Best Areas on the Costa del Sol: Marbella vs Estepona vs Mijas vs Fuengirola
Marbella, Estepona, Mijas and Fuengirola each suit a different foreign buyer: Marbella for prime prestige, Estepona for growth and value, Mijas for green hillside living and Fuengirola for walkable, well-connected town life. Whichever you choose, budget 10% IVA plus 1.2% AJD on a new build in Andalusia and plan for non-resident taxes from day one.
Choosing the best areas on the Costa del Sol is really about matching a town to how you want to live and what you want to spend. This guide compares four of the most popular destinations for foreign buyers of new-build property, Marbella, Estepona, Mijas and Fuengirola, and then sets out the taxes, mortgage rules and visa options that apply to any non-resident purchase in Andalusia. All four sit on the western Costa del Sol within roughly 30 to 45 minutes of Malaga airport, so the differences are about character, price and lifestyle rather than access.
Marbella: prime prestige and international polish
Marbella remains the benchmark for luxury on the Costa del Sol. It combines the historic old town, the marina glamour of Puerto Banus, the exclusive villa enclaves of the Golden Mile and Sierra Blanca, and a golf-rich hinterland at Nueva Andalucia. For foreign buyers it offers the deepest pool of high-end new-build apartments and gated developments, international schooling, private healthcare and year-round services in multiple languages.
The trade-off is price: Marbella is consistently the most expensive municipality of the four, and prime addresses command a significant premium. It suits buyers who prioritise prestige, resale liquidity and a cosmopolitan lifestyle over value per square metre.
Estepona: growth, value and the “Garden of the Costa del Sol”
Estepona has reinvented itself over the past decade with a restored old town, its flower-filled streets, a modern promenade and a wave of new-build projects. It typically offers better value than Marbella while sitting just to the west along the same coastline, which is why it has become one of the fastest-growing choices for foreign buyers seeking newer stock at more accessible prices.
Estepona works well for buyers who want a genuine Spanish town feel alongside modern developments, and who are comfortable being a little further from the Marbella and Malaga hubs in exchange for value and a strong pipeline of new homes.
Mijas: green hillside living and family appeal
Mijas spans three distinct zones: the whitewashed mountain village of Mijas Pueblo, the coastal strip of Mijas Costa (including La Cala de Mijas), and the residential and golf areas in between. It is popular with families and buyers who want greener, more open surroundings, sea views from the hills and a quieter pace, while staying close to the coast and to Fuengirola for services.
New-build supply in Mijas is strong, particularly townhouses and apartment complexes with communal pools and gardens. If you want space, nature and golf without the Marbella price tag, Mijas is a natural shortlist entry. Buyers weighing this against neighbouring towns may also want a Fuengirola area guide and a Mijas Costa lifestyle guide alongside this one.
Fuengirola: walkable, connected town life
Fuengirola is the most urban and walkable of the four. It has a long beachfront, a dense mix of restaurants and shops, an established international community and, crucially, a direct Cercanias commuter train line linking it to Malaga city and the airport. That connectivity, plus lower entry prices than Marbella, makes it a favourite for buyers who want year-round town amenities and easy travel without needing a car every day.
New-build options in central Fuengirola are more limited than in Mijas or Estepona because the town is already built up, so many newer projects sit on the fringes towards Mijas or Los Boliches. It suits buyers who value convenience, rental demand and a lively, all-year atmosphere.
At a glance: which area fits which buyer
| Area | Best for | Character | Relative price |
|---|---|---|---|
| Marbella | Prestige, luxury new-builds, resale liquidity | Cosmopolitan, high-end | Highest |
| Estepona | Value plus modern stock, Spanish town feel | Growing, authentic | Mid, good value |
| Mijas | Families, green hillside living, golf | Spacious, natural | Mid |
| Fuengirola | Walkability, train access, rental demand | Urban, lively | Lower entry |
Buying a new build: the taxes every foreign buyer should budget
Wherever you buy on the Costa del Sol, the property tax framework is set at national and Andalusian level, so it does not change between these towns. For a new-build (first transmission from the developer) you pay IVA at 10% of the price 1, plus Andalusia’s Impuesto sobre Actos Juridicos Documentados (AJD) at 1.2% 2. Note that garages and storerooms bought separately from the home are taxed at the general 21% IVA rate rather than 10% 1. Resale (second-hand) homes work differently: they carry ITP instead of IVA and AJD, generally 7% in Andalusia 2, not covered further here.
