Apartments for sale in Spain: A detailed guide for foreigners

Intro

When you search “houses for sale Costa del Sol” in Google, you get over 11 million results. To say the choice is wide would be an understatement. 

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But buying a house in Spain as a foreigner can seem complex. Not only do you have to decide on the location, your budget, and type of property. You must also handle a lot of paperwork. Luckily, you don’t have to do it alone – if you work with a realtor, it’s going to be a smooth experience.

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I put this guide together to help you understand everything you need to know when buying property in Spain – from selecting the best area to choosing the right property type to secure the highest ROI.

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Does buying real estate in Costa del Sol truly make sense? 

“Is buying property in Spain a good idea, or will it turn out to be an unrealistic fantasy when I take a closer look?”. That’s a question I myself faced back in 2017, before I first relocated to Spain. The short answer is – it’s a perfectly realistic option and a great investment idea, especially if you purchase in Costa del Sol. Here’s why.

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Not that long ago, buying property in Spain used to be unattainable to a lot of Europeans, including Poles. But now that real estate prices have skyrocketed in Warsaw (and in other major cities in Northern Europe), getting a place in Spain has become a viable option. The numbers say it all. In mid-2024, the average price per metre square in Warsaw was €3,465, while in Costa del Sol – €2,412. 

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The region covers a big part of Spain’s southernmost Mediterranean coast, and is perfect for a variety of investment goals (or lifestyles, if you’re looking for a home-away-from-home).  For starters, it gets well over 300 sunny days per year, with temperature lows around 20 degrees Celsius. This means the tourist season never truly comes to a stop here, unlike in Greece or Italy. 

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Costa del Sol includes such tourist hotspots like Picasso’s hometown Málaga and Marbella, as well as quieter towns like Estepona, Fuengirola, and Mijas. On top of apartments for sale on the Costa del Sol’s seaside (particularly popular for holiday rentals), you can also choose from houses located in-land. These not only offer a quieter vibe during the summer, but are also closer to Spain’s winter ski resorts in Sierra Nevada. 

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Now, nothing will tip the scales in favor of buying property here as ROI over the past few years. Rental and per square metre square prices are not only stable; they’re growing. Between 2023 and 2024, rentals in Spain have risen by 2.2%, which is the highest rise since 2009. As for real estate value, cities like Marbella (where we’re based at Hometailor) had a year over year increase of 12.9%.

What about the potential risks?

Of course, there are also a few things you should be aware of to protect your future investment in Spain. First of all, I would advise you against buying cheap, too-good-to-be-true properties – especially, if they’re based in rural areas. My experience as a realtor is that a lot of these buildings require way more than touch-ups like new kitchen appliances or repainting the walls. Sometimes the hidden costs of renovation will exceed what you’d pay per metre square in a new building.

Secondly, some parts of the country are now placing limits on tourist licenses. This relates, in particular, to Northern parts of the Mediterranean Coast, including Barcelona and popular tourist cities along Costa Brava. The good news for investors is that areas like Costa del Sol maintain much more liberal policies for short-term rentals.

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Finally, I must mention squatters, also called “okupas”, who are probably the most controversial real estate topic in Spain. It’s a marginal issue in Costa del Sol, in big part because there are plenty of residents living here all year round. Here’s my take on the subject – as a realtor and local.

Should you really be concerned about “okupas”?

Squatters in Spain have received a lot of bad press in recent years, but the media have exaggerated the issue. While I am not saying you should ignore it completely, I wouldn’t lose sleep over it. “Okupas” tend to prefer specific types of properties. They like abandoned, poor quality real-estate in remote locations, company-owned properties from large-scale real estate investments in Spain and bank-repossessed homes from unpaid mortgages. 

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A fear of squatters shouldn’t stop you from buying property in Spain. Here is what you can do to protect yourself from illegal residents: 

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• Pick the right location – choose a location with secure, gated communities to reduce the risk of unwanted residents. Marbella, for example, offers high-end properties in neighborhoods like Sierra Blanca and Los Monteros, known for safety and strong police presence.  

