Buying Property on the Costa del Sol: The Complete 2026 Guide
By Dmitry Mateshin, Founder
How foreign buyers purchase on the Costa del Sol: the steps, the taxes, the real costs and the checks that protect you.
Buying on the Costa del Sol follows the same national process as anywhere in Spain, and it is open to foreigners on the same terms as Spanish citizens. What changes from one purchase to the next is the paperwork, the tax that applies to your type of property, and how well the checks are done before money changes hands. This guide walks through all three in the order you will meet them.
Can foreigners buy property here?
Yes. Spain places no nationality-based restrictions on owning property, so EU and non-EU buyers purchase on the same footing. The one document you cannot skip is the NIE (Número de Identidad de Extranjero), the tax identification number every foreign buyer needs before signing anything. Allow some weeks to obtain it, and start early: it is the most common cause of avoidable delay.
Residency is a separate question. Spain stopped accepting new Golden Visa applications from 3 April 2025, so a purchase no longer grants residency by itself. We cover what changed in Golden Visa: what ended and what remains.
The buying process, step by step
The sequence is consistent, and knowing it makes the whole purchase calmer.
- Get your NIE and, usually, open a Spanish bank account. You will need the account to complete the purchase.
- Define your brief. Budget, area, property type and how you will use it (main home, second home, rental, investment).
- View and shortlist. Visit in person where you can, with an agent who knows the specific urbanisation and not only the town.
- Instruct an independent lawyer before you pay any deposit. Independent means not chosen by the seller or developer.
- Request the nota simple from the Land Registry. It shows the registered owner, the property's description and any mortgages, embargoes or charges attached.
- Reserve and sign the private purchase contract, normally with a deposit, once the checks are clean.
- Sign the deed (escritura) in front of a Spanish notary and pay the balance.
- Register the property in your name at the Land Registry and set up utilities, community fees and insurance.
Taxes: resale versus new build
What you pay depends on whether you buy a resale home or a new one from a developer.
Resale property pays Property Transfer Tax (ITP), which is paid by the buyer. In Andalusia the general rate is 7%, calculated on the price you pay or on the administration's reference value if that is higher. On a €500,000 purchase, 7% is €35,000. Reduced rates exist, for example 6% for a main residence valued up to €150,000 and lower rates for certain groups, but each comes with conditions that rarely fit a second home or an investment.
New build from a developer pays VAT (IVA) at 10% on residential property, plus Stamp Duty (AJD) at the general Andalusian rate of 1.2%. ITP does not apply in that case.
What does it really cost?
Taxes are the largest additional cost, but not the only one. Budget for the following on top of the price:
- Notary and Land Registry fees. Both follow official tariffs and depend on the property's value.
- Legal fees. These are not regulated, so ask for a written quote at the start.
- Nota simple, NIE and smaller administrative costs. Modest, but they add up.
- Valuation and arrangement fees if you take a mortgage.
- Annual costs after purchase: local property tax (IBI), community fees for urbanisations, insurance and utilities.
Most estimates for Andalusia land between roughly 10% and 13% above the purchase price, and a little higher once mortgage costs are included. The exact figure depends on the property type, the value and your circumstances, so ask for a full cost breakdown before you make an offer.
Mortgages for non-residents
Spanish banks lend to non-residents, but on stricter terms than for residents. Expect a loan of around 60% to 70% of the property's value, calculated on the lower of the purchase price and the bank's valuation. In practice that means a deposit of 30% to 40% plus all transaction costs in available funds.
Documentation is heavier than for a resident, because the bank cannot check your income against Spanish records. Plan for the process to take weeks rather than days, and have the mortgage deed reviewed by your lawyer as carefully as the purchase contract.
The checks that protect you
Most problems in Spanish purchases trace back to checks that were skipped, not to the system itself. Before you commit, make sure your lawyer has:
- Confirmed through the nota simple that the seller is the registered owner and that there are no unexpected charges.
- Checked that the registry description matches the cadastral record and the property as it stands.
- Verified the planning and licensing status, including any coastal-law restrictions for properties near the sea.
- Confirmed community and tax arrears are paid, since debts attach to the property.
- Ensured the energy performance certificate is in place.
- Arranged the 3% retention if the seller is a non-resident: the buyer withholds that share of the price and pays it to the tax authority on the seller's behalf, or becomes liable for it.
The best first step is a clear brief and a realistic budget that includes costs. From there, the right property comes down to location, building quality and how you plan to use it.
At Vertex we work with a curated collection that combines our own listings and the wider market. Browse the collection, or tell us what you are looking for through How We Work and we will come back with a shortlist.
This guide is general information, not legal or tax advice. Rates and rules change; confirm current figures with your independent lawyer or gestor before you commit.
