If you're a UK buyer considering a Spanish holiday home or permanent move, two regions dominate the conversation: Costa del Sol and Costa Blanca. Both offer Mediterranean sunshine, established expat communities, and good rental potential — but they differ in character, price, and infrastructure. This guide compares the two regions to help you make an informed decision.
Quick Overview
Costa del Sol (Málaga Province, Andalusia)
- Location: Southern Spain, stretching from Gibraltar to Nerja
- Key towns: Marbella, Estepona, Fuengirola, Nerja, Torremolinos
- Airport: Málaga-Costa del Sol (AGP)
- Property range: €150,000 (studio apartments) to €10m+ (Marbella villas)
- UK flights: approximately 2h 20m – 2h 45m from London airports; 2h 45m – 3h 15m from northern UK airports
Costa Blanca (Alicante Province, Valencia Region)
- Location: Southeast Spain, centred on Alicante
- Key towns: Alicante, Benidorm, Torrevieja, Jávea, Altea, Calpe
- Airport: Alicante-Elche (ALC)
- Property range: €80,000 (apartments) to €3m+ (luxury villas)
- UK flights: approximately 2h 25m – 2h 45m from London airports; slightly longer from regional airports
Property Prices: Costa del Sol vs Costa Blanca
Costa del Sol Average Prices (2025–2026)
Property prices below are approximate market ranges based on private portal data (Idealista, Fotocasa). Always verify current prices against actual transactions and official notarial data (notariado.org).
- Marbella and the Golden Mile: €4,000–€12,000/m²
- Estepona: €2,500–€5,000/m²
- Fuengirola/Torremolinos: €2,000–€4,000/m²
- Nerja: €2,500–€5,000/m²
- New Golden Mile / Benahavís: €4,000–€10,000/m²
Costa Blanca Average Prices (2025–2026)
- Jávea/Altea (north): €2,500–€5,000/m²
- Alicante city: €1,500–€2,500/m²
- Benidorm: €1,500–€2,500/m²
- Torrevieja/Orihuela Costa (south): €1,000–€2,500/m²
- Calpe: €2,000–€4,000/m²
Rental Yield and Investment Potential
Rental yield data is sourced from private property portals (Idealista, Fotocasa, Kyero) and varies significantly by property type, location, management quality and season. Official Spanish government sources do not publish rental yield statistics. Treat these figures as indicative only.
Costa del Sol
- Gross rental yields: typically 4–7% in well-located areas
- Marbella and Estepona command premium short-term rental rates due to luxury tourism
- Strong year-round rental demand with a longer shoulder season than Costa Blanca
- Andalusia requires a tourist licence (VFT — Vivienda con Fines Turísticos) for short-term rentals — register with the Junta de Andalucía regional government
Costa Blanca
- Gross rental yields: typically 4–6% in well-located areas
- The north (Jávea, Altea) attracts higher-quality renters with longer stays
- The south (Torrevieja, Orihuela) generates higher occupancy but lower nightly rates
- The Valencia Region requires a tourist registration certificate from Turisme Comunitat Valenciana for short-term rentals
Climate
Costa del Sol
Data sourced from AEMET (Agencia Estatal de Meteorología) — aemet.es:
- Annual sunshine: approximately 300–325 days per year (Málaga city averages approximately 2,900 sunshine hours — AEMET data)
- Average annual temperature: approximately 18.5°C
- Sea temperature: approximately 15–16°C (winter) to 24–26°C (summer)
- Rainfall: relatively low, though can receive heavy rain in autumn
Costa Blanca
- Annual sunshine: approximately 315–320 days per year (Alicante averages approximately 2,900–3,100 sunshine hours — AEMET data)
- Average annual temperature: approximately 18.5–19°C
- Torrevieja and Alicante consistently rank among Spain's sunniest cities per AEMET records
Lifestyle and Community
Costa del Sol
The Costa del Sol has a very substantial British community. According to INE (Instituto Nacional de Estadística) Padrón Municipal data, approximately 80,000–100,000 UK nationals are formally registered in the Málaga province — with a larger number of part-year residents and second-home owners not captured in the register. The total British presence (including part-year) is significantly larger, but often-cited figures of 300,000+ are not supported by official INE/Padrón data.
- Excellent English-language services, schools, and healthcare
- Cosmopolitan atmosphere with significant German, Scandinavian, and international communities
- Golf capital of Europe — approximately 60–75 golf courses in the Costa del Sol corridor, depending on scope — verify at visitacostadelsol.com
Costa Blanca
Torrevieja has one of the highest proportions of foreign residents of any Spanish municipality — INE Padrón Municipal data consistently shows approximately 40–50% of the registered population are non-Spanish nationals (including EU and non-EU).
- Strong Belgian, Dutch, German, and British communities
- Good English-language infrastructure
- More relaxed pace than Costa del Sol
Tax Rates by Region
Costa del Sol (Andalusia)
Source: Agencia Tributaria de Andalucía (juntadeandalucia.es/haciendayadministracionpublica)
- Property Transfer Tax (ITP) on resale: 7% standard rate for most buyers. Reduced rate of 3.5% applies for buyers under 35, large families, or certain disability-related purchases — verify current thresholds.
- Stamp Duty (AJD) on new builds: 1.2%
- NEW BUILDS: IVA (VAT) at 10% (instead of ITP) plus 1.2% AJD
- Capital Gains Tax: progressive national scale 19–28% for non-residents (see Spanish mortgage rates guide)
- IBI (annual property tax): typically 0.4–0.7% of catastral value
Costa Blanca (Valencia Region)
Source: Conselleria d'Hisenda, Generalitat Valenciana (hisenda.gva.es)
- Property Transfer Tax (ITP) on resale: TIERED — 10% on the first €1,000,000 of purchase price; 11% on €1,000,001–€2,000,000; 12% above €2,000,000
- Stamp Duty (AJD) on new builds: 1.5% (general rate; 0.1% reduced rate for certain primary residence purchases)
- NEW BUILDS: IVA (VAT) at 10% plus 1.5% AJD
- Capital Gains Tax: progressive national scale 19–28% for non-residents
- IBI (annual property tax): typically 0.4–1.0% of catastral value
Infrastructure and Connectivity
Costa del Sol
- Málaga airport (AGP) is one of Spain's busiest airports — direct flights from approximately 30–40 UK airports (verify current routes at aena.es)
- High-speed rail (AVE) connects Málaga to Madrid in approximately 2 hours 20 minutes (Renfe Larga Distancia — verify current timetables at renfe.com)
- Note: There is no direct high-speed rail service between Málaga and Seville. The journey requires a change (at Antequera-Santa Ana or via Córdoba) and takes approximately 2 hours. Verify current timetables at renfe.com.
- Excellent coastal motorway (A-7/AP-7)
Costa Blanca
- Alicante airport (ALC) serves approximately 40+ UK airports with direct flights — verify at aena.es
- TRAM light rail connects Alicante to Benidorm and Dénia
- Good road links via AP-7 motorway
Which Should You Choose?
Choose Costa del Sol if: you want a wider choice across all price points including luxury; you value year-round rental income; you're a golfer or want a cosmopolitan lifestyle; you want maximum connectivity and infrastructure.
Choose Costa Blanca if: you want more affordable entry prices; you prefer a more relaxed Spanish pace; you're looking for strong budget and mid-range rental potential in the south; or quality lifestyle in the quieter north.
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