Best Areas for French Buyers on the Costa del Sol

The allure of the Costa del Sol, with its glorious climate, stunning coastline, and vibrant lifestyle, has long captivated international buyers. For French citizens, in particular, this sun-drenched region of Andalusia presents an exceptional opportunity for new-build property investment and relocation. Offering modern amenities, energy efficiency, and a host of contemporary comforts, new-build (obra nueva) properties are increasingly popular, allowing buyers to enjoy the best of Spanish living from day one.

This guide provides a comprehensive overview tailored for French buyers, detailing the most desirable areas, the new-build purchase process, essential tax considerations, financing options, and residency information, all in British English and supported by official Spanish sources.

Why the Costa del Sol Appeals to French Buyers for New-Build Property

The Costa del Sol is more than just a holiday destination; it’s a lifestyle choice. For French buyers, its proximity to France, excellent air links, and a familiar Mediterranean culture make it a natural extension of home. The appeal of new-build properties is multifaceted:

• Modern Design and Comfort: New developments offer contemporary architecture, high-quality finishes, and smart home technology, aligning with modern living standards.
• Energy Efficiency: Newly constructed homes adhere to the latest building regulations, resulting in lower utility bills and a reduced environmental footprint.
• Warranties and Guarantees: New-build properties come with statutory warranties from developers, providing peace of mind for buyers.
• Community and Amenities: Many new developments feature communal pools, gyms, landscaped gardens, and 24-hour security, fostering a resort-like living experience.

Best Areas for New-Build Properties on the Costa del Sol

The Costa del Sol stretches over 150 kilometres, each area offering a unique flavour. Here are some of the top locations attracting French new-build buyers:

Marbella

Renowned for its luxury lifestyle, glamorous marina, and world-class golf courses, Marbella remains a prime choice. French buyers seeking exclusivity and sophistication are drawn to its high-end new-build villas and apartments in areas like Sierra Blanca, the Golden Mile, and Nueva Andalucía. These developments often boast panoramic sea views, cutting-edge design, and premium facilities.

Estepona

Estepona has emerged as a vibrant alternative to Marbella, offering excellent value and a rapidly expanding new-build market. Its ‘Garden of the Costa del Sol’ initiative has beautified the town, and modern residential complexes are springing up along its coastline and in its hills. French families and retirees appreciate Estepona’s authentic Spanish charm, beautiful beaches, and more relaxed pace, coupled with state-of-the-art new homes.

Benahavís

Nestled in the hills just inland from Marbella, Benahavís is an affluent municipality known for its golf resorts, stunning natural scenery, and gastronomic delights. It offers some of the most luxurious and spacious new-build properties, particularly large villas and exclusive urbanisations like La Zagaleta and El Madroñal. It appeals to French buyers looking for privacy, tranquillity, and a high-end lifestyle within easy reach of coastal amenities.

Mijas

From the charming white village of Mijas Pueblo to the bustling coastal stretch of Mijas Costa, this municipality offers a diverse range of new-build options. French buyers can find contemporary apartments and townhouses with sea views in areas like La Cala de Mijas or more traditional-style new villas in the hills. Mijas provides a blend of traditional Spanish culture and modern living, with excellent infrastructure and amenities.

Fuengirola

A popular choice for families and those seeking a lively atmosphere, Fuengirola offers a wide array of new-build apartments and penthouses, often situated close to its extensive beaches and amenities. Its excellent transport links, including a direct train to Málaga Airport and the city centre, make it particularly convenient for French buyers looking for easy access and a bustling seaside town environment.

The New-Build Property Purchase Process in Spain

Purchasing a new-build property in Spain involves several key stages. It is highly advisable to engage independent legal representation to navigate the process effectively.

1. Obtain a NIE Number: The Número de Identificación de Extranjero (NIE) is your essential identification number for all financial and legal activities in Spain, including property purchase. French citizens can apply for this at a Spanish police station (Comisaría de Policía) or at a Spanish Consulate in France.
2. Open a Spanish Bank Account: Essential for making payments related to the property purchase and for setting up direct debits for ongoing costs.
3. Reservation Contract (Contrato de Reserva): This initial agreement secures the property and removes it from the market. A small reservation fee (typically €3,000 – €10,000) is paid. Your lawyer will check the developer’s title, licences, and ensure the property is free of charges.
4. Private Purchase Contract (Contrato Privado de Compraventa): Signed within weeks of the reservation, this legally binding contract outlines the terms of the sale, payment schedule, and completion date. You will typically pay 10-20% of the purchase price (minus the reservation fee) upon signing.
5. Bank Guarantees (Aval Bancario): For off-plan properties (under construction), Spanish law requires developers to provide bank guarantees or insurance policies (aval bancario) for all payments made by the buyer prior to completion. This ensures that if the property is not completed on time or the developer defaults, your funds are protected and fully refundable.
6. Payments During Construction: Scheduled payments are made in instalments as construction progresses, as stipulated in the Private Purchase Contract. Each payment should be covered by a bank guarantee.
7. Completion at the Notary (Escritura Pública): The final stage involves signing the Public Deed of Sale before a Spanish Notary Public. The remaining balance, plus all taxes and fees, are paid. The Notary ensures the legality of the transaction.
8. Property Registration: Your lawyer will register the property in your name at the Spanish Property Registry (Registro de la Propiedad). This provides full legal protection of your ownership.
9. Utilities and Services: Your lawyer can also assist with transferring utility contracts (water, electricity, internet) into your name and setting up direct debits.

