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Costa del Sol or the Canary Islands: where to buy investment property

Costa del Sol or the Canary Islands is a choice between the premium mainland coast and a year-round island climate. Málaga and Marbella offer brand and liquidity; Tenerife and Gran Canaria offer endless summer and a special IGIC tax regime instead of mainland VAT. We compare on the real new-build numbers.

Comparison table

Metric	Costa del Sol	Canary Islands
Average price per m²	€5,180/m²	€4,503/m²
Average rental yield	5.6%	5.3%
Price from	€229,000	€336,000
New-builds in catalogue	47	14
Climate	Mild winters, long season, Marbella winter sun	Endless summer, year-round season, even temperatures
Typical buyer	Premium buyer betting on liquidity and capital growth	Year-round rental investor, benefit from IGIC tax
Airports	AGP	TFS, LPA

Prices, yields and counts are computed from our new-build catalogue. Green marks the stronger side per metric.

Price per m²: side by side

Average price per square metre by coast, €

Rental yield: side by side

Average gross rental yield by coast, %

Who suits Costa del Sol

Costa del Sol suits buyers who value liquidity, capital growth and a wide choice of properties near a major airport. It is mainland premium with strong resale and steady international demand.

Who suits Canary Islands

The Canary Islands suit an investor in year-round letting: winter tourism from Northern Europe leaves almost no off-season, and the local IGIC tax is lower than mainland VAT, cutting the one-off cost of buying a new-build.

How to choose

The Canaries win on year-round rental occupancy and a lower purchase tax (IGIC instead of 10% VAT), but choice and liquidity are narrower there. Costa del Sol costs more in tax and often per m², but is stronger on resale and variety. For steady year-round income, choose the Canaries; for liquidity and capital growth, choose Costa del Sol.

New-builds: Costa del Sol

Off-plan · 2027 Q47% yield

Celeste Terraces

📍 Marbella, Costa del Sol

🛏 2🛁 2📐 71 m²Apartment

€440,000 · €6,201/m²

Off-plan · 2027 Q47% yield

Botanic Heights

📍 Fuengirola, Costa del Sol

🛏 5🛁 5📐 395 m²Villa

€1,833,000 · €4,640/m²

Off-plan · 2026 Q47% yield

Aurea Grove

📍 Benalmádena, Costa del Sol

🛏 5🛁 5📐 369 m²Villa

€1,751,000 · €4,744/m²

New-builds: Canary Islands

Off-plan · 2026 Q46.9% yield

Serena Park

📍 Maspalomas, Canary Islands

🛏 4🛁 4📐 254 m²Villa

€978,000 · €3,850/m²

Under construction · 2026 Q36.2% yield

Jardines Boulevard

📍 Playa San Juan, Canary Islands

🛏 3🛁 3📐 127 m²Apartment

€444,000 · €3,500/m²

Under construction · 2026 Q26.2% yield

Serena Grove

📍 Maspalomas, Canary Islands

🛏 3🛁 2📐 168 m²Penthouse

€855,000 · €5,091/m²

Frequently asked questions

Where is the purchase tax lower?

The Canary Islands: instead of the mainland 10% VAT on a new-build, the local IGIC tax applies at a lower rate, reducing the one-off cost of buying. Costa del Sol uses standard Spanish VAT.

Where is letting steadier?

The Canaries have year-round occupancy: winter tourism from Northern Europe almost removes the off-season. Costa del Sol has a long season, but winter demand is still softer.

Where is resale liquidity higher?

Costa del Sol: the Marbella and Málaga brand and proximity to a mainland hub make resale faster and easier than on the islands.

Which should I pick for year-round income?

The Canaries: a climate with no pronounced low season and Northern-European winter tourism give the flattest annual occupancy. Costa del Sol is closer to classic resort seasonality.