The buyers who get the home they really want in spring are usually the ones who started preparing in winter. If 2027 is your year to buy on the Costa del Sol, here is what to sort out now — budget, financing, taxes, documents, area and legal checks — with the rules for residents and non-residents kept clearly apart.
Most of the stress in a Spanish property purchase doesn't come from the house hunt itself. It comes from the paperwork, the financing and the surprises nobody mentioned early enough. The good news is that almost all of it can be prepared months in advance, so that when the right home appears you can move quickly and confidently.
Every figure below has been checked against an official or published source this autumn. Tax rules change, though, so always confirm your own case with an independent adviser before you sign.
1. Set a realistic total budget, not just a price
The asking price is only part of the story. On top of it you'll pay taxes and fees, and these depend on whether the home is a resale or a new build.
- Resale homes in Andalucía pay the regional transfer tax, ITP, at a general rate of 7% in 2026, calculated on the higher of the price in the deed and the official Catastro reference value. Reduced rates exist for a buyer's habitual residence below certain price limits — so they mostly help people who will live here full-time.
- New builds pay 10% VAT (IVA) instead, plus 1.2% stamp duty (AJD) in Andalucía.
- Add notary, land registry, legal fees and, if you take a mortgage, valuation and bank costs.
A sensible rule of thumb is to keep roughly 10–13% of the price aside for costs on a resale, and a little more on a new build. Our full guide to buying costs and taxes for foreign buyers breaks this down line by line.
Worth watching for 2027: in September the Junta de Andalucía announced plans to cut the general ITP rate from 7% to 6.75% from 2027, and to raise the price limits for the reduced rates to €200,000 (and €300,000 for large families and buyers with a disability). It is meant to come through the 2027 regional budget, which still has to be approved by the Andalusian parliament — so plan on today's rates and treat any saving as a bonus.
2. Line up your financing early
If you need a mortgage, start the conversation with a Spanish bank or a specialist broker months before you plan to buy. Lenders usually finance a smaller share of the price for non-residents than for residents, and the paperwork takes time to gather: recent tax returns, payslips or company accounts, bank statements and proof of any existing debts.
An approval in principle tells you exactly what you can spend and makes your offer far more credible to sellers. If your income is in another currency, think about exchange-rate timing as well — a small swing can change your budget by thousands. Our guide to mortgages in Spain for non-residents explains how the process works.
3. Get your documents in order
The essentials for any foreign buyer are:
- A valid passport (or EU national ID card).
- An NIE, the foreigner's tax identification number. You can't complete a purchase without it, and appointments can take weeks — see our step-by-step NIE and buying process guide.
- A Spanish bank account, which makes paying taxes, utilities and community fees much simpler.
- Proof of the origin of your funds. Notaries and banks are legally required to check where the money comes from, so keep clear records of savings, sales or transfers.
4. Know which rules apply to you: resident or non-resident
This is where many buyers get caught out, so it pays to be clear from the start.
- Tax residency. As a general rule, if you spend more than 183 days a year in Spain you are considered tax resident and pay Spanish income tax on your worldwide income. Most second-home buyers remain non-resident.
- Non-residents who don't rent the property out still file an annual non-resident income tax return on an imputed income: 1.1% or 2% of the property's cadastral value, taxed at 19% for residents of the EU, Iceland, Norway and Liechtenstein and 24% for everyone else. Add the annual municipal property tax (IBI) and community fees to your running costs.
- Residency and visas. Buying a property no longer leads to residency: Spain's golden visa scheme closed to new applications in April 2025. Non-EU buyers who want to live here will need another route, such as the non-lucrative visa or the digital nomad visa.
- The proposed tax on non-EU buyers. You may have read about a proposal to tax home purchases by non-EU non-residents at up to 100% of the price. It is not law: as of spring 2026 it had stalled in Congress and had not even been debated. We'll keep following it and will update our clients if anything changes.
5. Choose your area before you choose your house
The Costa del Sol is not one market but many. Fuengirola offers a lively, walkable town with year-round life and the train to Málaga; Mijas combines a white village with golf and the beaches of La Cala; Benalmádena has its marina and family feel; Marbella and Estepona lead at the premium end. Spend a few days in each before you commit — the off-season is the best time to see how a town really lives.
Our guide to choosing the right Costa del Sol area for a second home is a good starting point, and you can browse current homes in Fuengirola, Mijas or Benalmádena, or explore new developments.
6. Plan the legal checks
Always work with an independent lawyer who acts only for you. Before you sign anything binding, they should check:
- The nota simple from the Land Registry — who owns the property and whether there are mortgages, charges or embargoes on it.
- That IBI and community fees are paid up to date.
- That the property matches its planning and licence status, including any extensions or pools.
- For a new build, the first occupation licence, and for an off-plan purchase, that your stage payments are protected by a bank guarantee or insurance. Our guide to buying off-plan covers this in detail.
- If the seller is a non-resident, the buyer must withhold 3% of the price and pay it to the Spanish tax agency on the seller's behalf — your lawyer will handle it, but it's good to know why it appears on the completion statement.
A simple timeline
- Now to January: set your budget, request your NIE, open a bank account and talk to lenders.
- February to March: shortlist your areas and start viewings, ideally with financing approved in principle.
- Spring: make your offer, sign the reservation and private contract after your lawyer's checks, then complete at the notary.
For a sense of where the market is heading, read our 2026 review and 2027 outlook for the Málaga property market.
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Preparing early is the best way to turn a dream into a smooth purchase. If you'd like help planning your 2027 move — from choosing an area to coordinating your lawyer and bank — take a look at our sales services or get in touch. We'd be delighted to help you find your place on the Costa del Sol.
The GR Estates Team
The best experiences on the Costa del Sol
Written with AI assistance and reviewed by the GR Estates team before publication. AI transparency
