Author: Vanessa

The recent trade war between the US and China is putting pressure on global stock markets. With tariff increases of up to 125% by China and retaliations of over 145% by the US, we are already seeing the impact on stock markets. The S&P 500 lost more than 10% in just two days, while the Nasdaq Composite has entered a bear market, with losses of 20% since December.

Economic uncertainty and implications for investors

The economic turmoil comes in the middle of what looked like a promising spring for investors. The uncertainty about how long these trade tensions will persist and what further economic consequences we can expect is causing concern among investors. Many are now looking for more stable investment alternatives to protect their assets and/or their return on savings].

Disclaimer: It is important to be thoroughly informed when making financial decisions. This article provides general information and not specific investment advice. Always consult financial experts for personal advice.

Real estate as a safe haven during economic turmoil

Historically, real estate often proves to be a relatively stable investment category during periods of economic uncertainty and market volatility. This is particularly true for high-quality properties in sought-after regions such as the Costa del Sol.

Some concrete examples:

• After the 2008 financial crisis, when stock markets fell dramatically worldwide, luxury property markets on the Costa del Sol saw a much more limited decline in value and a faster recovery than the wider property market.
• During the recent COVID-19 pandemic, demand for luxury homes in Spain soared, with price increases of 16.87% in Estepona between 2023-2024.
• Unlike equities, which can lose billions in value in a matter of days, property valuations remain more stable due to the underlying value of the physical asset.

An important insight from the real estate world is that quality properties - such as spacious homes in good neighbourhoods - typically continue to sell well, even during economic uncertainty. In the long run, simply owning property is always more profitable than waiting for the perfect time to buy property.

Property on the Costa del Sol: a proven stable investment

The Costa del Sol stands out as a particularly robust property market to invest in[LINK blog post 1], even during economic fluctuations. This is due to a combination of factors:

• Consistent international demand:
  The region continues to attract foreign buyers, not only for the climate but for the complete Mediterranean lifestyle. With 325 days of sunshine a year and an international community, the attraction remains regardless of economic cycles.
• Limited supply in prime locations:
  Especially in popular areas such as Estepona and Marbella, available building land in A-locations is becoming increasingly scarce. This natural limitation of supply creates a floor under valuations.
• Proven resilience:
  The luxury property market on the Costa del Sol has shown in the past that it recovers faster from economic shocks than other markets. After the pandemic, the number of high-end transactions increased by double digits.

Diversification as a strategy: real estate to complement your investment portfolio

One of the fundamental principles of successful investing is diversification, or spreading investments across different asset classes. Especially during stock market volatility, this strategy proves its worth:

• Low correlation with equity markets:
  Real estate often does not move in the same direction as equities, offering stability within a diverse portfolio
• Inflation protection:
  Unlike many financial assets, the value of real estate often rises with inflation
• Double efficiency:
  Real estate offers both potential value growth and rental income, even if it is harder to get a rental licence

A concrete example: an Alness client who invested in a flat in Estepona in 2016 for €260,000 is now seeing a market value of €380,000 - a value growth of 46% over eight years. This represents an average annual return of around 4.9%, excluding any rental income.

Not every home is equal: focus on the luxury segment

It is important to stress that not all property segments perform equally during economic uncertainty. The luxury segment in particular remains resilient. When markets become uncertain, investors look for tangible assets.

Market data shows that these features in particular contribute to stability during uncertain times:

• (New-build) homes in established premium locations
• Detached villas and spacious flats
• Property with unique features such as sea views

Timing and patience: investing with a long-term view

A crucial difference between equities and real estate is the time aspect. While stock markets fluctuate by the hour, real estate develops over years or decades, making it fundamentally more stable. We see this clearly on the Costa del Sol, where luxury real estate realised a 40-60% increase in value between 2010-2023, despite financial crises and pandemics.

The risks

While property on the Costa del Sol can be an attractive investment during stock market turmoil, it is important to also recognise the potential risks:

• Liquidity constraint:
  Real estate is not as liquid as equities and can take longer to sell in a difficult market
• Potential short-term volatility:
  Property prices can also fluctuate in the short term, especially in the middle segment
• Higher transaction costs:
  The cost of buying and selling property is significantly higher than for equities

For investors considering diversifying into Spanish real estate, it is essential to take a long-term view and not invest with capital that might be needed in the short term.

