Guides

Introduction
Costa del Sol has long been one of Europe’s most attractive destinations for real estate investors. With over 320 days of sunshine per year, a stable legal framework and growing international demand, it has historically offered solid returns. But in 2025, with higher interest rates and global market shifts, many foreign investors are asking: is Costa del Sol still a safe bet?

This article explores the main reasons why Costa del Sol remains a strong investment, the current market data, and the risks to keep in mind.

Market Overview 2025
- Average price per m² (2025): €3,300
- Price growth in the last 5 years: +21%
- Rental demand: very high due to tourism, digital nomads and international relocation

Rental Yield in Costa del Sol
- Long-term rentals: 3.5% – 4.5% annual yield
- Holiday rentals: 5% – 7% annual yield in prime locations (Marbella, Málaga, Estepona)

Example:
- Apartment in Estepona at €350,000
- Average holiday rental income: €1,800/month
- Annual yield: 5.5%

Why Investors Still Trust Costa del Sol
- Strong international demand: established Scandinavian, British, German and French communities
- Connectivity: Málaga Airport offers direct flights to Copenhagen, Stockholm, Oslo
- Diversification: Spanish real estate seen as protection against inflation
- Liquidity: high demand ensures a dynamic resale market

Risks to Consider
- Overpaying in premium areas without local advice
- Tax differences for EU vs non-EU buyers
- Property management costs if not residing full-time in Spain

Conclusion
Even in 2025, Costa del Sol remains one of the safest and most profitable real estate markets in Europe. For investors seeking medium- to long-term returns, the combination of capital appreciation and rental income offers stability and growth.

 If you are considering investing in Costa del Sol, I will guide you step by step with a boutique service that ensures transparency, security and personalized support.

Introduction
One of the main questions foreign investors ask when buying property in Costa del Sol is: how profitable will my investment be? Rental yield – the return generated by renting your property – is one of the key indicators. In this article, I will explain how rental yield works, the current averages in Costa del Sol, and how to maximize it with a clear strategy.

What is rental yield?
Rental yield measures the annual income from renting a property compared to its purchase price. For example:
- Property price: €300,000
- Annual rental income: €15,000
- Rental yield = 5%

Rental yield in Costa del Sol (2025 averages)
- Long-term rentals: 3.5% – 4.5%
- Holiday rentals: 5% – 7%
- Premium locations (Marbella, Málaga, Estepona) reach the highest yields.

Long-term vs holiday rentals
Example 1 – Long-term rental:
- Apartment in Málaga city: purchase €280,000
- Monthly rent: €1,100
- Annual yield: 4.7%

Example 2 – Holiday rental:
- Apartment in Marbella: purchase €350,000
- Average monthly income: €1,900
- Annual yield: 6.5%

Factors that influence profitability
- Location: areas with international schools and services attract stable tenants.
- Property type: small apartments rent faster; villas generate higher holiday income.
- Property management: professional services can increase occupancy by up to 20%.

Why boutique advisory makes the difference
Numbers are important, but trust and guidance are essential. Scandinavian buyers in particular worry about the complexity of the process. With me, you will always work directly with a trusted advisor, in English, who explains every step with clarity and helps you choose the right property to achieve your rental goals.

Conclusion
Rental yield in Costa del Sol remains one of the strongest in Europe, especially when comparing holiday and long-term rental opportunities. With the right strategy and guidance, you can secure a profitable and safe investment.

 If you want to maximize your rental yield in Costa del Sol, I will guide you step by step with a boutique service that ensures transparency, profitability and peace of mind.

Introduction
Every year, thousands of international investors buy property in Costa del Sol. Although it is a safe and profitable market, many make mistakes due to lack of local knowledge or by trusting agencies focused on fast sales rather than tailored advice.

These mistakes can cost tens of thousands of euros and create legal or tax problems in the long run. Here we review the most common ones, with real numerical examples, and how to avoid them thanks to a boutique, transparent and personal service.

