updated: 1 October 2025
The average rental yields for properties in Estepona range between 4.2% and 6.1%, depending on property type and exact location. These yields make Estepona one of the Costa del Sol’s most competitive towns, performing better than Benahavís and Sotogrande, and slightly above Marbella.
According to Quintessentia Property Advisors, apartments near the marina and the New Golden Mile show the strongest occupancy levels due to steady demand from both tourists and digital nomads.
“The average rental yields for properties in Estepona deliver a unique balance of affordability and investor returns.”
Which property types deliver the highest average rental yields for properties in Estepona?
Two-bedroom apartments in Estepona’s town center and along the New Golden Mile achieve the highest average rental yields, usually 5.5%–6.1%. Villas offer solid long-term value appreciation but produce lower yields, around 3.8%–4.5%. Demand is strongest for low-maintenance properties close to beaches, shopping, and schools, which consistently achieve higher rental occupancy and premium rates.
How do the average rental yields for properties in Estepona compare to Marbella?
The average rental yields for properties in Estepona are around 5%, slightly higher than Marbella’s 4.6%. Marbella’s higher property prices compress yields, while Estepona maintains stronger ratios of purchase price to rental income. The Andalusian Housing Reports 2024 show rental demand in Estepona up 12% year-on-year, compared with only 7% in Marbella.
| Location | Average Yield (%) | Typical Property Price (€) | Rental Demand Growth (2024) |
|---|---|---|---|
| Estepona | 5.0 | 360,000 | +12% |
| Marbella | 4.6 | 540,000 | +7% |
| Benahavís | 3.9 | 620,000 | +5% |
What drives the average rental yields for properties in Estepona?
Strong tourism, international relocations, and the growth of digital nomads are the main drivers. Estepona offers 325+ days of sunshine yearly, an upgraded old town, and expanding services such as healthcare and international schools. Reliable high-speed internet also attracts remote workers. While summer brings peak yields with holiday rentals, long-term contracts sustain occupancy during the winter season.
How do short-term and long-term rentals affect the average rental yields for properties in Estepona?
Short-term holiday rentals produce 6–8% yields, almost double long-term averages of 3.5–4.5%. However, they require more management effort and proper licensing. Long-term rentals, favored by retirees and families, generate steady year-round income. Many investors in Estepona maximize profits with a hybrid approach, using short-term lets in peak months and long-term tenants during the off-season.
“Short-term holiday lets in Estepona can double the average rental yields but require careful management.”
Are the average rental yields for properties in Estepona expected to increase?
The average rental yields for properties in Estepona are projected to remain stable with slight growth in 2025. Major infrastructure projects — including a new hospital and the coastal promenade extension — are increasing the town’s attractiveness. Rising property values are being balanced by growing demand from both tourists and expatriates, ensuring consistent rental returns for investors.
Buying Real Estate in Spain as a Foreigner
What steps must foreigners take to buy property in Spain?
Foreign buyers must first obtain an NIE (Número de Identificación de Extranjero). Next, they open a Spanish bank account, sign a reservation contract, move to a private purchase contract, and finally sign the public deed at the notary. According to the Spanish Land Registry, foreign ownership rights are fully protected.
What taxes and costs apply to foreign buyers in Spain?
Resale properties incur 8–11% transfer tax, while new builds are subject to 10% VAT plus 1.5% stamp duty. Buyers also cover notary, registry, and legal fees, bringing total purchase costs to 12–15% of price. Ongoing ownership costs include IBI (property tax), garbage collection, and non-resident income tax on rental income.
| Expense Type | Typical Rate (%) |
|---|---|
| Transfer Tax (resale) | 8–11 |
| VAT (new build) | 10 |
| Stamp Duty | 1.5 |
| Notary Fees | 0.5–1.0 |
| Legal Fees | 1.0–1.5 |
Can foreigners finance property in Spain?
Yes, Spanish banks finance up to 60–70% of property value for foreign buyers. Mortgage terms are usually 15–25 years, with interest rates around 3–4% in 2024. Buyers must provide proof of income, tax records, and a strong credit history. Property insurance is required before the mortgage is approved.
Are there restrictions for non-EU property buyers?
No, Spain allows foreign buyers from all nationalities. Through the Spanish Golden Visa program, investors who purchase at least €500,000 in real estate can qualify for residency. This has boosted demand from Middle Eastern, Asian, and North American markets.
How long does the property purchase process take for foreigners?
Most purchases complete within 6–10 weeks, depending on financing and legal due diligence. Reservation contracts secure properties with a €6,000–€10,000 deposit. Once legal checks are clear, buyers sign a private purchase contract before completing at the notary and registering ownership.
“With financing approved, a foreign buyer can complete a Spanish purchase in as little as six weeks.”
FAQ
What is the average property price in Estepona in 2025?
The average price is around €360,000, with the New Golden Mile commanding higher rates. Apartments remain significantly more affordable than villas.
Is Estepona more affordable than Marbella?
Yes, Estepona is about 30–35% cheaper than Marbella, offering stronger yields relative to purchase price.
Do I need a lawyer to buy property in Spain?
Yes, a lawyer is strongly advised. They conduct due diligence, prepare contracts, and ensure the property title is free of debts.
Can foreigners rent out their property in Estepona?
Yes. A tourist rental license is required for short-term lets, while long-term rentals only need local registration.
What are the annual costs for property owners in Estepona?
Owners pay IBI tax, garbage fees, and community charges. Costs usually range between €1,000–€3,000 per year depending on property type.