Real estate as an anchor in your investment strategy courtesy of local expertise

A balanced investment strategy combines different asset classes, with high-quality property on the Costa del Sol can serve as a stable base during stock market volatility. The key to success lies not in choosing between equities or real estate, but in finding the right balance ánd the right properties.

When navigating the complex property market, local expertise makes the difference between a successful investment and a missed opportunity. Without thorough knowledge of the local market, it is difficult to determine true value, identify growth areas and manage legal complexities.

Alness helps you find real estate that not only provides resilience during economic fluctuations, but also continues to create value in the long term. And supports you through the entire process: from search to purchase. Take contact us for a personal interview About the possibilities.

Buying a house in Spain, specifically on the sunny Costa del Sol, is a dream of many. Whether it is a second residence for overwintering, a holiday house near golf courses or a permanent move to Estepona - the beautiful coastal region has something for everyone. But what are the real costs when buying a house in Spain? What additional costs are involved in buying a property? In this article, we list all the costs involved in buying a Spanish home so that you are perfectly prepared for your investment.

Purchase costs for a house in Spain

If you are buying a house in the Costa del Sol (located in Andalusia), you should consider the following costs on top of the purchase price. The costs below for your home purchase in Spain are essential to include in your budget.

For new-build homes:

• 10% VAT (IVA in Spanish)
• 1.2% Stamp duty (AJD - Impuesto de Actos Jurídicos Documentados)

For existing homes:

• 7% Transfer tax (ITP - Impuesto de Transmisiones Patrimoniales)

Additional costs for each purchase

In addition to the taxes mentioned above, there are other costs to consider:

• Notary fees: about 0.5% of the purchase price
• Registration in the land register: about 0.4% of the purchase price
• Lawyer fees: 1-1.5% of the purchase price (strongly recommended to ensure legal certainty)
• NIE numberr (tax identification number for foreigners): about €150 per person
• Power of attorney for attorney: approximately €150 if you cannot attend all steps in person

Total cost of buying a house in Spain in figures

As a rule of thumb, you can count on about 10-12% extra cost on top of the purchase price for an existing home and about 12-14% for a new home on the Costa del Sol. This total cost buying house in Spain is higher than in Belgium or the Netherlands, but on the other hand, the base price of property is often more attractive.

Concrete example: €500,000 home

* Percentages for the region of Andalucia.

Financing via mortgage

If you want to finance a property through a mortgage, keep the following points in mind:

• Spanish banks typically finance up to 60-70% of the purchase price for non-residents
• Valuation fee: €300-600
• Possible opening cost for mortgage: 0-2% of borrowed amount
• Additional notary and land registry fees for the mortgage deed

For a 60% mortgage on a €500,000 property (i.e. €300,000), there will be about €7,500-€10,000 in additional costs.

Annual cost after purchase

After purchasing your property on the Costa del Sol you should also take into account annual fees and/or taxes such as:

• IBI (property tax), about 0.4-1.1% of cadastral value
• A contribution for rubbish collection/processing
• Community charges
• An income tax for non-residents (limited to around 0.2% for non-rented properties)
• And insurance

If you want to rent out your property, also take into account the cost of rental licences.

Why choose a property on the Costa del Sol?

Despite this costenn have 5 good reasons to investing in real estate on the Costa del Sol:

1. Stable property appreciation (16.87% increase in Estepona between 2023-2024)
2. High rental yield (4-6% in luxury segment)
3. Excellent climate with 325 sunny days a year
4. Excellent infrastructure and facilities
5. Convenient lifestyle with opportunities for golfing and other outdoor activities

Conclusion: the real costs when buying a house in Spain

Good preparation is important in all financial decisions, including the purchase of a house in Spain. Those purchase costs are considerable, we won't be flippant about that, but with the right guidance, everything is 100% transparent and you won't encounter any unpleasant surprises. By the way, don't forget the emotional aspect of buying a dream home and how many great times you will have on the Costa del Sol.

