A Guide for Americans Buying Property in Spain

Buying Property in Marbella & the Costa del Sol: The Complete Guide for 2026–2027

Marbella and the Costa del Sol continue to rank among the most desirable locations in Europe for international property buyers.

What was once regarded primarily as a second-home and retirement destination has developed into a genuinely international residential market. Buyers now arrive from across Europe, the United States, the Middle East and beyond, attracted by the climate, lifestyle, international schools, connectivity, golf, beaches and an increasingly sophisticated selection of luxury property.

For anyone considering buying in 2026 or 2027, however, understanding the process is important. Spain has a well-established property purchasing system, but taxes, legal requirements, financing and due diligence can differ considerably from those in other countries.

This guide explains the main points buyers should understand before purchasing a property in Marbella or elsewhere on the Costa del Sol.

Why Buy Property in Marbella and the Costa del Sol?

A Truly International Lifestyle

Marbella has evolved far beyond its reputation as simply a Mediterranean holiday destination.

Today it combines established residential communities with luxury resorts, international schools, private healthcare, championship golf courses, beach clubs, fine dining, shopping and excellent sporting facilities.

Areas including Nueva Andalucía, the Golden Mile, Sierra Blanca, La Quinta, Benahavís and Estepona attract both permanent residents and second-home owners.

Málaga has also undergone a significant transformation, strengthening the Costa del Sol's appeal to buyers who want access to a major European city and international airport while retaining the lifestyle of southern Spain.

The result is a market catering to a remarkably broad range of buyers—from families relocating permanently to Spain to investors, retirees and those simply looking for a second home in the sun.

Climate and Quality of Life

Lifestyle remains one of the strongest reasons for buying here.

The Costa del Sol enjoys an exceptionally mild Mediterranean climate, allowing residents to spend considerably more time outdoors throughout the year.

Golf, cycling, tennis, padel, sailing, hiking and beach life can all form part of everyday living rather than simply being holiday activities.

For international families, the region also benefits from a strong network of international schools, private healthcare providers and established expatriate communities.

This combination of climate, infrastructure and lifestyle is difficult to replicate elsewhere in Europe.

Marbella Property as a Long-Term Investment

Property should always be purchased with realistic expectations, and past performance does not guarantee future returns.

Nevertheless, prime areas of Marbella and the western Costa del Sol benefit from one important characteristic: limited supply of genuinely prime locations combined with sustained international demand.

Beachfront property, established gated communities, properties with exceptional views and homes in the most desirable areas cannot simply be reproduced indefinitely.

For buyers considering long-term value, location, construction quality, orientation, views, privacy and scarcity are often more important than simply buying the largest property available for a particular budget.

A good property purchase should therefore work on two levels: it should suit the owner's lifestyle while also remaining attractive to the future resale or rental market.

Understanding the Buying Process in Spain

Foreigners can purchase property in Spain, whether resident or non-resident.

The process normally involves several stages.

1. Obtain an NIE Number

Foreign purchasers require an NIE (Número de Identidad de Extranjero).

This identification number is used for property transactions, taxation and many other administrative procedures in Spain.

It is advisable to start the NIE process early rather than waiting until a property has already been selected.

2. Appoint an Independent Lawyer

Although buyers are not legally obliged to appoint their own lawyer, we strongly recommend doing so.

Your lawyer should represent your interests independently and carry out full legal due diligence before you become contractually committed to the purchase.

Among other matters, the lawyer can verify:

• legal ownership of the property;

• mortgages, debts or other charges;

• planning and licensing position;

• community debts;

• outstanding local taxes;

• consistency between the physical property and registered documentation; and

• contractual terms of the proposed purchase.

This becomes particularly important when purchasing older villas, recently renovated properties, off-plan developments or properties where extensions and alterations have been carried out.

3. Reservation

Once a property and price have been agreed, it is common for the buyer to sign a reservation agreement and pay a reservation deposit.

The property is then normally withdrawn from active marketing for an agreed period while the buyer's lawyer begins the legal checks and prepares for the private purchase contract.

4. Private Purchase Contract

Subject to satisfactory due diligence, the parties generally proceed to a private purchase contract.

The precise payment structure varies depending upon whether the property is a resale or new development and according to the terms negotiated between buyer and seller.