Mistake 1 – Not calculating taxes and additional costs
Foreign investors often focus only on the purchase price, forgetting other costs such as:
- VAT (10%) on new builds.
- AJD (Stamp Duty in Andalusia: 1.2%) on new builds.
- ITP (Property Transfer Tax: 7%) on resales.
- Notary and land registry fees (1–1.5%).
- Annual Non-Resident Income Tax declaration (IRNR), even if the property is not rented.

Example: Buying a new build apartment at €350,000 without calculating taxes can result in almost €40,000 in extra costs (VAT + AJD + notary + registry).

Mistake 2 – Choosing the wrong location
Some buyers focus only on price without analyzing rental demand:
- Family-friendly areas (Mijas, Benalmádena) → better for long-term rental.
- Urban areas (Málaga city) → high occupancy, 4.5–5% rental yield.
- Premium areas (Marbella, Estepona) → holiday rentals, 5–6% rental yield.

Example: Buying in an area with low rental demand can mean losing €5,000–8,000 per year in missed income.

Mistake 3 – Not reviewing the legal situation
In Spain, it is common to find properties with:
- Outstanding mortgages.
- Unregistered renovations.
- Incomplete licenses.

Without a legal check, you could buy a property that cannot be rented or resold until regularized, costing thousands in legal fees and years of waiting.

Mistake 4 – Overpaying in premium areas
In Marbella and other premium zones, foreign buyers often pay 10–15% above market value if they lack independent advice.

Example: This can mean paying €50,000 too much for a €500,000 apartment, reducing future profitability.

Mistake 5 – Not planning post-sale obligations
Many buyers think the process ends at the notary, but afterwards there are:
- Annual property taxes and community fees.
- Maintenance and insurance.
- Rental management (for investors).
- Annual IRNR declaration: all non-residents must file it, even if the property is not rented.
If rented, they pay tax on rental income (19% EU / 24% non-EU). If not rented, they pay tax on an imputed rental value.

Example: A non-resident with a €300,000 apartment may pay €300–600 per year in IRNR even without renting.

Relevance for Scandinavian buyers
One of the biggest fears of Scandinavian buyers is lack of trust in the legal and tax process. Documents are in Spanish and many worry about being misled. With me, you always work directly with me in English, not with a rotating team. I personally accompany you to the notary, explain every step clearly, and most importantly, I remain available post-sale to help with taxes, rentals and management.

Conclusion
Costa del Sol is still a safe and profitable market, but avoiding mistakes is crucial to maintaining returns.

If you want to invest in Costa del Sol without costly mistakes, I will guide you step by step with a boutique service that guarantees transparency, security and long-term profitability.

Introduction
Costa del Sol is one of the most attractive real estate markets in Europe. But buying a property is not enough – the key is how you manage it to maximize your return on investment (ROI). Here are the best strategies to ensure your property is profitable, with real examples, focused on transparency and trust.

Strategy 1 – Choose the right location
- Marbella: luxury and holiday rentals (5–6%).
- Málaga city: strong long-term demand (4.5–5%).
- Fuengirola / Benalmádena: international communities with stable rental demand (4–5%).

Example: An apartment in Málaga (€300,000) rented long-term generates a 4.7% yield. The same investment in Marbella with holiday rentals can reach 6%.

Strategy 2 – Optimize rental income
- Modern furnishing increases holiday rental occupancy.
- Extra services like Wi-Fi, parking or private pool can raise income by 10–15%.
- Professional management can increase occupancy by up to 20%.

Example: Apartment in Estepona
- Without management: €18,000/year.
- With professional management: €22,000/year.
- Difference: +€4,000 (over 1% extra annual return).

Family example (partial use): A second home rented only in July and August can cover 40–60% of annual community and maintenance costs.

Strategy 3 – Diversify property type
- Small apartments → quicker rentals and liquidity.
- Villas → higher holiday rental returns, especially for families.
- New builds → attract premium tenants and buyers.
- Resales → often cheaper and can appreciate after renovations.