Whether you opts for a new-build home or an existing property, in Estepona or elsewhere on the Costa del Sol, make sure you are well informed and let experts guide you With local knowledge of the Spanish property market such as Alness.

The choice between a brand new project or an existing home determines not only your immediate living pleasure, but also the return on investment. With years of experience on the Costa del Sol, I am happy to help you make this important decision. Because while both options have their charms, there are significant differences to consider.

Pros and cons of new construction and resale

New building: modern comfort and carefree enjoyment

The Costa del Sol is currently experiencing a surge in high-quality new-build projects, from luxury flats to detached villas. These new developments offer not only the latest in architecture and design, but also in comfort and sustainability.

Modern new-build homes are designed with the contemporary buyer in mind. Expect open living spaces with plenty of natural light, spacious terraces and state-of-the-art technology. The latest energy-saving measures also ensure lower monthly costs.

An additional advantage is the 10-year guarantee that developers in Spain have to offer on structural elements. This gives extra security with your investment.

Existing property: character and immediate availability

An existing property often offers what is hard to find with new construction: a prime location in an established neighbourhood. Whether you are looking in the bustling centre of Marbella or in the charming old town of Estepona, existing homes are often in the most desirable locations.

The big advantage is that you see exactly what you are buying. The neighbourhood is developed, the gardens are mature and you can immediately assess what it is like to live there. Moreover, with existing properties you can often negotiate the price more sharply, especially if some modernisation is needed.

Financial considerations and taxes

The cost side is an important aspect in your decision. Here is an overview of the main differences:

Although purchase costs are higher with new builds, you often save on renovation and maintenance costs in the first few years. With an existing home, you better factor in modernisation costs, although you can spread them out over time.

Location and timing: what suits your plans?

Your personal situation plays a big role in the choice. Do you want to be able to enjoy your Spanish home right away? Then existing property is the logical choice. The lead time from purchase to key transfer is usually 6-8 weeks.

With new builds, you have to expect construction times of 18-24 months. On the other hand, you can often pay in stages and have more influence on the finishes.

Guidance from Alness: from selection to key handover

Whether you choose new construction or existing property, a worry-free purchase starts with the right guidance.

At Alness, we help you:

• Weighing the pros and cons for your specific situation
• Choosing the right location to suit your needs
• In technical inspections and legal audits
• With the negotiation process and administrative handling

Want to know more about the possibilities in new construction or existing property on the Costa del Sol? Contact us for a personal interview in which we discuss your needs and options.

The Costa del Sol property market has shown impressive growth in recent years. With rising prices and stable demand, the region remains attractive to investors. But what do these figures mean in concrete terms? We share a real-life example and analyse the main trends.

A practical example from Estepona

A concrete example from Estepona illustrates the value development: a flat that sold for €260,000 in 2016 now has a market value of €380,000. This represents a value growth of 46% over 8 years, or an average annual return of about 4.9% - excluding any rental income.

Broader market developments Costa del Sol

Recent figures from the region show:

• Price rise of 16% in Estepona (2023-2024)
• Average asking price of €3,908 per square metre
• For premium properties, this is at €7,591 per square metre
• Rental yield between 4-6% for long-term rental

Historical trend in property prices in Spain (2019-2024)(table):

Source: thinkspain.com.

In other words, invest in the Costa del Sol is certainly a worthy alternative to savings.

Factors behind the increase in value

Several elements contributing to this positive development are:

• International appeal
  From Scandinavian families to British retirees - the Costa del Sol continues to attract people from all over the world. They come not just for the sun, but for the complete Mediterranean lifestyle. With more than 320 days of sunshine a year and a vibrant international community, everyone quickly feels at home here.
• Top locations becoming rare
  Especially in popular areas like Estepona and Marbella, available building land in prime locations is becoming increasingly rare. This creates a natural increase in value for existing properties, especially those with sea views or close to amenities.

Furthermore, the region also enjoys infrastructure improvements, a thriving tourism sector and a stable Spanish economy. Not to mention, the punishing golf courses and a wonderful climate for overwintering.

