Greetings to readers of the blog about real estate and investments in Spain! Today we're discussing a hot topic that concerns anyone considering Andalusia as a location for residential transactions. Regional authorities have made important amendments to their budgets that will directly impact the tax burden on professional investors and developers. This concerns a preferential property transfer tax (ITP or TPO) rate of 2%.

In short: the "window of opportunity" with the most favorable terms closes on December 31, 2025.

How it works now (until the end of 2025)

For professional market players (construction companies, developers, investors systematically involved in resale), Andalusia offers a special regime. When purchasing a property for resale, they can pay only 2% ITP instead of the standard 7-10%. This is a significant savings that increases the profitability of projects.

Key conditions of the "old" tax break:

Buyer status: Conducting business activity in the real estate sector.

Accounting: The property is accounted for as a commodity (activo circulante) under special rules.

Resale period: The property must be sold within 5 years of purchase.

Important detail: The tax break is not tied to the property's value. It could have been applied to expensive properties as well.

What are the fundamental changes coming as of January 1, 2026?

The new Andalusian budget law introduces two fundamental restrictions that narrow the scope of the tax break:

1. A value cap is being introduced. Now, the 2% rate will only apply to properties valued at up to €500,000. This amount includes everything transferred along with the property: garages, storage rooms, and parking spaces (annexes).

2. The resale period is being shortened. Instead of 5 years, investors will have only 2 years (24 months) to sell the property and meet the tax exemption requirements.

What does this mean in practice? The tax exemption will remain, but it will be focused on mid-priced real estate transactions and will require a more dynamic business plan.

The main rule: "A drowning man must save himself."

Here lies the most important point that must not be overlooked: the transition period rules.

Transactions completed BEFORE 31.12.2025 are NOT subject to the new strict limits. The old, much more lenient conditions will continue to apply: a 2% rate with no price limit and a resale period of 5 years.

Transactions completed from 01.01.2026 are automatically subject to the new rules (limit of €500,000 and a resale period of 2 years).

The conclusion is simple and obvious: if you were planning an investment property purchase in Andalusia, especially in the premium segment, the coming months are the best time to act.

What happens if you don't meet the conditions?

Violating any of the conditions (for example, failing to meet the resale deadline or making an accounting error) will lead to unpleasant consequences. The tax office will assess additional ITP at the full rate (up to 7%), minus the 2% already paid, plus fines and penalties. Savings will turn into additional expenses.

What about other regions of Spain?

As we've previously discussed, such incentives are regionally specific. Similar regimes exist in Asturias, Madrid, and Valencia. However, in Catalonia, as a reminder, a similar incentive for realtors and developers was abolished in the spring of 2025. This once again highlights that tax regulations are fluid, and it's important to stay up-to-date with current information for your specific region.

Results and our recommendations

1. Now (until the end of 2025) is a unique opportunity to register investment properties in Andalusia at a highly preferential tax rate.

2. From 2026, the tax exemption will remain, but will become less flexible. It will be of interest primarily to those with a medium budget.

3. Check the status. Ensure that your tax and accounting consultant correctly prepares all documents, especially the notarized declaration of the purpose of the purchase.

4. Don't forget about the transition period. Rights acquired in 2025 will be protected.

We hope this analysis was helpful to you.

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P.S. (Important note): This article is for informational purposes only and does not constitute tax advice. Before entering into any transaction, be sure to consult a specialized lawyer or asesor fiscal to analyze your specific situation.

Buying property on the Costa del Sol is an investment in quality of life, sunshine, and Mediterranean culture. However, the variety of options can overwhelm even an experienced buyer. How do you choose not just a home, but a place that will meet all your expectations? In this guide, we'll cover the key steps: from choosing a neighborhood to signing the contract.

Step 1: Choosing a neighborhood – define your "perfect day"

The Costa del Sol isn't a single resort, but a mosaic of towns and villages with unique character. Ask yourself: what does your perfect day by the sea look like?

Marbella and Puerto Banus:

The epicenter of glamour and luxury. Here you'll find marinas with yachts, fine dining restaurants, boutiques from world-renowned brands, and a vibrant nightlife. Ideal for those seeking status, dynamism, and impeccable service. Prices here are among the highest on the coast.

Estepona and its surroundings:

The golden mean. Modern resort complexes (such as Nueva Andalucía or Selvo) neighbor the charming historic center of Estepona. They offer excellent family-friendly amenities, numerous golf courses, a quieter atmosphere, and relatively affordable prices.

