Did you know? Benalmádena has micro-markets. From Arroyo de la Miel to Benalmádena Pueblo to the beachfront, each area has different pricing and demand. Financing approvals may also consider location-based property valuation, not just listed prices.
There are two kinds of buyers in Spain right now: those who already own property, and those who are watching the market shift beneath their feet. Benalmádena, long a favourite for international investors, now sits at a crossroads. The demand is still there. The interest is growing. But the financial landscape has changed.
In January 2025, Spain announced potential sweeping tax reforms that could significantly impact non-European Union (EU) buyers. A proposed 100% tax on non-EU property acquisitions is under discussion, aimed at slowing foreign-driven price increases and making housing more accessible to locals. If passed, it would double the cost of investment for non-EU buyers. It hasn’t happened yet, but it’s a conversation worth paying attention to.
The question is no longer just where to buy, but how to buy.
Understanding the Financing Landscape
If you’re an international buyer, financing is the first hurdle. Spanish banks do offer mortgages to non-residents, but the terms vary. Typically, you can expect:
- Loan-to-value (LTV) ratios of 60-70% for non-residents (lower than what locals can secure).
- Interest rates that fluctuate based on European Central Bank benchmarks.
- Strict affordability checks, requiring proof of income, tax declarations, and a low debt-to-income ratio.
And then there’s the regulatory uncertainty. If the proposed tax reforms go ahead, traditional financing could become a less attractive option. This is where alternative strategies come in.
Alternative Ways to Fund Your Property Purchase
Smart investors don’t always rely on local mortgages. Here’s how international buyers—especially non-EU investors—are securing their dream homes in Benalmádena.
1. Home Equity Loans or Re-Mortgaging
Rather than financing in Spain, many buyers leverage existing assets in their home country. Releasing equity from an owned property abroad allows buyers to purchase in cash, sidestepping the complexity of Spanish loan approvals.
2. Private Lenders and International Brokers
Traditional banks aren’t the only option. High-net-worth buyers are increasingly working with private lenders and boutique finance firms. These offer tailored solutions, often with higher interest rates but greater flexibility.
3. Developer Financing
If you're buying in a new development, some builders offer direct financing to buyers. This can be a short-term solution while securing longer-term funding elsewhere.
4. EU Residency Strategies
The proposed tax reforms target non-EU buyers specifically. For those serious about investment, securing EU residency—for instance, through Portugal or Greece—could create significant tax advantages when buying in Spain.
Using a mortgage broker familiar with both international clients and Spanish lenders can cut down on delays, miscommunication, and unnecessary paperwork. They often speak English and know which banks are foreigner-friendly.
Why Benalmádena?
Regulations change. The market shifts. But Benalmádena continues to hold value for investors. It’s an area that offers variety, accessibility, and lifestyle advantages that keep demand strong.
Types of Properties Available
- Modern Apartments – Two- and three-bedroom units with sea views, ideal for holiday lets or part-time residency.
- Seafront Villas – Private homes with pools and Mediterranean-facing terraces, for those who want exclusivity.
- Penthouses – Spacious, high-end properties with rooftop terraces and panoramic views.
Living Here: What You Get Beyond the Property
- Year-Round Golf – Courses like Torrequebrada Golf Club attract residents who enjoy the sport year-round.
- Beaches & Marina Life – Some of the best beach clubs, sailing options, and seafood restaurants in Costa del Sol.
- Access to Málaga – A 20-minute drive to Málaga Airport and high-speed train connections to Madrid and beyond.
The Next Step
Navigating Spain’s evolving property market requires more than just a great estate agent—it requires strategic financial thinking.
At Ultimate-Lifestyles.com, we connect buyers with the right property and the right financing solutions. Whether you’re looking for a second home, an investment property, or a permanent move to Spain, we help you make informed decisions in a shifting market.
📩 Email: [email protected]
📞 Phone: +34 951 12 07 12Click here to explore our latest listings in Benalmádena.