Buying property in Costa del Sol is a lifelong dream for many UK and Northern European retirees. Between the glamour of Marbella, the sophistication of Estepona, and the calm charm of Mijas and Fuengirola, this stretch of southern Spain remains one of Europe’s most desirable places to live. Yet behind the sunshine and seaside allure lies a crucial question: how much does it really cost to buy property here in 2025?
Did you know that additional fees such as notary costs, property taxes, and legal services can add up to 10–15% on top of the property price? For retirees planning a permanent move or a second home, understanding these expenses is essential. In this guide, we break down every cost you’ll encounter, from purchase to ownership, helping you plan wisely and enjoy a smooth buying experience.
Understanding Property Prices in Costa del Sol
The Costa del Sol property market in 2025 remains strong and resilient. Increased demand from international buyers has driven prices steadily upward, particularly in Marbella and Estepona. On average, apartments in Fuengirola start around €250,000, while townhouses in Estepona often range from €400,000 to €900,000. For those seeking luxury, villas in Marbella or Benahavís can easily exceed €2 million.Several factors influence property prices, including location, sea views, access to golf courses, and proximity to amenities such as restaurants, schools, and healthcare. Properties close to the coast or with panoramic Mediterranean views command higher prices. Meanwhile, homes situated a little further inland often provide better value without sacrificing lifestyle quality.
Additional Costs Beyond the Purchase Price
One of the most common surprises for international buyers is the number of additional costs beyond the property’s listed price.Notary and registration fees typically amount to around 0.5–1% of the property’s value. These are mandatory payments to register your new home in Spain’s land registry.
Property transfer tax (ITP) applies to second-hand homes and generally ranges between 7–10%, depending on the property’s price bracket and the region. For newly built homes, a 10% VAT replaces this tax, plus a small stamp duty fee.
Legal fees should also be considered. Hiring an experienced property lawyer or solicitor in Spain is essential to ensure the purchase process runs smoothly and complies with Spanish property laws. Legal fees usually range between 1–2% of the purchase price.
Real estate agent commissions are generally paid by the seller, but it’s worth confirming this with your agent. In cases where buyers engage property finders or bespoke services, commissions can range from 3–5%.
When all costs are combined, buyers should expect to add roughly 10–15% to their total budget.
Financing Your Property
For UK and Northern European retirees who are not Spanish residents, financing options are widely available but may differ from local mortgage arrangements. Non-resident mortgages in Spain typically require a higher deposit of around 30–40% of the purchase price. Mortgage rates in 2025 are relatively stable, generally ranging from 4–6% depending on the lender, property type, and borrower profile.Banks often charge additional administrative fees for setting up mortgages, so it is worth comparing offers from multiple institutions. Currency exchange is another important consideration; fluctuations in the pound or euro exchange rate can significantly impact your total payment. Working with an international mortgage advisor or currency specialist can help you secure the best terms and avoid hidden charges.
Ongoing Costs of Property Ownership
Owning a property in Costa del Sol involves ongoing financial commitments that many new homeowners overlook.Annual property tax (IBI) is levied by the local council based on the property’s cadastral value. Although this varies between municipalities, it usually ranges between 0.4–1.1% per year.
Community fees apply to properties within urbanisations or developments. These cover maintenance of shared facilities such as swimming pools, gardens, security, and cleaning. Depending on the size of the community and services offered, these can range from €50 to €300 per month.
Utilities, insurance, and maintenance also add up. Regular maintenance, including pool care and garden services, can make a difference in preserving property value. Home insurance is essential and relatively affordable in Spain, while electricity and water costs depend on usage and location.
Furnishing and renovations can be a significant one-off expense, especially if the property is unfurnished or in need of updates. Many retirees budget an additional €10,000–€50,000 for this stage.
Hidden Costs International Buyers Often Miss
Some expenses are not immediately obvious but can affect your total investment.Currency exchange fluctuations can lead to higher payments if the exchange rate shifts unfavourably between your offer and completion date. Locking in rates early or using a currency broker can mitigate this risk.
Legal obligations for foreign buyers may include registering with tax authorities, paying annual non-resident income tax, or obtaining an NIE (foreigner’s identification number).
Unexpected property improvements such as modernising older electrical systems or updating plumbing can also arise. Conducting a professional survey before buying can prevent surprises and give you leverage in price negotiations.
Comparing Costa del Sol with Other Spanish Regions
Compared to regions such as Costa Blanca, Alicante, or Mallorca, the Costa del Sol commands slightly higher property prices. However, this region offers unmatched lifestyle benefits: over 300 days of sunshine per year, world-class dining, international schools, and a cosmopolitan community.Property investors also enjoy strong returns on investment thanks to consistent rental demand and long-term capital growth. For retirees, the area offers excellent healthcare, transport links, and leisure options, making it one of Spain’s most secure and rewarding places to buy property.
Why Choose Delena & Grande?
Delena & Grande are specialists in helping international buyers find and secure property across the Costa del Sol. With extensive local expertise and a personalised service, they ensure every stage of the buying process is smooth, transparent, and stress-free.Their local expertise and market knowledge mean you gain access to exclusive listings across Marbella, Estepona, Sotogrande, and surrounding areas. Their proven track record of success demonstrates years of helping retirees and international investors achieve their property goals in Spain.
Delena & Grande also offer personalised marketing and advisory services, ensuring each client’s needs are met individually. Their dedicated support throughout the process includes legal guidance, financial advice, and property aftercare. Combining modern technology, virtual tours, and detailed market reports, they help clients make informed, confident decisions.
Frequently Asked Questions
How much tax will I pay as a foreign property owner in Spain?Foreign buyers pay property transfer tax or VAT at the time of purchase and annual IBI thereafter. Non-residents must also declare imputed income tax on second homes. Your solicitor can provide a full breakdown and ensure compliance with Spanish tax laws.
Can I get a mortgage as a non-resident in Spain?
Yes. Spanish banks frequently lend to non-residents, typically financing up to 60–70% of the property’s value. Providing proof of stable income and strong credit history improves your approval chances.
Can I rent out my property after purchase?
Yes, but regulations vary by region. In Costa del Sol, you must register your property with the regional tourism board and ensure it meets safety and quality standards. Many retirees use this opportunity to generate income when not in residence.
What are the average maintenance costs for a villa or apartment?
For apartments, monthly costs usually range between €100 and €300 depending on facilities. Villas may cost more due to private gardens and pools. Budgeting annually for maintenance ensures your home remains in top condition.
Conclusion
Buying property in Costa del Sol in 2025 involves more than simply paying the purchase price. Factoring in taxes, legal fees, ongoing maintenance, and unforeseen costs ensures your transition to Mediterranean living is smooth and financially secure.With expert guidance from Delena & Grande, you can make confident decisions, access premium properties, and enjoy peace of mind knowing your investment is protected. Begin your journey towards owning a beautiful home in Spain’s sunniest region.
Contact Delena & Grande today to start your property search and make your Costa del Sol dream a reality.
