Foreign buyers pay 35% more for homes in Spain: what it means on the Costa del Sol

Foreign buyers in Spain pay on average 35% more per square metre than Spanish buyers: €2,479 versus €1,839 in 2025, according to a report by Unión de Créditos Inmobiliarios (UCI). Their profile is also changing: more of them are buying to live here all year round, and fewer are buying a holiday home. On the Costa del Sol, where more than one in three sales is already signed by a buyer from abroad, that shift is especially visible.

How much does a foreign buyer pay for a home in Spain?

The price gap is not a surcharge for being foreign: it comes down to what is bought and where. International buyers concentrate on the coast and the islands, look for homes with more outdoor space, views or amenities, and arrive with bigger budgets. The result is an average purchase of €204,365 in 2025, 40% more than in 2019.

Why are foreigners who already live in Spain gaining ground?

The most telling figure in the report is the split between residents and non-residents. In 2025, foreigners who already live in Spain accounted for 11.6% of home purchases, compared with 7.2% for non-resident buyers. Today, the foreigner who has settled here buys more than the one looking for a holiday flat.

UCI points to several drivers: quality of life, good connections, remote working and the search for less overheated places to live. It matches what the notarial data for the second quarter of 2026 showed, as we analysed on this blog: the growth in purchases by foreigners is driven mainly by primary homes, not second homes.

For the market, this shift matters. People who come to live here look for schools, services, transport and a home that works twelve months a year, not just a flat near the beach. Their demand is steadier, less seasonal and less tied to tourism trends, which is why the report concludes that international demand is now a structural part of the Spanish housing market.

Where do foreign buyers come from?

Among non-residents, the United Kingdom, Germany and Morocco are still at the top, but the list has widened to include the Netherlands, the United States, Belgium, Sweden and Poland. Each nationality buys differently: the type of home, the budget, the use of a mortgage and the chosen area all vary.

Swedish, American, German and Swiss buyers are among those who pay the highest prices per square metre. On the Costa del Sol this profile is easy to recognise: it is a regular client in Marbella, Benahavís and Estepona, where most of the high-end villas and apartments are found.

What does it mean for buyers on the Costa del Sol?

Andalusia is, together with the Valencia region, the Balearic Islands and the Canary Islands, one of the regions where international deals are concentrated, and the province of Malaga is one of its main hubs. That is why the national average paid by foreign buyers falls short as a benchmark on the Málaga coast. These are the median sale prices from our market report for September 2026:

The Costa del Sol median of €4,667 per square metre is almost double the €2,479 that foreign buyers pay on average across Spain. These are asking prices rather than completion prices, but the gap makes one thing clear: on the Málaga coast, international demand competes for a more expensive and scarcer product. Manilva and Casares remain the most affordable entry points on the western coast.

What should a foreigner prepare before buying a home in Spain?

Whether you are moving here or looking for a second home, it pays to have several points settled before you sign:

• The NIE: you need it to buy, sign before a notary and pay the taxes.
• Financing: residency changes the terms. A non-resident gets on average around 62% of the property value, while a resident can usually borrow a higher percentage.
• Purchase taxes: in Andalusia, resale homes currently pay 7% transfer tax (ITP), which is set to fall to 6.75% in 2027; new builds pay VAT instead.
• The area: the provincial average hides very different markets, and a flat in central Málaga does not behave like a villa in Benahavís.

In short: a buyer who is here to stay

The international buyer is no longer just someone buying a flat for the summer. More and more, it is someone who settles in Spain, buys a primary home and does so with a bigger budget than local buyers. On the Costa del Sol, this steady, well-funded demand supports prices in the most sought-after areas. If you are thinking of buying, we can help you compare municipalities, prices and costs with real data before you take the step.

This article is for information only and does not constitute investment advice.

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