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:Â Complete buying costs guide
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: 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: Â Full comparison
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.
