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

This guide is written for buyers from the Gulf Cooperation Council — the UAE, Saudi Arabia, Kuwait, Qatar, Bahrain, and Oman — purchasing property on the Costa del Sol in 2026. Gulf buyers occupy a unique and in many respects straightforward tax position: none of the GCC member states levy personal income tax on individuals. This means Spanish property income and capital gains paid to the Spanish tax authority represent the complete and sole tax obligation — there is no domestic Gulf-side tax liability to stack on top. This guide sets out that framework, the residency landscape following the Golden Visa closure, and the practical process for purchasing from the Gulf, including the power of attorney route most commonly used by Gulf buyers.

No personal income tax in GCC countries — the defining advantage

The UAE, Saudi Arabia, Kuwait, Qatar, Bahrain, and Oman do not levy personal income tax on individuals. There is no income tax on salaries, rental income, investment returns, or capital gains at the personal level in any of these jurisdictions. This is the fundamental difference between Gulf buyers and buyers from any European nationality. A German buyer of a Costa del Sol property must declare Spanish rental income in Germany and address the Progressionsvorbehalt. A UK buyer must report to HMRC and top up to the UK rate. A Gulf buyer pays Spanish tax and stops — there is no domestic return to file, no credit mechanism to manage, and no additional liability at home.

The practical implication: the 24% IRNR Spain charges on non-EU non-residents is the full and final tax cost of owning Spanish property for Gulf buyers. No additional layer sits above it.

Property purchase rights — all GCC nationals can buy freely in Spain

There are no nationality-based restrictions on buying property in Spain. UAE, Saudi, Kuwaiti, Qatari, Bahraini, and Omani nationals have the same right to purchase residential property as buyers from any country. An NIE (Número de Identificación de Extranjero) is required before signing the private purchase contract and is obtainable at a Spanish Comisaría de Policía Nacional or through Spanish consulates in the Gulf. It can also be obtained remotely via power of attorney — see the section below.

The proposed 100% surcharge on non-EU property buyers — current status

The Spanish government submitted a draft bill to Parliament in early 2025 proposing a 100% supplementary surcharge on the Transfer Tax (ITP) for second-hand property purchases by non-EU, non-resident buyers. If enacted, this would double the effective ITP from 7% to 14% on qualifying resale transactions. As of this writing, the proposal has NOT been enacted into law. The Spanish government lacks an absolute parliamentary majority and the proposal faces significant opposition. New-build purchases — which attract IVA at 10% rather than ITP — appear to fall outside the scope of the current proposal. Buyers who take up Spanish legal residency before purchase may also fall outside the non-resident category targeted. Verify the current legislative status with an independent Spanish lawyer at the time of purchase.

The UAE-Spain double taxation treaty

Spain and the UAE signed a comprehensive double taxation agreement that entered into force in 2007. The treaty covers income from immovable property, rental income, and capital gains from property sales. Spain has primary taxing rights over Spanish real estate income and gains under the treaty. Since the UAE imposes no personal income tax, there is no UAE-side liability to credit or offset — the treaty's credit mechanism is effectively irrelevant for individual Gulf buyers. The practical result is that Spain taxes at its non-EU IRNR rate and that is the complete position.

Saudi Arabia, Qatar, and Kuwait have also concluded double taxation agreements with Spain. In all cases, the same logic applies: Spain taxes Spanish property income at IRNR rates, and since the Gulf state imposes no personal income tax, no additional home-country liability arises.

Spanish IRNR — 24% non-EU rate

GCC nationals are non-EU, non-EEA residents and pay IRNR at 24%. For properties not rented out, the Spanish tax authority calculates a deemed income of 1.1% or 2% of the cadastral value, taxed at 24%, declared annually on Form 210 by 31 December of the following year. For rented properties, the 24% rate applies to gross rental income — no expense deductions are available to non-EU non-residents, unlike EU buyers who pay 19% on net income after expenses. For a property with a cadastral value of €200,000 generating no rental income, the annual IRNR on imputed income is approximately €528 — modest. For a rented property generating €30,000 gross rental income, the Spanish IRNR would be €7,200. This is the total tax cost — no Gulf-side liability follows.

The Golden Visa — closed since April 2025

The Spanish Golden Visa property investment route was among the most important residency pathways for Gulf buyers. It allowed non-EU nationals who purchased residential property worth €500,000 or more to apply for a renewable Spanish residence permit, with full Schengen freedom of movement. Spain closed the Golden Visa to new property-based applications on 3 April 2025 under Organic Law 1/2025. It is no longer available. Buyers who reserved before that date and completed qualifying conditions may have retained vested rights — confirm with a Spanish immigration lawyer if relevant.

The Golden Visa closure is the single biggest change to the Gulf buyer landscape on the Costa del Sol. Many Gulf buyers purchased primarily or partly for residency. That pathway is now closed and alternative routes are more demanding in terms of income requirements and time commitments.

Residency options for Gulf buyers in 2026

Non-lucrative visa (Visado de Residencia no Lucrativa) — the most practical alternative for Gulf buyers seeking Spanish residency. Requires demonstrable income of approximately €2,400 per month for a single applicant (around €28,800 per year), comprehensive private health insurance with full Spain coverage, and a clean criminal record. Does not permit employment or self-employment in Spain. Renewable annually, leads to permanent residency after five years of continuous legal residence. Gulf nationals with passive income from investments can typically meet this threshold without difficulty.

Digital nomad visa — available to remote workers earning income from outside Spain. Requires proof of employment or client contracts with non-Spanish entities, income above 200% of the minimum wage (~€2,849 per month), and health insurance.

