Best Areas on the Costa del Sol for British Buyers

The Costa del Sol remains the single most popular stretch of Spanish coast for British buyers, and choosing the right area matters as much as the property itself. This guide compares the best areas on the Costa del Sol for British buyers, from Marbella to Nerja, and sets out exactly what you will pay in tax, what changes now that the UK is outside the EU, and how the buying process works for a non-resident. Costa del Sol covers roughly 150 km of Malaga province coastline, so the right choice depends on budget, lifestyle and how often you plan to be here.

Why British buyers keep choosing the Costa del Sol

The draw is a mix of climate (around 300 days of sunshine a year), direct flights into Malaga-Costa del Sol Airport from most UK regional airports, an established British community with English-speaking lawyers, doctors and schools, and a deep new-build market. Prices span a wide range: entry-level apartments in the eastern and western fringes sit well below the trophy villas of Marbella, so there is genuinely something at most budgets.

The best areas on the Costa del Sol for British buyers

Marbella and the Golden Mile (premium)

Marbella is the benchmark for luxury on the coast: the Golden Mile, Puerto Banus, Nueva Andalucia (“Golf Valley”) and Sierra Blanca. It offers the widest choice of high-end new-build villas and branded residences, international schools and year-round amenities. Expect the highest price per square metre on the coast. Ideal for buyers prioritising prestige, rental yield and a fully serviced lifestyle.

Estepona (value with a genuine town)

Estepona has become the coast’s standout for new-build value, with a heavily invested old town, a long promenade and a strong pipeline of modern apartment developments. It appeals to British buyers who want Marbella proximity (around 20 minutes) without Marbella pricing, plus an authentically Spanish town centre.

Mijas, Fuengirola and Benalmadena (the family middle)

This central cluster is the traditional heartland of British ownership. Fuengirola and Benalmadena offer beachfront apartments, a long-established expat infrastructure and excellent transport (the Cercanias C-1 train runs to Malaga and the airport). Mijas Costa and inland Mijas Pueblo add golf resorts and white-village charm. Good for year-round living and reliable holiday-let demand.

Malaga city (urban, all-year)

Malaga has transformed into a cultural capital with museums, a growing tech scene and a walkable historic centre. It suits buyers who want a genuine Spanish city rather than a resort, want to be car-free, or plan to rent to a mix of tourists and long-term tenants. New-build supply within the city is tighter, so stock moves quickly.

Nerja and the Axarquia (eastern, quieter)

East of Malaga, Nerja and the Axarquia offer a slower pace, dramatic scenery and lower prices than the western resorts, while staying within an hour of the airport. Popular with British buyers seeking a more traditional Andalusian feel and a village community.

Sotogrande and Manilva (western, exclusive but relaxed)

At the far western end, Sotogrande is a low-density, high-end enclave known for polo, marina living and international schooling, with neighbouring Manilva and Casares offering newer, more affordable coastal developments. Suits buyers wanting privacy and space over resort bustle.

What British buyers pay in tax and fees on purchase

The headline tax depends on whether the home is new-build or resale. For a new-build bought directly from the developer (first transfer), you pay IVA (VAT) at 10% of the price, plus Actos Juridicos Documentados (AJD, stamp duty) at 1.2% in Andalusia. ¹² The reduced 4% IVA applies only to officially protected housing (VPO). The 10% rate also covers up to two garage spaces and a storeroom when bought together with the home. ²

For a resale property you pay Impuesto sobre Transmisiones Patrimoniales (ITP) instead of IVA, charged at the general Andalusian rate of 7%, applied to the higher of the deed price or the official reference value (valor de referencia). ¹³ Resale purchases do not pay the separate AJD.

As a rule of thumb, budget roughly 12% to 14% on top of the price for a new-build and 9% to 11% for a resale, before mortgage costs. Every buyer also needs an NIE (Numero de Identidad de Extranjero) before completing; see our related guide on getting an NIE and opening a Spanish bank account.

Ongoing and exit taxes as a non-resident owner

Since Brexit, UK owners who do not live in Spain are non-residents, which changes your annual obligations. If the property is for your own use and not rented, you still file the non-resident income tax (IRNR) using Modelo 210 each year on a deemed “imputed” income: the taxable base is 1.1% or 2% of the cadastral value (depending on when that value was last revised), and non-EU residents (which now includes UK nationals) are taxed at 24%, versus 19% for EU/EEA residents. ⁴ If you let the property out, you are taxed on the actual rental income, and note that UK non-residents cannot deduct expenses in the way EU/EEA residents can. ⁴

You also pay the annual IBI (Impuesto sobre Bienes Inmuebles), the local property tax set by each town hall as a percentage of cadastral value, plus community fees and rubbish charges. When you sell, a non-resident faces two things: the buyer must withhold 3% of the price and pay it to the tax office via Modelo 211 as an advance against your gain, and you then settle any capital gains through Modelo 210, reclaiming the excess if the 3% overpaid. ⁵ The municipal plusvalia (IIVTNU), a tax on the increase in land value, is normally paid by the seller as well.

Residency, visas and time limits after Brexit

Buying a home does not give you the right to live in Spain. As a British national you can spend a maximum of 90 days in any rolling 180-day period in the Schengen area without a visa. ⁶ Owning property does not extend that allowance. Spain also ended its Golden Visa (residency by property investment) on 3 April 2025, so buying real estate is no longer a route to residency at all. ⁷

If you want to live here for longer, the main routes are the Non-Lucrative Visa (for those living on savings, pensions or passive income, which requires proof of substantial annual means and private health cover) and the Digital Nomad Visa (for remote workers and the self-employed). These are separate applications unrelated to your purchase; see our related guide on the Non-Lucrative Visa for the current income thresholds.

Mortgages and the buying process for non-residents

Non-resident mortgages are available from Spanish lenders but on tighter terms than for residents. Non-residents are generally capped around 60% to 70% loan-to-value, and UK buyers as non-EU applicants often sit at the lower end of that band, so plan for a deposit of at least 30% to 40% of the price plus all the purchase costs above. The loan is calculated against the lower of the bank’s valuation or the purchase price, not the asking price.

The typical process runs: reserve the property, get your NIE, open a Spanish bank account, appoint an independent lawyer to run due diligence (title, licences, community debts, and for off-plan the developer’s permissions), sign the private purchase contract, then complete before a notary. For off-plan purchases, Spanish law requires the developer to guarantee your stage payments through a bank guarantee or insurance policy, so any money you hand over before completion is protected if the build fails to deliver. Always confirm those guarantees are in place before paying; our related guide on buying off-plan on the Costa del Sol covers the checks in detail.

In short, match the area to your priorities (Marbella and Sotogrande for the premium end, Estepona and the Mijas-Fuengirola-Benalmadena belt for value and year-round living, Malaga city for urban life, Nerja for a quieter east), then build the full tax and non-resident picture into your budget from the outset.