Published September 2026 · Data verified September 2026
The questions international buyers ask most often about buying in Spain, on the Costa del Sol and the Costa Blanca. Each answer links to the article that carries the full working.
Costs and taxes
What does it cost to buy, on top of the price? Between 9.5% and 10.5% on a resale and 13% to 14% on a new build. The difference is tax: resale carries 7% transfer tax in Andalusia, a new build carries 10% VAT plus 1.2% stamp duty. On a €400,000 resale that is €38,000–42,000, paid from your own funds — a mortgage does not cover it. Add €15,000–20,000 to furnish, and 0.5–1% if you borrow. Full breakdown in our costs and taxes guide.
Do the costs differ on the Costa Blanca? Yes. Transfer tax there is 9% below €1M and 11% above, against 7% in Andalusia, and stamp duty on a new build is 1.4% against 1.2%. The practical budget is about 11% on a resale and 13.5% on a new build — full breakdown in our Costa Blanca costs and taxes guide.
What does it cost to own each year? Roughly 1% of the property's value, covering IBI, imputed income tax, community fees, waste tax, insurance and basic utilities. On a €400,000 apartment that is about €3,750–4,350. Household costs sit on top: our cost of living guide has the full picture.
Do foreign buyers pay a higher purchase tax? No. Nationality does not change the purchase tax. A proposed surcharge on buyers from outside the EU was announced in January 2025, has never been debated or voted on, and does not exist in law. The current position is in our non-EU buyers guide.
If I negotiate a good price, do I pay less transfer tax? Not necessarily. Transfer tax is charged on the higher of the price paid and the Cadastre's reference value. Buy below the reference value and the tax is still calculated on that value. Check it before you set your offer — the mechanism is in our guide to reading Spanish property prices.
What do I pay when I sell? Capital gains tax at 19% on the gain, with acquisition costs and documented improvements deductible. The buyer withholds 3% of the price for the tax office, which you reclaim if your actual liability is lower. Plusvalía municipal and agency fees of typically 5% plus VAT are also the seller's.
What happens to the property when I die? You can choose the law of your own nationality in a Spanish will, which sets aside Spain's forced shares for children. Tax is set by the region the property sits in: Andalusia gives a €1,000,000 reduction per close heir and 99% relief, the Valencian Community €100,000 and 99%. Heirs have six months to file. Full detail in our inheritance and succession guide.
What will it cost me to sell again? Capital gains tax at 19% on the gain, with the buyer withholding 3% of the price at completion and four months to file the return that settles the difference. Agency fees run 3–5% plus VAT and plusvalía municipal is the seller's. A full worked example is in our guide to selling as a non-resident.
Is there wealth tax, and does it apply if I stay non-resident? It applies either way, but the base differs. A Spanish resident is assessed on worldwide assets; a non-resident only on assets held in Spain, so a holiday home counts. A €700,000 exempt minimum applies to both, which puts a single property below that figure outside the tax entirely. Above it, Andalusia relieves the regional charge in full and the Valencian Community charges nothing below €2,000,000. A separate national levy applies above €3,000,000 of Spanish assets, and the regional reliefs do not reduce it. Most buyers pay nothing.
The process
Does the Costa Blanca work the same way? The legal steps are identical; the taxes differ. Transfer tax there is 9% below €1M and 11% above, against 7% in Andalusia, and stamp duty on a new build is 1.4% against 1.2%. Stage by stage in our Costa Blanca buyer’s journey.
How long does it take? Eight to twelve weeks from a serious viewing to the keys on a resale, most of it due diligence. A new build runs to the developer's delivery date instead. Stage by stage in our buyer's journey guide.
Do I have to be in Spain? No. A power of attorney granted to your lawyer covers the NIE, the bank account and the completion itself. Most non-resident purchases we handle complete remotely.
What is a NIE and how do I get one? Your Spanish tax number, required to buy anything. Three routes: a police station in Spain, a Spanish consulate at home, or your lawyer under power of attorney. The government fee is €12–16. The number never expires; the bottleneck is appointment availability, from a day to over a month.
Do I need a lawyer? Yes, an independent one instructed by you rather than by the agent or developer, at roughly 1% plus VAT. The notary confirms the deed is lawful. The notary does not check whether the community statutes prohibit tourist letting, whether the occupancy licence exists, or whether the seller owes three years of community fees.
What is the contrato de arras? The private contract that follows due diligence. You pay 10% of the price. The standard form, arras penitenciales, prices withdrawal both ways: you lose the deposit, or the seller returns double. Confirm which form you are signing, because other types carry no such protection.
What gets checked before I commit? Title and charges at the land registry, community debts, planning and occupancy status, the community statutes and minute book, the tourist licence position, and utility and IBI receipts. On a new build, add the bank guarantee covering your stage payments and the ten-year structural warranty.