· Benalmádena and Fuengirola:

An ideal choice for active lifestyles and families. Long beaches, a water park, the Bioparc animal park, well-developed transportation links (close to Málaga airport), and affordable prices. Here, the influence of the international community is more noticeable.

· Mijas and Mijas Pueblo:

For those who appreciate authenticity and panoramic views, the snow-white village of Mijas Pueblo, carved into the mountain, offers the unique charm of "real Andalusia." The modern coastal area (Mijas Costa) is a good choice for seaside living in a more tranquil setting.

· Sotogrande:

The "capital" of golf and respectable tranquility. An exclusive, planned community with luxury villas, world-class polo and golf courses. An atmosphere of privacy and a focus on sports and outdoor recreation.

Recommendation: Spend at least a week on the coast, living in different neighborhoods to experience their atmosphere from the inside.

Step 2: Property Type – Which One to Choose?

Each housing type offers its own lifestyle and level of responsibility.

Residential Apartments

Security (concierge, security), shared amenities (swimming pools, gardens), low maintenance costs. Limited privacy, shared rules (e.g., for renting), and potential for noisy neighbors. Ideal for investors, young people, couples, and those who want to "lock the door and leave."

Townhouse

More privacy than apartments, often with a small private garden/patio. Smaller property than a villa, may share walls with neighbors. Families who want their own private corner without the hassle of gardening.

Villa

Maximum privacy and space, private plot, swimming pool, and flexibility in layout. High purchase and maintenance costs (taxes, utilities, security, garden maintenance). For large families, those who value privacy and plan to live there permanently.

Step 3: Key factors to check

1. Legal clarity: This is the most important point. Be sure to engage an independent lawyer to check:

· The presence and clarity of the Escritura (notarial title deed).

· No outstanding taxes (IBI) or utility bills.

· The legality of all buildings and alterations (the most common problem is illegal extensions).

· For new builds, ensure all developer licenses and bank guarantees are in place.

2. Orientation and view: South-facing properties are a decisive factor for comfort. South and southwest exposures maximize sun exposure. Sea, mountain, or golf course views significantly impact the price and enjoyment of living.

3. Utilities and Infrastructure: Check for central heating (important for winter living), air conditioning, and waste disposal. Estimate the distance to a supermarket, pharmacy, medical center, and good schools, if applicable.

4. Community Fees: Apartments and townhouses require monthly fees for common area maintenance. Find out how much these fees are and what they are used for. For villas, consider the costs of a gardener, pool maintenance, and security.

5. Rental Potential: If you're considering the property as an investment, research rental demand in the chosen area (tourist vs. long-term), seasonality, and expected returns.

Final Buyer's Checklist:

Decided on a priority area after a personal visit.

Selected a property type that suits your budget and lifestyle.

Hired an independent Russian- or English-speaking lawyer with experience in Spain.

Conducted a full legal due diligence of the property.

Obtained mortgage approval from the bank (if necessary) or prepared financial guarantees.

Inspected the property in person at various times of the day.

Calculated all associated costs: purchase tax (ITP or VAT), notary fees, registration fee, annual taxes (IBI), utility bills, and maintenance.

Prepared an NIE (Foreigner Identification Number) – this is the first step for any financial and legal transactions.

Key findings:

Price growth: Moderate but steady growth of 5-8% in prime areas.

Key drivers: Strong demand with limited supply, interest from foreign buyers.

Emerging trends: Increased demand for green properties, off-plan properties, and premium rentals.

Demand geography: In addition to traditional European investors, buyers from Eastern Europe are active.

The Costa del Sol, one of Europe's most sought-after coastlines, continues to demonstrate remarkable resilience and appeal to investors from around the world. Having successfully weathered the post-pandemic boom, the region's real estate market has entered a phase of mature, stable growth in 2025-2026, shaped by both global economic trends and unique local factors.

Current Market Status: Facts and Figures

After a significant recovery in 2024, the Spanish property market overall, and the Costa del Sol in particular, continued to grow. As of mid-2025, average prices nationwide had increased by 14% compared to the previous period, reaching €2,438 per square meter. Andalusia, which includes the Costa del Sol, saw sales increase by 10% in the first quarter of 2025.