Strategy 4 – Smart tax planning
- Consider Andalusian taxes: VAT (10%) on new builds, ITP (7%) on resales, AJD (1.2%) on new builds.
- IRNR (Non-Resident Income Tax): annual declaration required, even if the property is not rented.
- Proper planning prevents overpaying and protects profitability.

( A complete guide to the purchase process and all taxes in Costa del Sol will be published soon.)

Strategy 5 – Work with a trusted boutique advisor
Numbers matter, but what really makes the difference is security and personal guidance.
- You will always work directly with me, in English or Spanish.
- I accompany you from the search to the notary.
- And most importantly, I stay by your side post-sale to help with taxes, rentals and management.

Scandinavian buyers especially value transparency and the peace of mind of having one trusted contact throughout the process.

Conclusion
Maximizing your investment in Costa del Sol is not only about the property, but about strategy and trust. With the right guidance, you can achieve strong returns and long-term peace of mind.

If you want to maximize your ROI in Costa del Sol, I will guide you step by step with a boutique service focused on profitability and security.

Introduction
For decades, the Costa del Sol has been one of Europe’s most attractive property markets. In 2025, it continues to stand out not only for its lifestyle, but also for its profitability, stability and long-term value compared to other European destinations like Lisbon, Paris or Rome.

Whether you are an investor, a family looking for a second home, or a Scandinavian buyer seeking security, Costa del Sol offers a unique combination of lifestyle and investment opportunities.

Reason 1 – Lifestyle and international community
- More than 320 days of sunshine per year.
- A vibrant mix of cultures: strong expat communities from UK, Scandinavia, Germany, Middle East.
- Excellent international schools, private healthcare and family-friendly services.
- Safe environment for retirees, families and digital nomads.

Example: Compared to Lisbon or Athens, Costa del Sol has more international schools and a larger foreign community, making integration easier for families.

Reason 2 – Strong and resilient demand
- Buyers from Northern Europe, UK and Scandinavia represent a consistent base.
- Growing demand from the US and Middle East.
- High proportion of repeat buyers and word-of-mouth referrals.

Example: Even during the 2008 financial crisis and the 2020 pandemic, Costa del Sol recovered faster than many European markets. By 2023–2025, property values and rental demand remain strong.

Reason 3 – Rental profitability above European average
- Holiday rentals: 5–7% annual yield.
- Long-term rentals: 3.5–5% annual yield.
- Higher than Paris (2–3%) or Rome (3%).

Example: A €300,000 apartment in Málaga city can achieve 4.7% yield long-term, while in Marbella holiday rentals can reach 6%.

Reason 4 – World-class infrastructure and connectivity
- Málaga International Airport with direct flights to Europe, Middle East and North America.
- High-speed train (AVE) to Madrid in just 2.5 hours.
- Modern motorways, international schools, and private hospitals.

Example: Compared to Algarve or Greek islands, Costa del Sol offers year-round flights and better healthcare, ensuring stability for families and retirees.

Reason 5 – Stability and long-term security
- Transparent legal system with full rights for foreign buyers.
- Historically stable property values with steady appreciation.
- Safer than emerging markets thanks to consistent international demand.

Example: Scandinavian buyers especially value transparency: with me, you always deal directly with one trusted advisor, not a rotating team. I guide you from the search to the notary – and stay with you after the purchase to help with taxes, rentals and management.

Conclusion
Costa del Sol is not just a beautiful place to live – it’s one of Europe’s most secure and profitable property markets.
- For investors, it means reliable rental yields and long-term appreciation.
- For families, it means international lifestyle, schools and healthcare.
- For Scandinavian buyers, it means peace of mind with a trusted boutique advisor.

If you want to explore opportunities in Costa del Sol, I will guide you step by step with a boutique service focused on transparency, profitability and security.