On top of tax, budget for notary, Land Registry and legal fees, and obtain your NIE (foreigner identification number) early, as you cannot complete or pay taxes without it.
Off-plan protection: Ley 57/1968
If you buy off-plan and pay stage payments before completion, Spanish law requires the developer to safeguard those payments through a bank guarantee or insurance policy under Ley 57/1968. If the home is not delivered as agreed, you are entitled to recover 100% of the sums paid plus statutory interest, and these protections cannot be waived in the contract 3. Always confirm the guarantee is in place before transferring any deposit.
Ongoing and exit taxes for non-residents
Owning as a non-resident brings recurring obligations. You pay annual IBI (local property tax) to the town hall, the rate of which is set locally and varies by municipality. You must also file Modelo 210 for IRNR (non-resident income tax). If the property is for your own use, tax is charged on an imputed income equal to 1.1% or 2% of the cadastral value (1.1% where the cadastral value was revised in the tax year or the previous ten years, otherwise 2%), taxed at 19% for EU/EEA residents and 24% for non-EU residents such as UK nationals 4. If you let the property, you declare the actual rental income instead.
When you sell, the buyer must withhold 3% of the price and pay it to the tax authority via Modelo 211 as a payment on account of your capital gains tax 5. Your actual gain is then taxed at a flat 19% for non-residents, declared on Modelo 210 within roughly four months of the sale, and you may reclaim any excess withheld 6. Separately, the town hall levies plusvalia municipal on the increase in urban land value during your ownership 6.
Mortgages for non-residents
Spanish banks typically lend non-residents around 60% to 70% of the property’s appraised value, so plan for a deposit of at least 30% plus purchase costs. Terms are usually shorter than for residents, commonly 20 to 25 years 7. Getting a mortgage agreed in principle before you commit helps you budget accurately, since the bank valuation, not the sale price, sets the loan ceiling.
Visas and residency
Buying property no longer grants residency. Spain abolished its investor “Golden Visa” under Organic Law 1/2025, with the route closing on 3 April 2025 8. Non-EU buyers who want to live in Spain now typically use the Non-Lucrative Visa (for those living on savings, pensions or investment income), the Digital Nomad Visa or the Entrepreneur Visa. The Non-Lucrative Visa income threshold is tied to the IPREM index at 400% for the main applicant (around 2,400 euros a month in 2026), plus roughly a further 100% of IPREM per additional family member; the exact figure is set annually, so confirm the current amount before applying 8. EU/EEA citizens do not need a visa but should register their residency if staying long term.
How to choose
Shortlist on lifestyle first, then price. Choose Marbella for prime prestige and the widest luxury new-build market, Estepona for modern value and a Spanish town feel, Mijas for green, family-friendly hillside living, and Fuengirola for walkable, well-connected town life with strong rental demand. Then apply the same tax and financing checklist to whichever you pick. For deeper reading, see related guides on new-build buying costs in Andalusia, non-resident taxes in Spain and the Non-Lucrative Visa.
Frequently asked questions
Which is the cheapest of the four areas to buy in?
As a general rule Fuengirola offers the lowest entry prices, followed by Estepona and Mijas, with Marbella the most expensive. Prices vary widely by location within each town, so compare specific developments rather than town averages.
What taxes do I pay on a new-build home on the Costa del Sol?
On a new build you pay 10% IVA plus 1.2% AJD in Andalusia, plus notary, registry and legal fees. Garages or storerooms bought separately are taxed at 21% IVA. Resale homes instead pay ITP, generally 7% in Andalusia.
Do I still get residency if I buy property in Spain?
No. Spain abolished the investor Golden Visa on 3 April 2025 under Organic Law 1/2025. Non-EU buyers who want to live in Spain now use routes such as the Non-Lucrative, Digital Nomad or Entrepreneur visa.
How much can a non-resident borrow for a Spanish mortgage?
Spanish banks typically finance around 60% to 70% of the appraised value for non-residents, so expect to fund at least 30% plus purchase costs yourself, over a term of roughly 20 to 25 years.
What is Modelo 210 and do I have to file it?
Modelo 210 is the non-resident income tax (IRNR) return. Even if you only use the home yourself, you must file it and pay tax on an imputed income of 1.1% or 2% of the cadastral value, at 19% (EU/EEA) or 24% (non-EU).
What happens tax-wise when I sell?
The buyer withholds 3% of the price via Modelo 211 as an advance on your capital gains tax. Your gain is taxed at a flat 19% for non-residents on Modelo 210, and you may reclaim any excess. The town hall also charges plusvalia municipal.