Outlook for the future

While historical results are no guarantee for the future, market fundamentals remain strong:

• Constant demand from northern Europe
• Development of new luxury projects
• Expansion of facilities and infrastructure

Note for investors: Real estate investments always involve risks. Historical price trends are no guarantee of future results. We recommend always seeking professional advice and doing your own thorough research before making an investment decision.

Personalised coaching by Alness

Making a real estate investment involves a lot. As a local expert, Alness helps you with:

• Finding the right location and estimating market value
• Due diligence and legal aspects
• The entire purchasing process from A to Z

Want to know more about investment opportunities on the Costa del Sol? Contact us for a personal interview.

"My savings no longer yield anything" - a sigh we hear more and more often. With historically low savings rates and rising inflation, more and more Belgians are looking for alternatives for their assets. Property in Spain often comes to mind as interesting option. But what are the real returns and risks? We list the figures, but get plenty of advice when making financial decisions.

The reality of saving in 2025

The traditional savings book is under pressure:

• Savings rates between 1% and 3%*
• Inflation of around 4%*
• Real negative return after inflation
  However, full flexibility and state guarantee up to €100,000

* Figures accessed 20/01/2025

Real estate as an investment alternative: the numbers

The Spanish property market shows interesting figures:

• Value development:
  • Average annual increase in value: 5%
  • Top locations such as Estepona: to 16.87% in 2024
  • Stable growth in luxury segment, especially at the Costa del Sol
• Rental income:
  • Realistic rental period: 10-12 weeks per year
  • Net rental yield: 1.5-2.5% annually
  • Commission rental offices: 15-25%

Note: since 2025, there have been new rules for rental licences. Inform yourself well about the requirements before making an investment.

Costs to consider

A real estate investment involves several costs:

• One-off cost:
  • New construction: 10% VAT + 0.5-2.5% stamp duty
  • Existing house: 6-11% transfer tax
  • Notary and administration fees
• Recurring costs:
  • Annual property tax (IBI): 0.3-1.5%
  • Wealth tax as of €700,000 net assets
  • Maintenance costs and insurance

Case study: investment of €300,000

Let's scrutinise a €300,000 investment.

Savings account:

• Annual interest (2%): €6,000
• Loss due to inflation (4%): -€12.000
• Net result: -€6.000
• Advantage: immediately available

Property Costa del Sol:

• Average increase in value (5%): €15,000
• Rental income (2% net): €6,000
• Minus annual cost (1%): -€3.000
• Net result: €18,000
• Disadvantage: not readily available

Disclaimer: this is a fictitious numerical example based on static figures. Inform yourself thoroughly and/or get advice from a financial expert when making financial decisions.

More than just returns

A property investment in Spain offers many more advantages than just the financial picture. After all, you also invest in a high-quality lifestyle that appeals to an increasing number of Belgians. With your own holiday home on the Costa del Sol, you create a personal spot in the sun that you can enjoy all year round. Especially for those considering winter this offers unprecedented opportunities to escape the Belgian winter cold.

The region is also known for its excellent golfing opportunities, which is an important consideration for many owners. Add to this the fact that the overall lifespan in Spain is some 20% lower than in Belgium, and you can see why more and more people are opting for this combination of investment and quality of life.

Personalised advice by Alness

Are you ready to make the switch from saving to smart investing in Spanish property? At Alness, we understand that this is an important decision. That's why we offer you a no-obligation personal consultation in which we will discuss, among other things:

• Mapping out your financial goals
• Discuss options in different regions
• Going through the various financing options

Get in touch for a personal discussion about the possibilities in both the Costa del Sol and Costa Blanca.

Are you planning to invest in Spanish property but are you still hesitating between Costa del Sol and Costa Blanca? Both coastal regions offer excellent opportunities for property investors, with their own unique characteristics and advantages. We compare the most important aspects so you can make an informed choice that suits your needs and investment goals.

Property market and investment potential

Both regions show strong growth in their property markets, but there are clear differences in price levels and returns.