What documents will I be asked for? Identity, and evidence of where the purchase money came from and how you built your wealth. The bank, your lawyer, the seller's side and the notary each ask separately. Assemble one complete pack — the full list is in our proof of funds guide.
Mortgages
Can a non-resident borrow in Spain? Yes. Normally 60–70% of the price, over 25 to 30 years, with the payment capped near 30–35% of net income. The loan is calculated on the lower of the price and the bank's valuation.
Fixed or variable? In September 2026 fixed rates run 2.55% to 3.55%, and the twelve-month Euribor averaged 2.95% in August. A variable at Euribor plus 0.79% costs about 3.74% — above most fixed offers. Fixed is currently cheaper, which reverses the assumption most buyers arrive with. Detail in our mortgage guide.
What does taking a mortgage cost? Less than buyers expect. Spanish law moved stamp duty, the notary, the registry and the processing agent to the lender in 2019. You pay the valuation, €300–600, and any arrangement fee, from zero to about 1%.
How long does approval take? Six to ten weeks including a ten-day reflection period fixed by law before signing, which cannot be shortened. Build it into the completion date.
Letting the property
Can I let it to tourists? It depends on three things, and you need all three: the municipality issuing registrations, the property holding or being able to obtain one, and the building's statutes permitting lodging use. Málaga city is closed to new registrations until 2028. Position by town hall in our rental rules guide.
Do the letting rules differ on the Costa Blanca? Yes, in two ways that matter. The town hall must certify that tourist use is compatible with the address before a property can be registered, and a Valencian registration expires after five years. Municipality by municipality in our Costa Blanca rental rules guide.
A listing says "with tourist licence" — is that enough? No. Since April 2026, a registered statutory ban on lodging use in the building overrides a valid licence, with no vote required from the neighbours. Read the statutes and the minute book before you value the licence.
What does it actually yield? Short-term tourist letting runs 5.5–10.1% gross and 2.8–3.5% net after costs and tax. Long-term runs 4–6% gross and 2.5–3.5% net. A well-selected property against clear criteria targets around 4.5% net. Figures by market in our rental yields analysis.
What tax do I pay on rental income? EU and EEA residents pay 19% on net income with costs deductible. Residents of countries outside the EU pay 24% on gross, with no deductions. It is set by tax residence rather than nationality.
What if I cannot get a licence? Mid-term letting, from two to eleven months, needs no tourist licence, reaches around 80% of the tourist net at far lower operating cost, and the tenant pays the utilities. Model the fallback before you buy.
Choosing where
Costa del Sol or Costa Blanca? The Costa Blanca is meaningfully cheaper — an average transaction price of €1,978/m² and an average purchase of €203,488, against about €3,000/m² in Málaga province — with flatter towns and large established retiree communities. The Costa del Sol has the larger airport network, a denser private healthcare cluster and more year-round urban services. Both compared in our Costa Blanca versus Costa del Sol analysis.
What do international schools cost? Published tuition runs from €2,000 to €28,255 a year per child, with extras adding €4,000–6,000 on top. Two children at a mid-market school cost roughly €39,000 a year. Fees for 36 schools on both coasts are in our guide to international school fees on both coasts.
Which part of each coast? Both are chains of distinct markets, and the spread within a coast is wider than the gap between them. On the Costa del Sol, achieved prices range from €2,114/m² in Vélez-Málaga to €4,582/m² in Marbella. Stretch by stretch, with prices, letting rules and access, in our Costa del Sol geographic guide and our Costa Blanca geographic guide.
Resale or new build? Resale is 85.4% of purchases in Málaga province, costs 3.5 points less to buy, and can carry a transferable tourist licence. New build gives current energy performance, facilities that raise the letting rate, a ten-year structural warranty and nothing to do on arrival. Both routes priced in our resale or new build guide.
Why do asking prices and actual prices differ so much? Asking prices in Málaga province averaged €4,272/m² against €3,019/m² at the notary. The gap is not a discount: deed data includes cheap inland stock and off-plan agreed years earlier, while portals over-represent expensive coastal listings. Use deeds to value a property and asking prices to understand what you are negotiating against.
Are the square metres in a listing real? They are real, but three different measures circulate and listings rarely say which. Usable floor area runs roughly 75–85% of built area, so the same apartment can be quoted with a price per square metre 18% apart depending on the basis. Ask which one before comparing two properties.
Living in Spain
Does buying give me residency? No. The €500,000 investment visa closed to new applications on 3 April 2025. Permits already issued keep their validity. Ownership evidences accommodation, which supports an application, but creates no right of residence.
How long can I stay without residency? Ninety days in any rolling 180-day period across the Schengen area, for most non-EU nationalities. That covers holidays and long weekends. It does not cover wintering in Spain from October to April.
