Investing in a Villa in Nerja: The ultimate guide for foreigners 2025

Are you thinking about investing in a villa in Nerja? You are not alone. Every year, investors from the UK, Germany, the Netherlands, and Scandinavia choose the "Jewel of the Costa del Sol" not only for its climate but also for its legal security and return on investment.

However, the Spanish real estate market has its own rules. Buying a property in the Axarquía does not work the same way as in London or Berlin. In this guide by Narixa Villas, we explain the reality of the market in 2025, correcting myths and offering you real data.

1. Why is Nerja a safe haven for investment in 2025?

Beyond the lifestyle, Nerja offers solid economic indicators for the foreign investor:

• Superior holiday rental yield: Unlike traditional renting, a villa with a private pool in Nerja can generate between 1,800€ and 3,000€ per week in high season (July-August).
• Year-round tourism: Thanks to our unique microclimate, Nerja receives tourists 10 months a year, not just in summer, which guarantees income in the mid and low seasons too.
• Constant capital appreciation: Since there is little land available for new construction due to the geography (Sierra Almijara), existing villas maintain and increase their value year after year.

2. Essential procedures for foreigners (Legal Checklist)

Before signing anything, make sure you comply with Spanish regulations:

1. Get your NIE (Foreigner Identity Number): This is the ID for foreigners. It is mandatory for buying any asset in Spain. At Narixa Villas, we can help you process it at the Police Station.
2. Bank account in Spain: Necessary to set up direct debits for utilities (electricity, water, property tax/IBI). Banks like CaixaBank or Sabadell have managers who speak English and German.
3. Independent Legal Advice: Never pay a deposit without a lawyer checking that the home has no charges, debts, or planning infractions (very important in countryside villas).
4. Taxes in Andalusia (2025): Good news. The ITP (Property Transfer Tax) in Andalusia remains reduced at 7% (it used to be progressive up to 10%). Calculate an extra 10-12% on top of the selling price to cover ITP, Notary, and Registry fees.

3. Most profitable areas to buy a Villa in Nerja (Real Prices 2025)

The market has gone up. Forget the prices from 5 years ago. Below, we show you a realistic estimate for independent 3-bedroom villas with a pool:

4. The Tourist License: The key factor

If your goal is to rent out the villa when you are not using it, you need the Housing for Tourism Purposes License (VFT) from the Junta de Andalucía.

• Important: Not all properties can obtain it nowadays. Make sure to consult with us before buying. Buying a villa that already has a valid license increases its value immediately.

5. Common mistakes that will cost you money

• Underestimating maintenance costs: A villa with a pool and garden requires weekly care. Calculate about 150-200€/month in maintenance if you do not reside here.
• Buying without checking the legal status: Especially in rural areas (countryside), many houses are not correctly registered in the cadastre (AFO issues).
• Not relying on a local agency: International real estate portals sometimes show properties that are already sold or have outdated prices.

Looking for security in your investment?

At Narixa Villas, we are local experts. We don't just sell you a house; we advise you on real profitability, obtaining the tourist license, and subsequent management.

Contact Narixa Villas now

*Market data updated as of December 2025 based on real transactions in the Nerja and Axarquía area.