Buying Property on the Costa del Sol: 2026 Guide

The Costa del Sol is the more expensive of the two coasts we cover, and the tax story is more complicated than the headline suggests. Across our Costa del Sol book, medians run from €324,950 in Vélez-Málaga to €1,495,000 in Benahavís. Choosing the right town matters more here than anywhere else in Spain.

Why the Costa del Sol?

The Costa del Sol stretches along the southern coast of Málaga province and is one of Europe’s most established holiday and expat destinations. It combines a mature tourism infrastructure, excellent transport links (Málaga-Costa del Sol airport handles over 20 million passengers annually), and a year-round international community. For property buyers, the key financial advantage is Andalusia’s lower transfer tax: just 7% ITP on resale properties, compared to 10% in the Valencia Community (Costa Blanca). On a €300,000 purchase, that’s a €9,000 saving.

The Tax Advantage Has a Catch

Andalusia's 7% ITP is the most-quoted reason to buy on the Costa del Sol rather than the Costa Blanca. It is real, and it only applies to resale. New build pays 10% IVA plus 1.5% AJD everywhere in Spain, Andalusia included.

Now look at what is actually for sale. All 198 of our Estepona listings are new build. Mijas is 216 new build against 2 resale. Fuengirola is 117 against 4. Marbella is 102 against 1. On the Costa del Sol as we see it today, the 7% rate applies to a handful of properties and the 11.5% rate applies to almost everything.

This is not a reason to avoid the coast. It is a reason to stop treating tax as the deciding factor and price the purchase properly instead. If a 7% resale genuinely matters to you, the practical answer is the Costa Blanca, where 208 of our 2,108 listings are resale and 125 of those are in Torrevieja alone. But there the ITP is 10% rather than 7%, so you should run both sums rather than assuming.

Budget on the assumption that you will pay IVA plus AJD, and treat a resale find as a bonus.

The Costa del Sol Town by Town

Live listing counts, cheapest listing and median asking price across the towns we cover in Málaga province:

Benahavís is the row that rewards a second look. Its median of €1,495,000 is the second highest on the list, but its cheapest listing is €247,000, lower than Marbella, Torremolinos or Benalmádena. That is a town containing two entirely separate markets, and an average would tell you nothing useful about either.

Fuengirola

Fuengirola is a busy year-round coastal town of 80,000+ residents with a 7 km beach promenade, a historic Moorish castle, and a thriving international community. It has international schools (including the Finnish School, Sisu International), a wide range of restaurants, and excellent public transport (the Cercanías commuter train connects to Málaga in 35 minutes). OceanHome has its Costa del Sol office here. Property prices range from €250,000 for a two-bedroom apartment to €600,000+ for penthouses with sea views.

Mijas Costa

Mijas Costa sits in the hills above Fuengirola and along the coast towards Marbella. It is popular for new-build developments, golf communities, and buyers seeking more space than central Fuengirola allows. Multiple new developments offer modern two and three-bedroom apartments from around €240,000, with communal pools and gardens. The area has several golf courses and is well connected to the AP-7 motorway.

Estepona

Estepona is the second largest market we cover on this coast, with 198 listings at a median of €724,000, running from €215,565 to €6,800,000. Every single one is new build. It sits west of Marbella and has absorbed most of the recent development on this stretch of coast.

The subareas separate sharply by price. Estepona Golf is the value entry with 19 listings at a median of €436,000, and Bel-Air-Cancelada-Saladillo holds 10 at €487,500. In the middle, Arroyo Vaquero has 13 at €550,000 and Arroyo Enmedio 15 at €602,000. Las Mesas is the largest single pocket with 28 listings at €700,000, and at the top Nueva Milla De Oro runs to a median of €868,000 across 12.

Apartments dominate the stock, 121 of the 198, with 41 penthouses and only 21 villas. If you want a detached house here, expect a short list and a long wait. Read our Estepona guide for the neighbourhood detail.

Where the Coast Is Still Affordable

The Costa del Sol has a reputation for pricing out ordinary buyers. Three towns on our books say otherwise, and all three are outside the Marbella orbit.

Vélez-Málaga, east of the city on the Axarquía coast, is the cheapest we cover: 23 listings, median €324,950, entry €219,950, and a maximum of €744,640, a narrow and consistent market rather than a town with a cheap corner. The stock is entirely flats: 16 apartments and 7 penthouses.

Manilva, at the far western end near the Gibraltar approach, has 53 listings at a median of €475,000 from €288,000. Its Bahia de las Rocas quarter alone accounts for 20 listings at €453,586.

Torremolinos is the surprise: 38 listings at a median of €579,000, materially below Fuengirola next door at €625,000, and it has the best rail connection on the coast.

Set against the Costa Blanca, all three still cost more. Vélez-Málaga's €324,950 median sits above Torrevieja's €260,000 and roughly level with Guardamar's €332,500. The coast is more expensive; it is not out of reach. Browse what is live on our Fuengirola and Mijas pages.

Tax Comparison: Costa del Sol vs Costa Blanca

The 3-percentage-point ITP difference means you save €3,000 on a €100,000 property and €9,000 on a €300,000 property. For the full buying process (applicable to both regions), see our complete guide to buying property in Spain. For area comparisons on the Costa Blanca, see our best areas guide.