Essential Taxes and Costs for New-Build Property in Andalusia

When purchasing a new-build property in Andalusia, foreign buyers need to account for specific taxes and associated costs.

• IVA (Impuesto sobre el Valor Añadido – Value Added Tax): For new-build properties purchased directly from a developer, IVA is applied at a standard rate of 10% of the purchase price. For officially protected housing (Viviendas de Protección Oficial or VPO) this rate can be reduced to 4%.
• AJD (Actos Jurídicos Documentados – Stamp Duty): This tax applies to new-build property transactions and the registration of mortgage deeds. In Andalusia, the general rate for AJD is 1.2% of the purchase price.
• Notary Fees: These are official fees for the public deed of sale. They are regulated by law and typically range from €600 to €1,000, varying with the property’s price.
• Property Registry Fees: Fees for registering the property in your name at the Property Registry, usually between €400 and €700.
• Legal Fees: Typically 1% to 1.5% (+ IVA) of the purchase price for comprehensive legal services.
• Mortgage Costs: If you are obtaining a Spanish mortgage, there may be additional valuation fees and arrangement fees. However, the AJD on the mortgage deed is now largely paid by the bank.

In total, these purchase costs typically add an extra 11-14% to the property’s price, so it is vital to budget accordingly.

Ongoing Property Ownership Costs in Spain

Beyond the purchase, property ownership in Spain entails annual running costs:

• IBI (Impuesto sobre Bienes Inmuebles – Annual Property Tax): This local council tax is based on the cadastral value (valor catastral) of the property, not its market value. Rates vary by municipality; for example, in Marbella, the urban IBI rate was 0.650% in 2024. Non-resident owners are liable for IBI.
• IRNR (Impuesto sobre la Renta de No Residentes – Non-Resident Income Tax): If you are a non-resident property owner in Spain, you are liable for this tax. If the property is not rented out, you must declare an ‘imputed income’ based on its cadastral value. If you rent out the property, you pay tax on the rental income. The general tax rate for EU/EEA residents is 19% on this income. This is declared via Modelo 210.
• Community Fees (Gastos de Comunidad): If your new-build property is part of a community (e.g., apartment complex, urbanisation), you will pay monthly or quarterly fees to cover the maintenance of communal areas, swimming pools, gardens, and security.
• Utilities: Electricity, water, gas, and internet charges will vary based on usage.
• Rubbish Collection Tax (Tasa de Basura) and Sewage Tax (Tasa de Alcantarillado): Small annual or semi-annual local taxes.
• Wealth Tax (Impuesto sobre el Patrimonio): While historically a concern, Andalusia offers a 100% bonus on wealth tax, effectively eliminating it. However, the Solidarity Tax on Great Fortunes, a state tax, may still apply to very high-value assets.

Financing Your New-Build Purchase

Spanish banks are generally keen to lend to non-residents, though the conditions differ from those for residents.

• Loan-to-Value (LTV): For non-residents, Spanish banks typically offer a maximum LTV of 60-70% of the property’s valuation or purchase price (whichever is lower). This means you will need a deposit of at least 30-40% plus funds to cover taxes and purchase costs.
• Mortgage Application: You will generally need to provide extensive financial documentation, including proof of income, tax returns, bank statements, and a credit report from your home country. Obtaining a pre-approval can significantly strengthen your position as a buyer.

Relocation and Residency for French Citizens

As citizens of the European Union, French buyers benefit from the freedom of movement within Spain. This means no visa is required to enter or reside in Spain.

1. Stays Up to 90 Days: French citizens can stay in Spain for up to 90 days within any 180-day period using just their national ID card or passport.
2. Stays Over 90 Days (Residency): For stays exceeding 90 days, French citizens must register as residents. This involves obtaining a NIE number (if not already done) and then applying for a Certificate of Registration as an EU Citizen (Certificado de Registro de Ciudadano de la Unión) at a local Foreigners Office (Oficina de Extranjeros) or police station.
3. Requirements for Residency: To obtain the EU Citizen Certificate, you will need to demonstrate sufficient financial means to support yourself and your family, and have public or private health insurance.

Purchasing a new-build property on the Costa del Sol offers an attractive prospect for French buyers, combining investment potential with an enviable lifestyle. By understanding the key areas, the purchase process, tax obligations, and residency requirements, you can navigate your journey to Spanish property ownership with confidence and ease.