Your lawyer should review and approve the contractual obligations and payment schedule before signing.

5. Completion Before a Notary

The final purchase normally completes before a Spanish notary through execution of the Escritura Pública de Compraventa, or public deed of sale.

The remaining purchase price is settled, ownership transfers to the buyer and the property can subsequently be registered in the buyer's name at the Spanish Land Registry.

How Much Tax Does a Buyer Pay?

This is an area where buyers need accurate and up-to-date advice.

Resale Property in Andalucía

For a typical resale property purchase in Andalucía, the general Property Transfer Tax (ITP) rate applicable in 2026 is 7%, subject to any applicable reduced rates or specific circumstances.

The Andalusian Government has also announced that its proposed 2027 budget will reduce the general ITP rate from 7% to 6.75%. Buyers completing in 2027 should obtain confirmation from their tax adviser or lawyer of the rate actually in force at the date of completion.

New-Build Property

New-build property purchased directly from a developer is generally subject to a different tax structure, principally VAT (IVA) together with Stamp Duty (AJD) rather than resale-property ITP.

The precise tax treatment should always be confirmed before signing because the classification of the transaction matters.

Other Purchase Costs

Buyers should also allow for expenses including:

• legal fees;

• notary costs;

• Land Registry fees;

• mortgage-related costs where applicable;

• banking and international transfer costs; and

• professional or technical inspections where required.

Rather than relying on a generic percentage, buyers should request a detailed purchase-cost calculation based on the specific property, purchase price and whether it is resale or new build.

Mortgages for International Buyers

International and non-resident buyers can obtain mortgages from Spanish banks.

The amount available will depend upon the buyer's residency status, income, existing liabilities, age, financial profile and the bank's valuation of the property.

As a general principle, non-resident buyers should expect Spanish banks to lend a lower percentage of the property's value than they may offer to Spanish residents.

Buyers requiring finance should therefore obtain an early indication of borrowing capacity before committing to a purchase.

It is also important to remember that the bank's valuation does not necessarily equal the agreed purchase price. Lending is normally calculated according to the bank's own criteria and valuation.

Currency Exchange Matters

For buyers purchasing in euros but holding their wealth or income in pounds, US dollars, Swiss francs or another currency, exchange-rate movements can materially alter the final cost of a property.

On a €2 million transaction, even a relatively small movement in the exchange rate can represent a significant amount of money.

Buyers should therefore consider their currency strategy early in the purchasing process rather than waiting until completion.

The Golden Visa Has Ended

One important change international buyers need to understand is that buying property in Spain no longer provides access to the Spanish Golden Visa programme.

Spain ended the investor residency provisions, including the property-investment route, with effect from 3 April 2025.

This means purchasing a €500,000, €1 million or €5 million property does not, by itself, provide a new buyer with Spanish residency.

Existing qualifying visas and certain applications made before the change are subject to transitional provisions, but new purchasers should obtain immigration advice regarding the residency route appropriate to their circumstances.

Property ownership and Spanish residency should therefore be treated as two separate matters.

Choosing the Right Area

There is no single "best" location on the Costa del Sol.

The right area depends upon how the property will actually be used.

Marbella Golden Mile

One of the coast's most established prime residential locations, offering proximity to Marbella, Puerto Banús, beaches, restaurants and some of southern Spain's best-known hotels.

Nueva Andalucía

Particularly attractive to families and golfers, with established residential communities, international schools, restaurants and easy access to Puerto Banús.

Benahavís and La Quinta

Popular with buyers seeking privacy, views, gated communities and golf while remaining within relatively easy reach of Marbella and the coast.

Estepona

Estepona has experienced considerable development and investment and offers everything from beachfront apartments to new residential communities and villas.

East Marbella

Areas such as Río Real, Los Monteros, Elviria and surrounding locations appeal to buyers seeking beaches, established residential communities and convenient access to both Marbella and Málaga.

New Development or Resale?

Both have advantages.

A new development can offer contemporary architecture, modern energy efficiency, communal facilities, warranties and payment schedules spread across the construction period.

Resale properties, meanwhile, often provide something increasingly difficult to reproduce: established locations, larger plots, mature gardens and immediate occupation.

Older properties may also offer substantial renovation opportunities.