Key characteristics of the current market:

Strong foreign demand: Around 20% of all transactions at the beginning of 2024 involved foreign buyers. For Málaga (on the Costa del Sol), this figure was 32%.

Limited supply: A shortage of new homes, particularly in coastal areas, is creating intense competition and fueling price increases. · Concentration in the premium segment: The most significant price growth is observed in prime areas such as Marbella's Golden Mile, Puerto Banus, and Estepona, where prices are projected to increase by up to 8% in 2025.

Key trends shaping the market in 2026

1. Moderate but steady price growth

Price growth is expected to slow somewhat compared to the record levels seen in 2023-2024, but the trend will remain positive. Growth will be uneven, with locations with high demand and limited supply of prime real estate leading the way.

2. Green revolution in real estate

Buyers are increasingly choosing properties with environmentally friendly features, such as solar panels, energy-saving systems, smart homes, and eco-friendly building materials. Residential complexes that prioritize sustainability—with green spaces, bike paths, and electric vehicle charging stations—are in high demand.

3. Growing Interest in Off-Plan Properties

Buying off-plan offers the opportunity to acquire property at a more favorable price with the potential for appreciation by the time the property is completed. Furthermore, buyers can often customize the layout and finishes to suit their needs. This trend is especially relevant for new developments in developing areas.

4. A Boom in Premium Rentals

The rental market remains extremely attractive to investors. Tourist rental yields in popular locations can reach 7-14% gross yield, providing a net return of 3-6% after taxes and expenses. Demand is growing not only for short-term but also for long-term rentals among expats and digital nomads.

5. Shifting Focus on Health and Lifestyle

The pandemic has permanently changed buyers' priorities. Properties near spas, wellness retreats, modern fitness clubs, and sports facilities are trending. Quality of life, outdoor sports opportunities, and access to wellness practices are becoming significant factors when choosing a home.

6. New Players: Buyers from Eastern Europe

Geopolitical instability has led to a significant influx of buyers from Eastern Europe, particularly Ukraine, Poland, and Lithuania. They are seeking not only security and stability in the Costa del Sol, but also a high quality of life, which is creating additional demand, especially in Marbella, Estepona, and Fuengirola.

Prospects and Challenges

The outlook for the coming years remains optimistic. The Costa del Sol maintains its status as one of the most attractive investment destinations in Europe thanks to its climate, infrastructure, quality of life, and diversified market.

However, investors should also consider potential challenges:

· Bureaucratic procedures for purchasing real estate and obtaining a residence permit. · The impact of the global economy (interest rates, exchange rates).

· Growing competition for the best properties in prime locations.

· The need for professional support to navigate the local market and select a reliable developer or property.

Conclusion

The Costa del Sol real estate market in 2026 is a mature, dynamically developing market, where the period of rapid growth has given way to a phase of stable and predictable growth. The key to a successful investment today is not speculation, but a balanced choice: the right location with high rental yield potential, a property that meets the requirements of the market.

🌊 Three Key Trends for 2026

• From Investment to Lifestyle-First. Buyers are increasingly choosing real estate for a fulfilling life, rather than for a seasonal getaway. High-quality infrastructure, walkability, coworking spaces and wellness centers, and vibrant off-season areas are becoming increasingly important.
• New Developments Boom. The market is actively expanding with new buildings that meet modern demands: high energy efficiency, smart technology, and ready-made rental solutions. Major construction projects are underway in Estepona (New Golden Mile), Marbella, and Mijas.
• Steady Growth in Prices and Demand. Despite macroeconomic challenges, demand on the coast remains strong, especially from buyers from the UK and Northern Europe. This is supporting prices: forecasts indicate a 4-7% increase in 2026. This growth is most noticeable in the premium segment.

📈 Pricing Landscape and New Projects

Prices vary greatly depending on location. The table below provides benchmarks for key areas and examples of new projects.

🏆 Where will people invest in 2026?

With the "quick money" from visas no longer available, capital is concentrated in the most reliable and liquid assets. The primary focus has shifted to:

• Exclusive Communities. Ask about investing in communities like La Zagaleta, Sierra Blanca, or El Madroñal. These communities offer privacy, security, and stable growth.
• Branded Residences. New complexes like Higuerón often offer hotel-level management services, guaranteeing rental income and eliminating hassle for owners.
• Properties with an established rental history. Apartments in established complexes with a valid tourist rental license are especially valuable, as obtaining new licenses is restricted in some municipalities.