Costa del Sol

• Average price increase of 14% in 2024
• Asking price per m² in Málaga: €2,849 with rising trend
• Luxury segment shows consistent value growth, especially in Marbella and Estepona
• High rental potential due to year-round tourism
• New regulations for rental licences since 2025

Costa Blanca

• Price hike of 11% in 2024
• Asking price per m² in Alicante: €1,908
• Stable growth in middle class segment, especially in urban areas
• Strong seasonal rental market

Comparing the two costas, one can see that The Costa del Sol, and especially the area around Estepona, stands out as a robust luxury market with strong international appeal. The higher initial investment here is offset by excellent yields and value retention.

Lifestyle and amenities

Life on the Spanish coast is about more than real estate. Both regions offer high-end lifestyles, but with different emphases:

Costa del Sol

• 325 Sundays a year
• Ideal for winter with winter temperatures around 18°C
• More than 70 world-class golf courses
• Extensive range of Michelin-starred restaurants
• International private clinics and hospitals

Costa Blanca

• 320 Sundays a year
• Slightly cooler winters averaging 16°C
• Several golf courses and water sports facilities
• Mix of local and international restaurants
• Good basic medical facilities

Accessibility and infrastructure

Accessibility plays a crucial role, especially for those who regularly travel between Spain and Belgium. The Costa del Sol with Malaga International Airport, offers an extensive network of flights to various European destinations, complemented by a direct train connection to Madrid and a modern network of motorways along the coast. Local public transport there is excellent.

The Costa Blanca is also well connected through Alicante airport, which has particularly strong European connections. The region benefits from a fast connection to Valencia and has a good coastal road connecting the main cities. The local bus network there is reliable and serves the entire coast.

Popular locations highlighted

Costa del Sol

Estepona is rapidly developing into one of the most sought-after locations on the Costa del Sol. The combination of authentic charm and modern developments makes it particularly attractive to investors. Marbella and Benahavís also remain popular choices for higher-end properties.

Costa Blanca

The region offers a mix of lively coastal cities such as Alicante and Benidorm, and quieter seaside resorts such as Altea and Jávea. The northern part in particular attracts buyers looking for a more traditional Spanish atmosphere.

Tips for your choice

To make an informed decision, we recommend:

• Have your investment budget and return expectations clear
• Thinking about own use versus rental
• Compare and visit local facilities

Or you appeal to Alness, as we are familiar with both regions. We will be happy to help you make the right choice to suit your needs and investment goals. Get in touch for a personal discussion about the possibilities in both the Costa del Sol and Costa Blanca.

The Spanish property market remains an attractive investment destination, with rising house prices and a booming tourism sector. Although new regulations for rental licences are approaching, this also presents opportunities for serious investors who opt for a professional approach. Read here why investing in Spanish property still worthwhile.

Key changes 2025

From January 2025, the Spanish government will introduce new rules for rental licences:

• Mandatory registration: Each rental property will have a unique identification number, similar to a license plate registration
  Digital counter: A new central platform for registration and control of rental properties
• Period of validity: Licences are valid for 12 months and must be renewed thereafter
• Stricter enforcement: Rental platforms must check registration number before properties can be advertised

The new regulations are part of a broader policy to regulate the housing market and ensure quality.

Regional differences and local rules

Each region in Spain has its own additional rules for holiday rentals. On the Costa del Sol, for example, there are specific requirements for maximum occupancy and minimum facilities. As regulations vary from region to region and are regularly updated, it is local expertise indispensable.

Conditions for rental licence

For a successful rental licence, your property must meet several requirements:

• Technical requirements:
  • Heating and cooling systems
  • Adequate ventilation
  • Energy certificate
  • Fully equipped kitchen
• Safety regulations:
  • Fire safety measures
  • Emergency exits
  • First aid facilities
  • Evacuation plan
• Administrative requirements:
  • Owners' Association (VvE) approval if applicable
  • Declaration of conformity municipality
  • Registration with local authorities

Disclaimer: This list is not exhaustive and is for indicative purposes only. Regulations vary by region and are regularly updated. Be well informed.

