UK Buyers on the Costa del Sol

Last reviewed: 23 May 2026

The Costa del Sol is still the busiest market in Europe for British property buyers. Twenty-plus years of inbound activity, an unbroken Iberia and easyJet schedule into Málaga, and a wide enough price band (under €300,000 apartments inland, €5m+ villas in Sotogrande) for almost every budget. Brexit didn’t kill the market, it changed the paperwork. The four big things that have actually shifted for British buyers since 2020 are non-resident mortgage criteria, currency volatility, the 7% Andalucía ITP, and the post-Beckham visa rules for British nationals who want to live there year-round. This page covers what matters now.

Where British buyers buy

The map below isn’t every town, it’s where British buyers search most often on EPG. Marbella and the Golden Mile for the established expat scene and high-end resales. Estepona for newer-build apartments and walkable old town. Benahavís and the hill villages for villas with views. Mijas Pueblo and Mijas Costa for retirees on a tighter budget. Sotogrande for sailing, polo and the gated-community profile. Nerja for the eastern Costa del Sol look (Moorish whitewash, less density, longer drive from Málaga airport).

• Marbella (incl. Nueva Andalucía, Puerto Banús, the Golden Mile): the centre of the British market. Apartments from c. €350,000, villas €1.5m+.
• Estepona: the strongest new-build pipeline on the coast. Apartments €280,000 to €700,000 are the active band.
• Benahavís: villas and gated developments, €700,000 to €5m+. La Zagaleta, El Madroñal, Los Arqueros.
• Mijas (Pueblo and Costa): best for budget retirees and family buyers. Townhouses €250,000 to €450,000.
• Sotogrande: its own market at the western end of the coast. Marina apartments, Almenara and La Reserva villas, polo houses.
• Nerja and the eastern Costa del Sol: quieter, more whitewashed, an hour east of Málaga.

Spanish purchase costs for British buyers

Headline cost on top of the purchase price for a resale property in Andalucía is roughly 10% to 12% all-in: 7% ITP (Andalucía’s transfer tax, reduced from 8% in 2022), 1.5% to 2% notary and registry, 1% to 1.5% lawyer’s fees, plus mortgage costs if you’re financing. Off-plan attracts 10% IVA + 1.5% AJD instead of ITP, which makes new builds a touch more expensive on the tax line. We line-item the cost on every property listing under “Estimated buying costs”.

Non-resident mortgages

British buyers post-Brexit are now treated as non-EU non-residents by Spanish banks. The big four (Santander, BBVA, Sabadell, CaixaBank) all lend to UK buyers, typically at 60% to 70% LTV on Spanish property, 25-year max term, with income evidence going back two to three years. Rates track Euribor + a spread (currently c. 1.5% to 2.5% on top of Euribor, depending on lender and loan-to-income). Specialist brokers will compare across all four plus international lenders (BNP, ING, international private banks) for higher-net-worth profiles. Every listing on this site carries a non-resident mortgage simulator so you can sanity-check the monthly before you enquire.

Currency: GBP to EUR for the purchase

Most British buyers underestimate the FX bill. A €1m purchase moved at high-street bank rates typically costs 2% to 4% in spread plus fixed fees, so £20,000 to £40,000 disappears into the bank’s margin before you even get to ITP. Specialist FX brokers (Currencies Direct, Caxton, OFX) charge 0.3% to 0.7% and offer forward contracts to lock in the exchange rate up to 12 months ahead of completion, which is the single biggest cost-protection step you can take between offer and completion.

Living there year-round: visas and residency

If you intend to use the property for stays beyond 90 days in any 180, you’ll need a Spanish residence permit. Post-Brexit, the three routes most British buyers use are the Non-Lucrative Visa (passive income, around €2,400+ per month for a single applicant, no work in Spain), the Digital Nomad Visa (launched 2023, for remote workers earning ~€2,520+ per month from non-Spanish employers), or family reunification. Holiday-home owners who stay under 90/180 don’t need a visa. Our UK expats in Spain money and tax guide covers the post-move position.

Tax on the property once you own it

Three taxes apply year-on-year:

• IBI: the council tax. Typically €500 to €2,000 per year depending on town and property size.
• Non-resident income tax (Modelo 210): if you don’t rent the property out, Spain still levies a deemed-rental tax of around 2% of the cadastral value at 24% (for non-EU non-residents post-Brexit). If you do rent it out, actual rental income is taxed at 24% with no deductions for non-EU residents.
• Impuesto de Patrimonio (wealth tax): Andalucía applies a 100% bonification on wealth tax, meaning effectively zero for most owners. The national-level Solidarity Tax above €3m of Spanish-situs assets still applies and is not bonified.

The wealth-tax position has changed twice in three years and is regional-political. Worth confirming the current year’s position with a Spanish tax adviser before completion.

Inheritance: the British will and the Spanish property

Two systems collide. UK domicile (which most British buyers retain) means HMRC taxes your worldwide estate at 40% above the nil-rate band. Andalucía applies a 99% bonification on Spanish inheritance tax (ISD) between close family, which makes the Spanish line small for direct heirs. The trap is the will: Spanish forced-heirship rules can override your UK will unless you elect English law to govern your succession under EU Regulation 650/2012. Get the will reviewed and the election documented before completion, not after.

How EPG fits in

EPG lists Costa del Sol property from partner estate agents across the towns above. Search by area and budget on our listings page, enquire on a property, and the listing agent handles viewings and the sale. For the legal, tax, and mortgage side, read our newsroom or the how buying works guide before you fly out.