Buying property on the Costa del Sol and beyond
It’s the most popular coast in Spain among Your Overseas Home buyers, and easily the most accessible. And while it may have a reputation for being glitzy there are plenty of affordable areas too.
The Costa del Sol stretches for 150 kilometres of the Andalusian coastline and includes such popular resorts as Marbella, Mijas and Fuengirola. It also includes the stylish city of Málaga.
Why buy property in the Costa del Sol
The name “sunshine coast” is surely enough to entice international buyers, especially those from chillier locations in Northern Europe. With 325 days of sunshine a year this stretch of southern coastline lives up to its name.
Buying a property on the Costa del Sol offers access not just to sun-drenched Mediterranean beaches, but also a wealth of shopping options, Michelin-starred restaurants and award-winning golf courses.
The Costa del Sol has a welcoming expat community, year-round, to welcome retirees. It can be an active and energetic retirement too, with all manner of sailing and water sports, golf and tennis clubs and even skiing on the doorstep.
Holiday home buyers get the same benefits, and the Costa del Sol is a coast where you can easily pop down for a weekend, with affordable flights into Málaga from all corners of Europe, usually in less than three hours.
Is property in the Costa del Sol a good investment?
A property on the Costa del Sol has the potential to be a fantastic investment opportunity. Firstly, it is located in Andalusia, which is one of the most tax efficient autonomous regions in Spain. Transfer tax is levied at 7% for a resale property (VAT is 10% for a new build).
However, if relying on rental income, at the start of 2024 the regional government introduced new rules around short-term rentals. It gave local councils the power to regulate the number of tourist properties and perform inspections. There are also stricter rules on the property is maintained, but renting out is still possible.
As the Costa del Sol enjoys a lengthy summer season, you will be able to keep your doors open to sun-seekers for longer than you would with a home on the northern coastline.
There are also options for longer term rentals, especially in the off-season, where visitors from the UK might stay for the whole winter in your property.
The Costa del Sol’s property market
Property is incredibly varied. You can find an older, traditional property in a white-washed village (pueblo blanco) or a luxury property in an upmarket resort like Marbella, and there are options at every price point in between.
Drive a little inland and you can find characterful village homes in need of some TLC for just €50,000. Similar properties that have already been renovated tend to sell for €100,000.
While the most affordable property is to be found inland, focusing your property search on quieter stretches of coastline will see your budget go further. If you are after a small apartment within walking distance of the sea, you will need upwards of €200,000, while the minimum for a villa is €500,000.
The Costa del Sol is the perfect place to look if you’re interested in a new-build property. Large scale developments often include swimming pools, gyms, landscaped gardens and social areas too.
The weather in the Costa del Sol
The weather is one of the Costa del Sol’s major selling points. It is the most reliable and consistently warm in all of mainland Spain. July and August are the hottest months with an average daily maximum of 31°C, and you can enjoy temperatures in the 20s from March to October.
Even the coldest month of the year, January, experiences highs of 17°C. However, during heatwaves, Costa del Sol has seen temperatures soar to 40°C. The sea breeze can take the edge off the heat.
How to get to the Costa del Sol
The Costa del Sol is served by Málaga airport, one of Spain’s busiest and best airports. From there, there are good train services for most the coast. Málaga airport is eight kilometres from the city.
Where to buy in the Costa del Sol
Málaga
Málaga is the capital city of the Costa del Sol and the wider Málaga province. It is a vibrant, fun city with a huge artistic scene, as it is the birthplace of Pablo Picasso. Plus, it’s a foodie haven, with tasty tapas at every corner and Michelin restaurants. Málaga city has sixteen of its own beaches, including Playa La Malagueta, just ten minutes from the centre.
Marbella
Marbella is the place to base your hunt for a luxury property, from beautiful villas to new-build penthouses. It is known as a playground for the rich and famous, with a beautiful old town, chic boutiques, and a bustling marina.
Benalmádena
The oldest part of the town, Benalmádena Pueblo, is made up of cobbled streets and pretty, white-washed buildings. In the newer part of town, you’ll find a lively marina, gorgeous natural parks, leisure parks, and of course, stunning beaches.
Mijas Pueblo and Las Cala de Mija
22km south of Málaga is the lovely white village of Mijas nestling in the mountains behind the coast. The climate is pleasant and the views from numerous vantage points, including some good restaurants, are superb. It is hugely popular with international buyers, who adore it for its low-cost, traditional homes.
Fuengirola
Fuengirola is a pretty, relaxed town which became popular in the 1980s and has five miles of wonderful sandy beaches. The Tuesday market is one of the best along the whole coast and on Saturday there is a flea market with around 400 stalls to pick over.
The town’s fishing port of Los Boliches is more traditional with cobbled streets lined with bars and restaurants. If you’re looking to take up a new hobby to make the most of the great weather when you move, don’t miss the wide range of water sports on offer.
Around the Puerto Deportivo, you’ll find more (relatively) high-rise apartments, mixed in with typical Spanish modern homes – perhaps less popular among overseas buyers – and the occasional older-style property. One thing that surprises many is how far inland you can go and still have sea views – looking around areas like Calle del Pensamiento in the Torresol area, prices are lower, but you still have those wonderful views of the blue Mediterranean.
Estepona
Despite its close proximity to the sought-after Marbella, Estepona is quieter in terms of tourists, with a relaxed atmosphere. Full of all the traditional charms of Spain, a highlight is the enormous weekly market, which stretches across the whole harbour. The fishing heritage provides plenty of opportunity to sample locally caught, fresh fish and shellfish.
Nerja
Situated on the eastern end of the Costa del Sol, where it becomes the Costa Tropical, Nerja offers a slightly more laidback lifestyle than its neighbours. It still boasts sun-kissed beaches and water sports. It is famous for its caves, quaint old town and it’s just half an hour from the Sierra Nevada ski resort in Granada.
Steps to buy in the Costa del Sol
- Search online: The Your Overseas Home property portal has a fantastic choice of listings in the Costa del Sol. Determine what you can buy for your budget, as well as a list of features you would like in a home (close proximity to the beach or golf, mountain or sea views). You may want to narrow down your search to specific towns (Marbella, Mijas).
- Form a team of experts. Once you have chosen a handful of properties that tick your boxes, reach out to an estate agent. They will be able to talk through the area and what you are looking for in a home in greater detail. You will also need an English-speaking lawyer to ensure that the purchase is legally secure. Plus, a currency specialist like Smart Currency Exchange can help you to transfer your budget over to the Costa del Sol. You may also want to connect with a financial advisor and a mortgage specialist.
- Book a viewing trip. Once you have your team in place, head out to the Costa del Sol to see your pick of properties. If you haven’t narrowed down to a specific town, check the journey times between each home, it’s quite a large area! If you find the right home, reconnect with your professional team and make an offer.
- Once you have made an offer: If the seller accepts your offer, you will sign a reservation contract and pay a fee to take it off the market. Then, you will sign and pay the deposit, around 10% of the purchase price. As you’ve now committed to buying your dream home, lock in your exchange rate to ensure that you do not lose out to exchange rate changes. Meanwhile, the legal processes will continue.
- Hold the keys in your hand: You will need to sign the sale contract, escritura pública at the notary’s office (or give power of attorney to your lawyer). Finally, pay the balance of the purchase price, minus the deposit you have paid. You must also pay the relevant taxes (ITP), stamp duty, notary fees and legal fees.