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• Work with a trusted realtor – a local broker can help you navigate Costa del Sol’s many property options, advising you on the safest neighborhoods and areas to avoid due to squatters. Their expertise ensures you find the ideal property in a secure location.  
• Rent your property when away – renting out your property when you're not there provides extra income and discourages squatters. A reliable real estate agency can handle the rental process, ensuring your property remains occupied and well-maintained.  
• Know your neighbors – building good relationships with neighbors can help keep your property safe. They can watch over your home, alert you of suspicious activity, and contact authorities if necessary.  
• Take care of security doors, cameras, and alarm systems – invest in strong security doors, cameras, and alarm systems to deter illegal residents. Even basic smart home technology or security stickers can make your property less appealing to squatters.
• Don’t post photos of your real estate on social media – I know it might be tempting to show your newly purchased property to the world but try not to. Sharing photos online might reveal your absence to potential squatters.

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Apartments for sale in Spain – what should you consider?

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The choice of properties in Spain is huge, with plenty of luxurious apartments for sale in Costa del Sol. Try not to get carried away though, purchasing real estate is an important decision, which shouldn’t be taken lightly. So, how to buy property in Spain to make sure it’s a good investment? There a few things you should consider: 

• Meeting your goals – before buying, clarify your plans. Will you rent the property to tourists or use it as a vacation home? If renting, check if the property qualifies for a tourist licence, as some areas ban vacation rentals or charge higher community fees.
• Location – whether you dream of a remote villa or a town-centre apartment, consider access to essential services. How far is the nearest grocery store, pharmacy, or clinic? For remote areas, check if public transport is nearby and ensure you can manage in emergencies. In coastal towns, English is common, but in rural areas, Spanish is key.
• Neighbours – problematic neighbours can affect your living experience. Ask the seller about any disputes or police reports, and try to gather information from locals to avoid surprises.
• Property age – older homes are charming but often require renovations, which can uncover hidden issues. Check for cracks, dampness, or other structural problems that may need attention. If you plan renovations, ensure you know what permits are required.
• Drains and guttering – inspect drains and guttering, as repairs can be costly. If possible, hire a professional to inspect the property, including pipes hidden underground, to avoid unexpected expenses.
• Potential mould – in humid areas, especially near the Atlantic, older properties can develop mould. Ensure the property has proper insulation to prevent this, especially after the wet winter months.
• Ownership history – review the property’s ownership history to spot any potential issues. Frequent changes in ownership may indicate problems, and understanding why the property is being sold can offer valuable insights.

Should you pick Costa Blanca or Costa del Sol?

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One of the key decisions you’ll have to make is where to buy your real-estate. Costa Blanca and Costa del Sol are two of the most popular regions, which lure investors. Both locations are spectacular, and have lots to offer, so here is a quick overview of the two:

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If you need a more detailed comparison, here is a detailed article about it – Costa Blanca vs Costa del Sol – where to buy your property. 

What types of real estate are most popular among Polish buyers?

If you’ve ever read interviews with Poles who decided to invest in real estate in Spain, then you might have gotten the impression that they mostly choose apartments in new buildings. If so, you’re completely right.

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Polish investors heavily favor new developments over resale properties, as they value the convenience (and safety) that comes with being the first owner. New builds in Costa del Sol are usually ready for immediate occupancy, with finished floors, kitchens, bathrooms, and installed appliances—no need for extensive renovation. 

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Only about 25% of all buyers invest in older buildings, such as traditional Andalusian villas. These can be renovated into stunning homes, but the cost of renovation can be overwhelming, especially if structural issues arise. While Spanish law requires sellers to disclose any problems they’re aware of, the reality is that not everyone follows this rule.

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The remaining 75% of Polish buyers investing in newly-built properties usually opt for apartments, which have a size of between 80-250m2. Those purchasing houses frequently go for villas with private pools and a metre square size between 250 and 600m2. Here’s an example of this type from our listings:

As for budget and location, Polish investors buying property in Spain typically spend between €350,000 and €1,500,000. From my observations, the most popular cities include Benalmadena, Estepona, Mijas, and Fuengirola. 

While most buyers finalize transactions in cash, it’s worth mentioning that Spain offers favorable mortgage options when buying a house in Spain as a foreigner. 