What residency routes exist? The non-lucrative visa for retirees and people on passive income, at €28,800 a year plus €7,200 per dependant with private health cover; and the digital nomad visa for remote workers, at about €2,850 a month. EU and EEA citizens simply register locally.
When do I become a Spanish tax resident? At 183 days in a calendar year. From that point Spain taxes your worldwide income, including pensions paid from abroad, and you file a Spanish return annually. Incoming workers may qualify for the Beckham Law regime, which caps Spanish employment income at 24% for six years.
What about my pension? State and workplace pensions become taxable in Spain once you are resident. Government service pensions stay taxable at home, though Spain counts them when setting the rate on your other income. A tax-free lump sum in your own country is fully taxable in Spain if taken after you become resident — plan it before the move. Detail in our retirement guide.
How does healthcare work? State pensioners from the UK and the EU register an S1 and get the full public system free, funded by their home country. Everyone else uses the convenio especial at €60 a month under 65 and €157 from 65 — available after twelve months of registered residence and excluding prescriptions — or private insurance, which runs €180–300 a month or more from age sixty. Full comparison in our healthcare guide.
Do I have to declare assets I hold abroad? Spanish tax residents holding more than €50,000 abroad in any one of three categories — accounts, investments and pensions, or property — file an annual information return between 1 January and 31 March.
Risks
Should I worry about squatters? Spain recorded 16,426 complaints of illegal occupation in 2024 across more than 27 million homes, and 43% of them were in Catalonia. A managed apartment in a gated community is a poor target. Since April 2025 owners have a fast-track court route. What matters is how quickly an occupation would be noticed: the prevention that works, and what to do in the first 48 hours, is in our guide for owners.
What if the valuation comes in below the price? The loan is calculated on the valuation, and the shortfall comes from your own funds. On a €400,000 purchase with a 70% loan, a valuation at €370,000 reduces the loan by €21,000. Have the mortgage assessed before the deposit contract.
What most often delays a completion? Money that arrived in the account faster than the paperwork explaining it. A large deposit shortly before completion with no document behind it, payment from someone else's account, or missing sworn translations.
When should I walk away? When the statutes block what you bought it for. When the community accounts show a special assessment nobody mentioned. When the registered surface does not match the advertised one. When you cannot get a straight answer about the licence.
Working with Directimo
How is a buyer's agent different? Listing agents in Spain are contracted by the vendor and paid a percentage of the vendor's price. Their duty and their incentive both run the other way. Directimo represents the buyer, never the seller.
What does Directimo cost me? In the large majority of cases our commission comes from the seller's side, out of the standard 5% a Spanish sale already carries, so buyer representation costs you nothing extra. A fee of up to 2.5% applies only in specific situations — some resale transactions involving several agents, auction purchases and special projects — and it is agreed with you in advance.
What does that produce? The properties we source average 13.5% below area market prices — the result of finding the right property and valuing it against deed comparables before anyone discusses price. Our database covers more than 650 new developments and 7,500 resale properties across both coasts. We have completed more than 1,000 transactions since 2011, totalling over €300M in property sold.
What is actually included? Defining the criteria, sourcing on and off market, valuing against deeds, running the due diligence before the offer, negotiating on your side, and coordinating the tax number, the bank account, an independent bilingual lawyer, the notary and the handover — remotely from start to finish.
Where do I start? directimo.com/advisory-call
Sources. Agencia Tributaria and Junta de Andalucía — transfer tax, VAT, stamp duty, non-resident income tax, capital gains and the withholding on sale. Consejo General del Notariado — deed prices and transaction data, Málaga and Alicante provinces, 2026. Idealista — asking prices, July 2026. INE — registered tourist dwellings, Málaga province, May 2026. Junta de Andalucía and municipal ordinances — tourist registration position, September 2026. Spanish Supreme Court, April 2026 — community statutes and lodging use. Banco de España and the European Central Bank — Euribor and policy rates, August 2026. Spanish lender offers to non-residents, September 2026. Ministerio del Interior — recorded complaints of illegal occupation, 2024. Spanish legislation ending the investor residence permit, in force 3 April 2025, and current non-lucrative and digital nomad requirements. Directimo Costa del Sol and Costa Blanca Market Reports, September 2026, and Directimo transaction record.
Method. Every figure here is summarised from the article linked beside it, where the calculation and its limits are set out in full. Purchase-cost percentages are stated on the deed price. Net yields apply full operating costs and tax and are unlevered. Rates, thresholds and municipal licence positions change frequently and are stated as at September 2026.
This guide is market research, not legal, tax, mortgage or immigration advice. Your position depends on your nationality, your tax residence and the specific property, and should be confirmed by an independent lawyer before any offer.