Investor visa (non-property routes) — Spain retains investment-based residence options through financial investments (€1M+ in Spanish business, €2M+ in Spanish government bonds) even though the property route is closed. These are less commonly used.

For Gulf buyers who do not wish to take up residency and simply want to own and visit their Costa del Sol property, the Schengen 90-day rule applies: maximum 90 days across all Schengen countries in any rolling 180-day period.

Currency — USD peg and the EUR exposure

The currencies of the major Gulf buyer nationalities are all pegged to the US dollar: the UAE dirham (AED) at 3.6725 per USD, the Saudi riyal (SAR) at 3.75 per USD, the Qatari riyal (QAR) at 3.64 per USD, and the Bahraini dinar (BHD) at 0.376 per USD. Kuwait's dinar is pegged to a currency basket but closely tracks the USD. These pegs are longstanding and institutionally backed.

Because these currencies are pegged to the USD rather than the EUR, Gulf buyers do not face currency risk in the AED/USD or SAR/USD sense — those rates do not move. The exposure they do face is USD/EUR: when the dollar strengthens against the euro, the effective cost of a euro-denominated Spanish property falls in Gulf currency terms, and vice versa. Historically, the USD/EUR rate has moved by 5–15% in a given year. On a €1M purchase, a 10% adverse move in USD/EUR adds approximately AED 136,000 (around €37,000) to the effective cost in dirham terms. For large purchases — which characterise the premium Marbella market Gulf buyers typically target — USD/EUR timing and management is worth addressing.

Specialist FX brokers offer competitive USD/EUR and AED/EUR rates and forward contracts for large property transactions. Many Gulf buyers hold USD or EUR accounts in international banking centres (London, Geneva, Singapore) from which transactions can be executed with minimal conversion costs.

Purchasing remotely — power of attorney

Gulf buyers frequently complete Spanish property purchases entirely remotely, visiting Spain only for key milestones or not at all. Spanish law allows a buyer to grant power of attorney (poder notarial) to a trusted individual — typically the buyer's Spanish property lawyer — to sign contracts, obtain the NIE, and complete the purchase at the notary on the buyer's behalf. The power of attorney document must be notarised and in most cases apostilled in the buyer's home country (UAE, Saudi Arabia, etc.) before being used in Spain. The buyer's physical presence is not required for any stage of the transaction. Roccabox coordinates this process as standard for Gulf clients and works alongside your appointed Spanish lawyer at every stage.

No GCC inheritance taxes — a complete absence

None of the GCC member states — UAE, Saudi Arabia, Kuwait, Qatar, Bahrain, or Oman — impose inheritance tax or gift tax on individuals. There is no domestic Gulf-side inheritance tax exposure on Spanish property held by Gulf residents. The only inheritance tax applicable to a Gulf buyer's Costa del Sol property is Spanish ISD. In Andalusia, direct family members (spouses, children, parents) benefit from a €1,000,000 tax-free allowance per beneficiary plus a 99% reduction on the remaining tax quota. In practice, the total inheritance tax on a Costa del Sol property passing to a Gulf buyer's direct family is negligible.

A Spanish will (testamento), drafted by a Spanish notary and registered in Spain's Central Register of Wills, is recommended to ensure efficient and rapid administration of the Spanish estate. Given that most Gulf buyers' assets are internationally distributed and their executors may be based in multiple jurisdictions, a clear Spanish will prevents delays and additional probate costs.

Purchase taxes and costs

New-build properties: IVA at 10% of the purchase price. Resale properties: ITP at 7% in Andalusia (subject to any enacted non-EU surcharge — verify at time of purchase). AJD stamp duty at 1.2% on the mortgage deed if financing. Independent legal fees 0.5–1.0% plus IVA. Notary and registry approximately 0.5–1.0%. Budget 12–14% of the purchase price as total ancillary cost for a financed new-build.

Islamic finance considerations

Some Gulf buyers prefer Sharia-compliant property financing. Spanish domestic banks do not currently offer Islamic mortgage products. International banks with Islamic finance divisions — including several UAE-headquartered banks and some UK-based Islamic finance providers — can structure murabaha or ijara arrangements for Spanish property acquisition. These products typically require more complex structuring and higher arrangement costs than conventional Spanish mortgages but are available to Gulf buyers who require them. Inform your Roccabox adviser at the outset if Sharia-compliant financing is a requirement.

The buying process

1. NIE and power of attorney — obtain your NIE through the Spanish consulate in your home country (Abu Dhabi, Riyadh, Kuwait City, Doha all have Spanish consular representation) or, more commonly, grant a power of attorney to your Spanish lawyer who will obtain the NIE on your behalf and complete all transaction steps in Spain.

2. Reservation (reserva) — €5,000–€15,000. Your Spanish lawyer reviews the reservation agreement remotely. Funds transferred internationally to a Spanish client account.

3. Private purchase contract (contrato privado de compraventa) — binding contract. For off-plan: all stage payments covered by individual aval bancario. Your lawyer confirms before you (or your representative under power of attorney) signs.

4. Completion — signed before a Spanish notario. Your lawyer attends on your behalf if you are not present. Funds transferred from your international bank account to the completion account.

5. Registration and handover — title registered at the . Keys can be handed to a property manager or Roccabox can facilitate if you are not present in Spain.

Running costs

IBI — approximately €600–€1,200 per year for a standard Marbella apartment, up to several thousand for premium villas. Community fees — €100–€200 per month on a standard urbanisation, €600–€2,000+ per month on high-amenity luxury developments. Annual IRNR declaration on Form 210 — a Spanish gestor handles this remotely for €100–€200 per year. Property management services are widely available in Marbella for absentee Gulf owners.