Apartments for sale in Spain – what costs to consider in Andalusia

Now, let’s discuss the costs of buying a house in Spain in a bit more detail. The typical range I’ve mentioned for properties bought by Poles in the Costa del Sol region, that is, €350,000 – €1,500,000, doesn’t really say much, since the standards, square footage, and location vary greatly. 

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So, I thought I’d discuss the expenses that are common for most buyers, as they relate to administrative and legal procedures involved in the property buying process. As we’re based in Andalusia, the costs I mention relate to this region (which is also known as one of the most investor-friendly areas in the country).

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As I don’t want to flood you with tens of tax names and rates here, I’ll mention just a few of the most important ones – if you want a full overview, I highly recommend you give our property cost guide a read. 

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We’ve put it together in collaboration with our lawyer in late 2024, and it’s the most detailed estimate on buying and owning a property in Spain online. 

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Now, time for the most note-worthy numbers when buying your new place, starting off with some good news…

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• Agency commission – ZERO. The buyer never pays the agency’s fee, it’s on the seller’s side. So, that’s one significant expense off your list!

• Property Transfer Tax (ITP). Applies to resale properties only, and stands at 7% of the transaction price. You need to pay it within 30 working days from signing the paperwork. So, if you purchased a place for €350,000, then your tax would be €24,500.
• VAT (10%) and stamp duty (1.2%) – for new houses and apartments for sale in Costa del Sol. For a new €200,000 apartment you’d pay €22,400 in both costs.

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Universal costs for both new and resale places include:

• Notary fees – typically a flat fee of €1,000 for properties under €500,000
• Legal fees – around 1% of the property sale price
• Land registry fees – around €700-800 per entry

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If you’re interested in a specific property and want to understand the expenses, reach out – we’ll help assess the costs as accurately as possible!

Don’t make these mistakes while buying real estate in Costa del Sol  

When buying a house in Spain as a foreigner, many people focus only on the price, but that’s just the tip of the iceberg. Beyond the purchase price, you’ll need to budget for taxes, notary fees, registration costs, and if you need financing, keep an eye on currency fluctuations. A small drop in the exchange rate could impact your budget significantly, so make sure you account for these expenses upfront. 

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I recommend seeking professional legal advice, especially when buying abroad. It’s essential to have a lawyer who knows the local real estate laws and can guide you through the process. A good lawyer will help you navigate potential legal pitfalls, ensure the property is free of debts or liens, and verify the seller’s ownership. It might cost you a little extra, but it will be worth it and you’ll thank me later. 

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Location matters more than you might think. Take the time to research the area for things like amenities, transport links, and future developments. These factors will not only affect your daily life but also your property’s future resale value. If you can, visit the area in person to get a feel for the place, or enlist a local realtor to give you the scoop.

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Be cautious of too-good-to-be-true deals. Make sure to check the property’s registry for any hidden issues or upcoming construction that could affect your living experience. A trusted real estate agent can help spot potential red flags and steer you clear of scams.

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One last thing, don’t forget about long-term costs like community fees and property management.

These ongoing expenses can sneak up on you, so it’s best to get an estimate upfront to avoid surprises down the road. By doing your homework and getting the right advice, you’ll be well on your way to making a smart and informed property investment.

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Buying real estate in Costa del Sol can be the greatest investment decision you’ll make if you approach it right. And the best way to stay out of trouble is to work with a trusted realtor. 

Why should you work with an agency instead of buying property in Spain privately?

Whenever I’m asked this question, the quickest (and strongest) answer is that it comes at zero risk or cost for the buyer. In fact, it lowers your risks significantly, as the real estate market operates differently here than in Poland or other European countries.

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Unlike there, you don’t have a full catalogue of available properties on listing sites like OLX or Otodom. Most places that are up for sale can only be viewed by licensed realtors. By working with an agency like Hometailor, you can tap into a wide range of real estate offers – not only our “exclusives”, but also those sold by other agencies. So, you don’t have to work with multiple partners to view all homes or apartments in the area you’re interested in. That’s a huge time-saver.

