French buyers' guide to buying property on the Costa del Sol — 2026

This guide is written for French nationals buying property on the Costa del Sol in 2026. France has both an active income and capital tax treaty with Spain (1995) and a bilateral inheritance convention that predates the EU (1963), making the France-Spain cross-border tax framework one of the most comprehensive available to non-Spanish buyers. French buyers also benefit from EU membership — no time restrictions, full free movement — and from using the euro, eliminating currency risk entirely. The most important French-specific considerations are the plus-value immobilière and social charges framework on capital gains, and the IFI wealth tax threshold that may apply to buyers with significant French or Spanish property portfolios.

EU free movement — no restrictions for French nationals

French nationals have full EU freedom of movement in Spain. There is no Schengen 90-day limit, no visa requirement, and no income threshold. If planning to stay more than three months continuously, register as an EU resident at the Oficina de Extranjería. After five years of continuous legal residence, permanent residency follows automatically.

The NIE

An NIE (Número de Identificación de Extranjero) is required before signing the private purchase contract. French nationals obtain this in Spain or at the Spanish consulate in France. Allow two to four weeks.

The France-Spain double taxation treaty

France and Spain concluded a comprehensive double taxation agreement in 1995, which entered into force on 1 July 1997. The treaty uses the credit method for French residents: Spain taxes Spanish-source income, and France taxes the same income as part of worldwide income but grants a tax credit (crédit d'impôt) equal to the French tax on that income, effectively neutralising French tax on Spanish-taxed income.

Rental income — rental income from Spanish property is taxed in Spain at 19% IRNR for EU non-residents on net income after allowable expenses. French tax residents must also declare this rental income in France on their annual déclaration de revenus. The credit mechanism of the DTA neutralises the French income tax on the Spanish rental income, since the Spanish IRNR paid functions as the equivalent French tax. However, French social contributions (prélèvements sociaux at 17.2%) may apply to rental income declared in France for French residents who are covered by the French social security system — though French residents who contribute to another EU member state's social security system may be exempt from CSG/CRDS on passive income from that state under EU Regulation 883/2004. This specific point requires advice from a French tax professional.

Capital gains — under Article 19 of the DTA, gains from the sale of Spanish real estate may be taxed in Spain (primary right) and also taken into account in France. Spain taxes the gain at 19% for EU non-residents (3% withheld by buyer at completion). France applies the plus-value immobilière rules to the same gain as declared worldwide income, granting a tax credit for the Spanish CGT paid.

Capital gains — the plus-value immobilière and social charges

When a French tax resident sells Spanish property, the gain must be declared in France in addition to the Spanish obligation. The French plus-value immobilière rate is 19% plus social charges of 17.2%, giving a headline rate of 36.2%. However, a tax credit for the Spanish CGT paid (19%) is available against the French 19% component, neutralising much of the French income tax portion. The social charges element (17.2%) is more complex: whether it applies in full, partially, or not at all depends on the taxpayer's social security situation.

Critically, the French taper relief system (abattements pour durée de détention) reduces the taxable gain progressively with duration of ownership. For CGT purposes, the gain is fully exempt after 22 years of ownership. Social charges on the gain are fully exempt after 30 years. For buyers planning to hold the property long-term, this taper relief makes a material difference to the eventual disposal tax position.

IFI — the French wealth tax on real estate

France levies the Impôt sur la Fortune Immobilière (IFI) — a wealth tax on real estate assets. IFI applies to French tax residents whose global net real estate patrimony (including Spanish property) exceeds €1,300,000 on 1 January of the tax year. Rates range from 0.5% on assets between €800,000 and €1,300,000 up to 1.5% on the portion above €10,000,000. Spanish property is included in the IFI calculation at its market value. Mortgages secured on the Spanish property can be deducted from its value for IFI purposes.

For buyers whose combined French and Spanish real estate holdings remain below €1,300,000 in total, IFI does not apply. For buyers at or above this threshold, IFI adds an annual holding cost that should be factored into the property economics from the outset.

Spanish IRNR — the Spanish annual obligations

As EU residents, French non-residents pay IRNR at 19% on imputed income (1.1% or 2% of cadastral value × 19% if not renting) or on net rental income after expenses (19%) if renting. Annual declaration on Form 210. On sale, 3% withheld by buyer (Form 211), final settlement on Form 210 within four months.

Currency — no exchange rate risk

France uses the euro. French buyers have no currency conversion exposure purchasing Costa del Sol property. The purchase price, taxes, and eventual sale proceeds are all denominated in euros. This is a straightforward advantage over non-eurozone buyers.

Purchase taxes and costs

New-build: IVA at 10%. Resale: ITP in Andalusia at 7%. AJD at 1.2% on mortgage deed. Legal fees 0.5–1.0% plus IVA. Notary and registry approximately 0.5–1.0%. Mortgage arrangement if financing 1.0–2.0%. Budget 12–14% of the purchase price as total ancillary cost for a financed new-build.

French inheritance and the 1963 France-Spain convention

France and Spain concluded a bilateral inheritance and gift tax convention in 1963 — one of the few such bilateral arrangements Spain maintains. This convention allocates taxing rights on specific asset categories between the two countries, reducing (though not always eliminating) double taxation on inheritance.

Under the 1963 convention, Spanish real estate is generally taxed in Spain for inheritance purposes. In Andalusia, direct family members (spouses, children, parents) benefit from the €1,000,000 allowance per beneficiary plus 99% reduction — making the effective Spanish ISD liability very low. The French inheritance tax (droits de succession) position for French residents inheriting Spanish property is shaped by the 1963 convention: Spain's ISD on the Spanish property can be credited against French inheritance tax, reducing double exposure.

French inheritance tax rates for direct family: spouses and civil partners (PACS) pay zero — France imposes no inheritance tax between spouses or civil partners. Children benefit from a €100,000 allowance per parent per child, with rates of 5% to 45% on the excess. Siblings face 35–45% rates after a €15,932 allowance. Distant relatives and unrelated heirs face 55–60%.

A Spanish will (testamento) is recommended. Under EU Succession Regulation 650/2012, French nationals may elect French law to govern succession. Coordinate with a French notaire and a Spanish notary or lawyer to ensure both jurisdictions are covered.

The buying process

1. Reservation (reserva) — €5,000–€15,000 holds the property. Retain an independent Spanish property lawyer.

2. Private purchase contract — binding contract. Off-plan: all stage payments covered by individual aval bancario (bank guarantee). Your lawyer confirms this before you sign.

3. Completion — signed before a Spanish notario. Your lawyer attends or holds power of attorney.

4. Registration — . Typically four to eight weeks.

Running costs

IBI — €600–€1,200 per year for a standard Marbella apartment. Community fees — €100–€200 per month on a standard urbanisation. Annual IRNR declaration on Form 210 — a Spanish gestor handles this for €100–€200 per year. IFI — applies only if total real estate net worth exceeds €1.3M.