresholds are: €2,849/month for a single applicant, plus approximately €916/month for a spouse or partner, and €305/month per dependent child. Income must be provable through contracts, invoices, or employer letters — typically covering the last three months minimum. A maximum of 20% of your income may come from Spanish-based clients. The visa is initially granted for one year, renewable for two-year periods, and leads to long-term residency eligibility. Applications are processed through the Spanish consulate in your home state — Miami, Los Angeles and New York are the most active for US applicants.

How do I get my NIE number from the United States?

The NIE (Número de Identificación de Extranjero) is your Spanish tax identification number — required for every stage of the buying process, from opening a Spanish bank account to signing at the notary. From the US, you have two practical routes. The first is applying directly through the Spanish consulate in your jurisdiction (Miami, Los Angeles, New York, Chicago, Houston or San Francisco) — appointments can be slow, often several weeks out. The second — and faster for most buyers — is granting Power of Attorney to your Spanish lawyer, who can then obtain the NIE on your behalf without you needing to be present in Spain. Most buyers completing a purchase remotely use this route. Your NIE does not expire and does not need to be renewed.

More Information: Step-by-step buying guide.

What are the new Airbnb and tourist rental rules in 2026?

The short-term rental landscape in Andalusia has tightened significantly. Every tourist rental property now requires a Registration Number — mandatory for listing on any platform including Airbnb, Vrbo and Booking.com. New tourist rental licences have been suspended or severely restricted in Málaga city centre and parts of Marbella. Outside these zones, licences remain available but require the property to meet specific habitability and safety standards. Additionally, a 2024 court ruling confirmed that owners’ associations (Comunidades de Propietarios) can ban short-term rentals with a 3/5 majority vote — making it essential to check the community statutes before purchasing with rental intent. Pre-licensed properties command a significant premium and are increasingly scarce in high-demand areas.

More Information: Andalusia Holiday Rental Guide

Looking for general information on costs, areas and investment? Taxes and Costs Guides – Where to Buy Guides See General FAQ

Information correct as of May 2026. Always consult an independent tax and legal adviser for your specific situation.