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Secondly, as we’re based here, we know our region inside out. If you tell us what makes for a dream real estate – be it a peaceful villa tucked away in the mountains or a chic seafront apartment – we’ll be able to shortlist offers for you super fast. We can even organize an on-site viewing of your top favorites, if you’re willing to fly into Costa del Sol for a few days.

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Also, bear in mind that realtors have a much higher bargaining power than private buyers. If you really like a property, we can work our magic and see if we can negotiate a discount. 

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These are just a few of the reasons why it makes sense to work with an agency – you can find additional benefits in our article on why it’s worth buying real estate in Spain through a reputable agency.

How to decide which agency to work with in Costa del Sol? 

There are over 400 real estate agencies in Costa del Sol alone, choosing the one to work with might seem overwhelming. So, I came up with 7 things you should pay attention to to pick the best real estate agency while searching for houses for sale in Costa del Sol. 

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Don’t ask for recommendations on online forums
While online forums like Facebook or Reddit may offer suggestions, they can lead to confusion and unreliable advice when it comes to buying property in Costa del Sol. Realtors sometimes list properties that aren't in their portfolio, hoping to collect your details for future sales – don’t fall into this trap. 

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Pick an agent who specialises in the area you’re interested in
If you’re looking for apartments for sale in Costa del Sol then go with a realtor who is familiar with the area. A local agent will have expert knowledge of property prices, amenities, and future developments, helping you make an informed decision.

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Select a smaller agency
Smaller agencies offer a more personalized experience, local expertise and better communication. Unlike larger firms, they are more flexible and committed to building stronger client-agent relationships for a smoother property-buying experience.

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Work with someone who understands your background
Choose a realtor who speaks your language and knows the local market well. This way, you’ll avoid miscommunication and get expert guidance on the unique factors that led you to invest in Costa del Sol.

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Honesty is key
A transparent agent will openly tell you about any potential downsides to the property or area you’re interested in and be clear about their ability to negotiate on your behalf, ensuring a fair and ethical transaction.

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Work with one agent only
Don’t work with multiple agents, as it will only lead to confusion and missed opportunities. By sticking with one agent, you give them a chance to get to know you and fully understand your needs. This should result in a more focused and efficient property search.

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Choose an agent who understands your investment goals
While buying a house in Spain as a foreigner be sure to select a realtor who tailors recommendations based on your specific investment strategy. Whether you're seeking a vacation rental property or a quiet retreat, an agent should align their advice with your vision.

Is it worth buying real estate in Spain in 2025 and beyond?

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Since real estate investments are never made lightly, it’s important to do your research before buying a property – both here in Spain and elsewhere in the world.

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As someone who moved to Spain years ago and also works in the real estate industry, I believe the country – especially its southernmost Costa del Sol – offers promising profits. Not only from short-term rentals in the summer season, but also thanks to expected real estate price increases.

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Here are a few factors that affect my opinion:

• Spain has a good fragile state index of 44. The country has learned its lesson after getting hit quite badly by the economic crisis back in the late 2000s. The 44 index has stayed around this level since 2021, so we’re now looking at a third consecutive year. 
• Andalusia offers some of the most summer rental-friendly procedures in the country. Unlike in Costa Brava, legislators aren’t limiting tourist licenses here. I expect to see even more interest from tourists the closer we get to 2028, when Catalunya is set to ban short-term rentals entirely. A lot of interest from tourists will shift here as a natural consequence.
• Property prices have increased by over 14% in the entire country since 2019. Some parts, like Costa del Sol’s Marbella, have even seen a 24% rise in per square metre just between 2023 and 2024. 
• A lot of real estate types to choose from for your investment property in Spain – the country has it all; new developments, resale apartments, and traditional villas. I particularly suggest checking your options in Costa del Sol, where you’ll find plenty of new properties, which are in high standard and ready to move in or rent out almost immediately.

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At Hometailor, we have access to hundreds of properties across the entire Costa del Sol region, including over 150 new developments and an extensive collection of luxury villas.

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Our team speaks Polish, English, Swedish, and Spanish. Feel free to reach out – I’m sure we’ll be able to help you find your dream property!

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