Common reasons for rejection

It is important to be prepared for potential bottlenecks:

• Incomplete documentation or incorrect registration
• Failure to meet technical or safety requirements
• Missing VvE consent
• Local restrictions on tourist rentals

Tips for a successful rental licence application

So you better make sure you are well prepared, because that is more than half the battle here. Start on time. Start preparations at least 3-4 months before the intended rental date. When doing so, document carefully so that you have all the necessary certificates and permits readily to hand.

But more importantly, enlist local expertise, such as a partner like Alness who knows the Costa del Sol and Costa Blanca inside out.

Investing in Spanish property: unburdening by Alness

As a specialist in Spanish property Alness guides you through the whole process:

• Advice on suitable locations with rental potential
• Complete guidance on licence application
• Up-to-date knowledge of local regulations
• Network of reliable partners

Are you considering investing in Spanish property? Contact Alness for personal advice on options and get unburdened in obtaining your rental licence.

With its authentic Andalusian charm and recent investments, Estepona is positioning itself as the emerging destination on the Costa del Sol. A city of contrasts, where traditional white houses blend harmoniously with contemporary architecture, is rapidly transforming into a luxurious yet accessible coastal town that is attracting more and more international buyers. Property in Estepona is in demand.

A city in full bloom

Estepona distinguishes itself from other coastal cities by its thoughtful balance between development and authenticity. The town is known as the 'Garden of the Costa del Sol', with more than 70 top-class golf courses, 21 kilometres of beaches and 325 days of sunshine a year - ideal for overwintering.

Moreover, in recent years, the city government invested heavily in the beautification of the city centre, resulting in a pedestrian-friendly historic heart full of flowering flower boxes and atmospheric squares.

Estepona in figures

• Over 67,000 inhabitants (2024)
• 21 kilometres of coastline
• 325 days of sunshine a year
• Average temperature: 19.2°C (summer 25°C, winter 14.3°C)
• 137 square kilometres of surface area
• Only 45 km from Gibraltar Airport and 80 km from Málaga Airport

Strategic location and accessibility

The city benefits from an excellent location between Marbella and Gibraltar. Málaga airport is eighty kilometres away, while Gibraltar International Airport is just 45 kilometres. This strategic position, combined with excellent road connections via the A-7 and AP-7, makes Estepona perfectly accessible to both permanent residents and seasonal visitors.

Impressive property figures

The property market in Estepona shows consistent growth that inspires confidence among investors, part of Spain's 'Golden Triangle' with Marbella and Benahavís for good reason.

Recent figures show a price rise of 16.87% between November 2023 and October 2024, with an average asking price of €3,908 per square metre. Prices are even higher in the luxury segment, with an average of €7,591 per square metre for premium properties.

Strong value growth and returns

Real estate in Estepona shows not only growth, but also stability. Specifically for the luxury segment, we see average:

• An asking price of €2,758,013 for luxury homes
• A living area of 436 square metres
• A rental yield of 4-6%

Modern developments while retaining character

Estepona is distinguished by a mix of traditional and modern neighbourhoods. East of the centre rises the 'New Golden Mile', a prestigious area that sets new standards for luxury coastal locations. At the same time, the historic centre retains its authentic character, with renovated streets and squares that perfectly preserve the Andalusian atmosphere.

A full range of facilities

The city offers all the modern conveniences that international buyers expect:

• A modern marina with restaurants and shops
• Prestigious golf courses and sports facilities
• The spectacular Orchid House as a cultural highlight
• Excellent restaurants and shops
• High-quality healthcare and international schools

Buying property in Estepona?

With its strategic development, stable price growth and continued appeal to international buyers, Estepona offers excellent prospects for real estate investors. Whether you are looking for a second home or an investment property, the combination of lifestyle, amenities and value retention makes Estepona a very interesting option.

In the spotlight: Altezza real estate project in Estepona

The emerging La Resina area is developing Altezza Suites, an exclusive project of 72 flats. With two to four bedrooms, extensive amenities and spectacular sea views, the project offers an ideal combination of luxury living and investment potential. The carefully chosen location, 14 kilometres from Puerto Banús, offers tranquillity and accessibility.

Interested in this project or curious about other opportunities in Estepona? Contact Alness for personal advice on the best locations and available properties to suit your needs and investment goals.