Foreign Rental Demand in Málaga Hits 24%, Nerja 50%: What It Means for Investors

Foreign rental demand in Malaga now accounts for 24% of all searches for rental housing in the province, according to the idealista/data report for the first quarter of 2026. Only Alicante and the Balearic Islands, both at 26%, rank higher. In towns such as Nerja the international tenant is already the majority: half of everyone looking for a flat there comes from outside Spain. For anyone planning to buy to let on the Costa del Sol, this figure changes how you pick the area, the property type and the management strategy.

Which Spanish provinces attract the most foreign rental demand?

The map is the classic sun-and-beach one. The Mediterranean coast and the two archipelagos take the top spots, while the big inland capitals trail far behind: in Madrid only 9% of rental searches come from abroad, and in Seville just 8%. The surprise comes from landlocked provinces such as Jaén and Badajoz, at 11%, driven by Portuguese demand.

In which towns of Málaga and Andalusia are foreign tenants the majority?

The report identifies around twenty towns where more than 30% of rental demand comes from abroad. Nerja, in the Axarquía, reaches 50% and sits on a par with Calpe, Moraira or Mogán. On the Granada coast, half an hour from Nerja, Almuñécar posts 45% and Salobreña 43%. The capital, Málaga city, stands at 20%, the same share as Palma and above Barcelona (18%) or Madrid (11%).

• Nerja (Málaga): 50% international demand
• Almuñécar (Granada): 45%
• Salobreña (Granada): 43%
• Mojácar (Almería): 38% and Vera (Almería): 37%
• Málaga city: 20%

It is striking that the western Costa del Sol does not appear in the list of towns above 30%. That does not mean that in Marbella, Estepona or Fuengirola there are no foreign tenants; it means domestic demand there is also very strong and dilutes the share. On top of that, much of the international rental activity in that area runs through seasonal or holiday lets, which this report does not measure.

Which nationalities rent in Málaga and on the Costa del Sol?

In Málaga province the most common foreign tenants are Germans, Americans, Argentinians, Italians and French. It is a more diverse profile than Alicante, dominated by the United States, Germany and Brazil, or the Balearics, with a strong German presence. The growing weight of the United States and Latin America is new compared with the classic northern European tenant, and it explains the rise of urban areas such as Málaga city, where remote work and the tech ecosystem attract high-income profiles.

What does this mean for buy-to-let investors on the Costa del Sol?

A foreign tenant usually looks for a long-term contract, values a furnished home that is ready to move into, pays for proximity to the sea and to transport, and often earns more than the local average. That translates into higher rents and lower turnover, as long as the property matches what they want. Cross-referencing the report's demand with the purchase prices in our monthly Costa del Sol market report yields several takeaways:

• Nerja combines the highest foreign demand in the province with a price per square metre 21% below the Costa del Sol average. It offers the best balance between international tenants and entry cost.
• The Axarquía as a whole (Torrox, Vélez-Málaga, Rincón de la Victoria) benefits from the Nerja effect with more contained purchase prices.
• Málaga city offers a more urban, high-income foreign tenant with stable demand all year round.
• In Marbella or Estepona investors should think in terms of seasonal or holiday lets rather than the long-term residential rental this report measures.

Three practical points before letting to foreign tenants

1. Tailored solvency checks: many international tenants have no credit history in Spain. Ask for the employment contract, payslips or bank statements from their home country and consider rent-default insurance.
2. A clear bilingual contract: Spain's Urban Leases Act applies in full, but a contract explained in the tenant's language avoids disputes and reduces turnover.
3. Furnished and connected homes: fibre internet, a full set of appliances and quality furniture are decisive for tenants arriving from Germany, the United States or Argentina.

Conclusion

Foreign rental demand is no longer a niche phenomenon in Málaga: it is one in four searches across the province and half of them in Nerja. For investors, the Axarquía and Málaga city stand out as the areas where that international tenant and a reasonable purchase price meet. At EVS PROPERTY GROUP we help you select the right property to let and manage the tenancy with tenants of any nationality. If you are considering buying to let on the Costa del Sol, let's talk.

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