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Spanish Tax Residency for Costa del Sol Property Owners If you live on the Costa del Sol or own property in Spain, understanding your tax residency status is essential. Spanish tax rules depend on whether you are classified as a tax resident or non-resident, which determines what income you must declare and how much tax you pay. Tax residents are taxed on their worldwide income, while non-residents are taxed only on Spanish income and assets, including property-related taxes such as Non-Resident Income Tax, IBI, and Capital Gains Tax. Even non-rented properties are subject to imputed income tax. Because Spanish tax regulations can be complex, especially for international property owners, professional tax advice is highly recommended. Correct guidance helps you remain compliant, avoid penalties, and manage your tax obligations efficiently while enjoying life on the Costa del Sol.

Buying a property on the Costa del Sol is an exciting investment, but it also involves complex legal and financial steps. A qualified property lawyer in Spain ensures your purchase is safe, compliant, and stress-free. From checking the property’s legal status and outstanding debts to reviewing contracts and managing payments, a lawyer protects your interests at every stage. They coordinate with the notary, oversee the signing of the Escritura, and ensure the property is correctly registered in your name. While legal fees typically cost around 1% + IVA of the purchase price, this small investment provides peace of mind and helps you avoid costly mistakes. When buying property on the Costa del Sol, a trusted property lawyer is essential for a secure and successful purchase.

Choosing the right school is one of the most important decisions for families living in or relocating to the Costa del Sol, Andalucía. The region offers a wide range of public and private schools, each suited to different needs, budgets, and lifestyles. Public schools in Andalucía are government-funded, free for residents, and follow the Spanish national curriculum, often with bilingual English programs. They offer strong cultural immersion and a close connection to the local community. Private and international schools on the Costa del Sol, on the other hand, provide smaller class sizes, modern facilities, and internationally recognised curricula such as British, American, or IB programs, making them popular with expat families. Whether you choose a Spanish public school or a private international school, the Costa del Sol provides excellent educational options. The best choice depends on your child’s language needs, curriculum preferences, and your family’s long-term plans in Spain.

The Spanish mortgage market in 2025 offers very competitive rates for both residents and foreign investors. But what factors can influence mortgage rates? The following can determine the mortgage rates and conditions that Spanish banks might offer you: • Your existing relationship with the bank (if you have one) – An established positive relationship with a particular lender may result in favourable rates. • Loan-to-value ratio (LTV) – The percentage of a property’s value that a Spanish bank is willing to lend you when you take out a mortgage. A lower LTV could mean lower interest rates. • Debt-to-income ratios (DTI) – This metric compares your total monthly debt repayments to your monthly gross income to determine whether you can afford to pay an additional debt. • Employment stability, your salary and income sources – A stable job or source of income signals to banks that you can be trusted to make your monthly repayments. • Credit history – Spanish lenders may be reluctant to approve mortgage loan applications if you have bad credit, particularly in the last 7 years. • Your age – You can apply for a Spanish mortgage from 18 years of age and are expected to have paid the full loan back before you’re 75, which can impact how long your loan term is.

Retiring on the Costa del Sol offers year-round sunshine, trusted healthcare, international living, and smart retirement property choices.