The correct choice depends upon the buyer's timeframe, risk appetite, preferred location and willingness to undertake refurbishment.

Don't Buy on Square Metres Alone

One of the most common mistakes is comparing properties purely according to price per square metre.

Two villas of identical size can have dramatically different values.

Factors including:

• exact location;

• sea or golf views;

• orientation;

• privacy;

• plot quality;

• architectural design;

• construction standard;

• community;

• proximity to amenities; and

• scarcity

can have a major effect on both current and future value.

In Marbella's prime market, quality of location frequently matters more than quantity of square metres.

Rental Potential

Buyers intending to generate rental income should investigate the position carefully before purchasing.

Not every property is equally suitable for short-term tourist rental, and applicable regulations, registration requirements and community restrictions need to be checked.

A property that works extremely well as a family home may not necessarily provide the strongest rental return—and vice versa.

Before purchasing specifically for rental investment, buyers should therefore obtain realistic estimates of occupancy, achievable rental rates, management costs, community fees, maintenance, taxation and applicable rental restrictions.

Important Checks Before Buying

Good due diligence is about identifying potential problems before money becomes irreversibly committed.

Buyers should investigate the property's legal status, planning history, physical condition and ongoing costs.

Particular attention should be given to extensions, converted terraces, swimming pools, basements and other alterations to ensure that what exists physically corresponds appropriately with the property's legal and planning documentation.

For villas and older properties, commissioning an independent building or technical inspection can also be sensible.

After Completion

Ownership brings several ongoing responsibilities.

These can include:

• annual IBI property tax;

• community fees where applicable;

• utilities;

• insurance;

• property maintenance;

• non-resident or resident tax obligations;

• pool and garden maintenance;

• security; and

• property management.

Owners who spend only part of the year in Spain should consider how the property will be maintained while they are abroad.

Professional property management can be particularly valuable for second homes, ensuring that maintenance issues are identified quickly and that the property is prepared before the owner's arrival.

Frequently Asked Questions

Can foreigners buy property in Marbella?

Yes. Foreign residents and non-residents can purchase property in Spain, subject to the relevant identification, anti-money-laundering and legal requirements.

Do I need Spanish residency to buy?

No. Buying a property and obtaining Spanish residency are separate legal matters.

Can I obtain residency by buying a €500,000 property?

Not under the former Golden Visa property investment programme. That route ended for new applications in April 2025.

How long does buying a property normally take?

A straightforward resale transaction can often progress from reservation to completion within several weeks, but there is no fixed timetable. Financing, legal due diligence, documentation and the circumstances of the buyer and seller can all affect timing.

Do I need a Spanish bank account?

Although the precise requirements depend upon the transaction, having a Spanish bank account can make ongoing ownership considerably easier for paying utilities, community fees, taxes and other property expenses.

How much should I budget above the purchase price?

There is no single percentage that applies to every purchase. The total depends particularly upon whether the property is resale or new build and the taxes applicable to the individual transaction. A buyer should obtain a personalised cost calculation before committing to the purchase.

Buying in Marbella in 2026–2027

The fundamentals that have made Marbella and the Costa del Sol internationally attractive remain compelling: climate, lifestyle, accessibility, infrastructure, international communities and a limited supply of the very best residential locations.

But today's buyer is generally better informed and more selective.

Finding a property is only part of the process. Understanding where to buy, what represents genuine value, the property's legal position, future resale potential and the true cost of ownership is equally important.

At Asset Folio, we have been operating in the Marbella and Costa del Sol property market for many years, advising international clients across new developments, resale properties, luxury villas and investment opportunities.

Our role goes beyond presenting properties. We help clients understand the market, compare opportunities and navigate the buying process from initial search through negotiation, legal coordination and completion.

Whether you are considering a permanent move to Marbella, a second home in the sun or a long-term property investment, the starting point should always be the same:

Understand the market first. Buy the right property second.

Purchasing a property in Marbella and Costa del Sol is an exciting step, but it’s essential to understand the local market and navigate the legal, financial, and logistical aspects with care. Whether you’re seeking a second home, an investment property, or a retirement haven, choosing the right partner can make all the difference. Assetfolio offers the expertise, support, and resources you need to make the buying process smooth and successful. Start your journey today and let Assetfolio help you find your dream property in Spain!