💎 Conclusion and advice for buyers

The key takeaway for 2026: the Costa del Sol market has matured. It now rewards those who invest in quality of life, a long-term perspective, and careful analysis.

Key tip: Due to the abolition of "golden visas" and the increasing complexity of the market (legal nuances, developer due diligence, tax issues), working with a reliable local property consultant has become not only helpful, but essential.

If you are interested in a specific type of property (for example, a villa in a gated community or apartments in a new seaside development for investment purposes), I can help you find more detailed information on these areas.

The Mediterranean coast of Spain continues to be one of the most attractive and dynamic real estate markets in Europe. If you are an investor, a market professional, or just dreaming of a house on sunny beach, in order to keep abreast of trends and opportunities, it is important to be where deals are made and contacts are made. We have compiled for you the key industry events of 2026 that are worth visiting in order to gain a deeper understanding of the Costa del Sol market and take an informed next step.Why does the Costa del Sol remain in focus?Before proceeding to the announcements, it is worth understanding the context. In 2025, the luxury real estate market of the coast, and especially the so-called "Golden Triangle" (Marbella, Benahavis, Estepona), reached record levels. The price increase here was not due to speculation, but to stable factors.: limited supply, stable interest of international investors and the region's status as a global center of luxury living.At the same time, the market is undergoing a transformation: the rules for tourist rentals are being tightened, and buyers are increasingly paying attention to developing areas such as Ojen or Fuengirola, looking for the best value for money. To navigate these changes, live communication with colleagues and experts becomes not just useful, but necessary. The main events of 2026 for professionals and investorsHere are the events that will become points of attraction for everyone involved in real estate in Spain.

1. Property Deal Network (PDN) Marbella: Monthly networkingThis is a regular free event that takes place monthly in the heart of the Costa del Sol Marbella.

Format:

• Informal meetings to share experiences, make deals, and find partners.For whom:
• Ideal for active investors, developers, realtors, architects, lawyers and financiers working in the Andalusian market — from Nerja to Gibraltar.Benefit:
• This is your chance to become a part of the local professional community, to be the first to learn about new projects and investment opportunities right on the coast. According to the organizers, this is a place where you can "close deals, finance projects, and share opportunities."

• A two-day top-level conference organized by Iberian Property in collaboration with market leaders CBRE and JLL.For whom:
• For large investors, heads of international funds, top managers of development companies and analysts.Benefit:
• The summit offers an in-depth analysis of macro trends. The focus of 2026 is on the role of technology, the impact of the global economy, and the prospects for investment through REITs (real estate investment trusts). This is an opportunity to assess the place of the Costa del Sol in the overall investment picture of the country.3. International Real Estate Conference in Malaga (November 2026)According to the schedule of international conferences, a real estate research conference is scheduled for November 2026 in Malaga.Format:
• Academic and research conference.For whom:
• Primarily for scientists, market researchers, analysts, and students interested in the theoretical and applied aspects of real estate.Benefit:
• It will allow you to get acquainted with the latest research data and gain a deeper understanding of the economic and social drivers affecting the Andalusian market.

How can I make the most of my participation?

• To make attending the event pay off handsomely, prepare yourself: Define your goals clearly:
• Are you looking for a partner for joint investments? Do you want to find a promising object? Are you studying new laws? This will help you choose the right event and effectively allocate time.Actively network:
• Do not hesitate to get acquainted. The most valuable insights are often received on the sidelines over a cup of coffee, and not just during official sessions.Study the trends in advance:
• Be aware of the current situation. For example, knowing that existing real estate with a tourist rental license (VFT) is becoming especially valuable due to new regulations can be a great topic for a productive conversation.Instead of concluding: your place in this market The Costa del Sol real estate market is entering a phase of healthy and sustainable maturity. Information from the Internet alone is not enough to make informed decisions in this context.
• Direct contacts, expert opinions and lively discussion form a real competitive advantage.Choose an event that suits your needs and make 2026 a time for a qualitative breakthrough in your projects on the sunny coast of Spain. Good luck and productive meetings

The Costa del Sol offers over 300 days of sunshine a year, kilometers of golden beaches, and a stable real estate market. This region has long been a magnet for foreign buyers, accounting for up to a third of all transactions in the province of Malaga. But the path to your own villa or apartment by the sea requires careful preparation. This guide will help you avoid common mistakes and make an informed choice.

Researching the Market and Choosing a Location

The Costa del Sol is not a single resort, but a series of towns and urbanizations, each with its own character, price point, and target audience. Research is a crucial first step.

• Marbella is synonymous with luxury. It is home to the most expensive villas, private urbanizations with golf courses, and marinas. Prices start at €4,500 per square meter, and purchases in prestigious areas like the Golden Mile often exceed a million euros. This is the choice for those seeking status, superior service, and an international environment.
• Estepona is the "golden mean." A dynamically developing city where you can find more affordable options both on the resale market and in new, modern developments. It has seen record growth in the number of transactions. It offers an excellent balance between infrastructure, quality of life, and price.
• Sotogrande is a world of polo and sailing. An elite, yet more intimate and tranquil club village on the west coast, it caters to active holidaymakers.
• Malaga is the provincial capital. It's suitable for those seeking a vibrant city, a rich cultural life, and convenient logistics (there's an international airport here). Prices are lower than Marbella, but higher than the regional average.
• Promising destinations (Casares, Manilva, Benahavis). If your budget is limited to €150,000–€250,000, consider towns further inland or developing areas. Here you can find quality townhouses and apartments, often in new complexes, sacrificing only the distance to the sea (10-15 minutes by car).

For a quick comparison of popular locations:

Practical steps to buying: from dream to deal

1. Define clear goals

Ask yourself: is this a holiday home, a permanent residence, or an investment? Your criteria depend on this. For permanent residence, a school, clinic, and nearby shops are crucial. For an investment, the potential for appreciation and rental yield are key.

2. Build a team of professionals

Don't try to go it alone, especially if you don't speak Spanish. Your team should include:

A real estate agent with in-depth knowledge of the specific area. They will provide access to a database of properties, conduct negotiations, and assist with communication.

A real estate lawyer (abogado) who will represent your interests exclusively. They will check the legal status of the property, ensure the existence of debts, and ensure all contracts are in order.

A financial advisor or mortgage broker, if you are planning a loan. Spanish banks require a 30-40% down payment from non-residents.

3. Obtain a NIE (Numeró de Identificación de Extranjero)

This is a foreigner's tax identification number, mandatory for any transaction in Spain—from opening a bank account to signing the deed. Obtaining one is one of the first practical tasks.

4. Financial plan: purchase price + additional costs

The property price on the website is only part of the costs. Taxes and fees must be added:

For resale properties: the property transfer tax (ITP) in Andalusia is 7% of the purchase price.

For new builds: VAT (IVA) — 10% + stamp duty (AJD) — 1.2%.

Additionally: notary and registration fees (≈1%), legal services (1% + VAT), and possible agency commission.

Total additional costs will be approximately 10-12% for resale properties and 12-14% for new builds. 5. Search, Inspection, and Transaction

Inspection: Don't rely solely on online photos. A personal visit is essential to assess not only the house but also the neighborhood, traffic, and noise.

Reservation: After selecting a property, you sign a preliminary contract and pay a deposit (usually €5,000–€10,000) to remove the property from the market.

Due Diligence: Your lawyer must verify all documents before signing the main purchase and sale agreement: the notary deed (Nota Simple), the absence of tax and utility bill arrears, the presence of a residence permit (cédula de habitabilidad), and the energy certificate.

Signing the Deed of Sale (Escritura Pública): The final stage takes place before a notary. You pay the remaining balance, and the notary draws up the deed of transfer, which is then registered in the Property Registry.

What to avoid: common mistakes buyers make

Chasing the perfect property at the lowest price. In the highly competitive Costa del Sol market, the "perfect and cheap" property is almost a myth. Be prepared to make reasonable compromises.

Skimming on professional assistance. Trying to cut corners on a lawyer or agent can lead to purchasing a property with legal issues or significantly overpaying.

Ignoring hidden costs. Failing to budget for an additional 10-14% can leave you short of funds at closing.

Don't personally check documents. Trust, but verify. Make sure all licenses and certificates, especially for new builds, are in order.

Conclusion

Buying property on the Costa del Sol is an investment not only in a property but also in quality of life. The success of this venture depends on careful planning, a realistic budget, and, most importantly, working with trusted local experts. Start with your research, visit the location to experience the atmosphere of different cities, and let your dream of a home under the Spanish sun become a profitable and reliable reality.

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