Bank repossession properties for sale in Costa del Sol
Repossessed properties for sale in Costa del Sol
Mortgages in Spain are the most common form of financing if you want to invest in a property.
Buying a property in Spain requires this for most people, due to the high land and property prices. If you do not have the funds in your account to pay immediately, you will need to apply for a loan or credit, usually secured by a mortgage on the property purchased.
It cannot be recommended strongly enough. If you want to apply for a bank loan, be careful. Do not rush to the nearest and first bank. Before you decide, carefully compare the various offers on the financial market to assess what is best suited to your ability to pay and your needs.
Financing a repossessed property
We also have partnerships with various financial institutions and credit companies that we can refer you to. However, it should be noted that the vast majority of repossessed property sales in Spain are carried out through the bank that has taken over the property, and therefore the bank in question is used to finance the property.
When you buy a repossessed property in Spain, the bank that has taken over the property may offer better financing than usual, in some cases up to 90% of the price. For 'normal' home purchases, many banks lend up to 80% of the price for a home you will live in and up to 70% for a holiday home, and non-residents are often offered less.
If you want to compare financing options, an easy way to compare mortgages is to look at the TAE (Tasa Anual Equivalente, the annual percentage rate).
The TAE shows the total cost of the loan as a yearly percentage: not only the interest, but also the bank's fees and other costs the bank knows of, such as the valuation of the home and any insurance you must take out to get the loan on the terms offered. For a variable-rate mortgage, the TAE assumes that today's interest rate stays unchanged.
Of course, it is always useful to compare the total cost (interest, bank charges and costs) of each credit arrangement.
The many bank repossession sales in Spain naturally make investing in land and property attractive. However, you need to be very careful about what you get into if you don't know the local conditions.
It is a good idea to ally yourself with a real estate agent and a lawyer you can trust in this regard.
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Compulsory auctions and sales on the Costa del Sol
Unlike in other countries, the debtor (obligor) of the mortgage is liable for all its present and future assets. Defaulting on a mortgage therefore has far-reaching consequences.
The debtor loses his property in a civil foreclosure and virtually all other assets are seized. This includes deposits in bank accounts and all other assets belonging to the debtor as well as any guarantees.
Foreclosure and repayment of mortgages are governed by Spanish law ("Civil Code" under Articles 1175 and 1849).
If for any reason the debtor does not pay his instalments on land and real estate, the defaulted payments may be entered in the lists of defaults (ASNEF and/or RAI). This simultaneously prevents the debtor's access to future financing for a purchase or a new loan/priority loan.
In addition, attachment of wages, pensions or salaries is a legal measure aimed at ensuring the recovery of debts. However, under rules in force since July 2011, part of the debtor's income cannot be seized if the foreclosed home was the debtor's main residence and the sale did not cover the debt: 150% of the Spanish minimum wage, which in 2026 means €1,831.50 a month.
A further 30% of the minimum wage, €366.30 a month in 2026, is protected for each member of the household who does not have a regular income above the minimum wage.
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Before the bank starts the repossession process
In Spain, the repossession process ends with the house being taken over by the bank. The takeover starts when the debt is in arrears for several months and the debtor has not met his monthly obligations.
The repossession of the property by the bank follows a legal procedure which involves high costs for the debtor. Once legal proceedings have been initiated, the debt increases by a further 30% in terms of interest, legal costs and expenses.
Before this period, the repossession procedure from the bank is initiated; this is a good opportunity to negotiate directly with the owner about the purchase of the property, as it is assumed that the owner is interested in selling the house and saving as much as possible of his investment and credit.
The repossession process in Spain
Once the foreclosure process has started, before the "housing bubble" in Spain burst, it was common to organize auctions of seized property. During these auctions, anyone could bid for the property.
However, the problem after the collapse of the housing bubble was the lack of solvent buyers during these auctions.
This meant that market values were extremely low, not only because of the market collapse, but also so that debtors could pay off as much of their mortgage debt as possible.
As a result, banks in Spain started repossessing property. They opened the possibility for debtors to voluntarily surrender their property in case of default, which gave the debtor an incentive to offer his property to the creditor immediately to avoid having to start a costly legal process.
Resale of property from a forced sale
If the bank takes over the house, they try to sell it as quickly as possible to avoid the ongoing costs of owning a property in Spain. The bank will often consider any reasonable offer.
Moreover, buying a house repossessed from the bank can give an investor better loan terms than usual. Banks look forward to getting rid of properties and are very open to assessing your offer.
However, it should be said that the shorter the time the property has been in the bank's possession, the higher the offer must be for the bank to accept it. Banks often have internal guidelines on how high bids can be made for their properties which they must follow.
As mentioned above, you should always be careful when buying a foreclosed property in Spain. When you apply for a loan, the bank usually becomes an ally, trying to check that everything is in order with the property you are buying. However, this does not apply in the case of foreclosed properties.
There may be hidden traps, such as land charges, unpaid local taxes, illegal residents or areas that are uninhabited or particularly bad for crime in the neighborhood, etc. It is a "must" that you inspect the property.
Address
Carril de la Cordobesa, 29, local
29003 Málaga
Contact us
+45 2623 9899
+34 602 611 591
info@costadelcasa.com
Opening hours
Monday - Friday: 9-18
Saturday - Sunday: Closed
Address
Carril de la Cordobesa, 29, local
29003 Málaga
Contact us
+45 2623 9899
+34 602 611 591
info@costadelcasa.com
Opening hours
Monday - Friday: 9-18
Saturday - Sunday: Closed
Tips on buying bank repossession properties
Once you've found a property that interests you, it's worth remembering that bank repossession properties after a forced sale are sold on a 'bought as seen' basis.
Renovation projects can be good, but they are costly. Therefore, you should inspect the property to assess its physical condition and determine any repairs and costs.
Estate agents are a good idea when buying bank repossessions
Contact a real estate agent to get an idea of the prices of comparable properties in the area. This will help you determine how much your offer should be.
The fact that a property is a bank repossession does not mean that the price is lower than for other properties in the same area. As we have sometimes seen, an overvalued price can save a seller from a loss.
Taxes and debts in a repossessed property
You need to do a thorough check of taxes and debts if you buy a repossessed property type. Most debts are recorded in the Spanish land registry.
However, be careful, there may be information about other debts that are not there. Again, it's a good idea to have a real estate agent and a lawyer on hand, when you are buying repossessed houses or other repossessed properties.
Spanish bank repossessions property type is you get what you buy/see. There is no going back and almost no responsibility taken by the Spanish banks after the sale.
The bank again
When the bank is acting as seller, don't be blind to the fact that the bank has a host of lawyers who know all the laws in Spain and all the tricks that can turn the deal in the bank's favour. In addition to the estate agent, it is a good idea to hire a lawyer.
We have good relationships with several lawyers that we trust and can recommend.
The complexity of bank repossessions makes it necessary to hire a lawyer who is specialised and experienced in repossessed properties for sale in Spain.
Given the counterparty and the legal complications that may be associated with the acquired property, this is an additional "must".
The lawyer's fee is not regulated in Spain: it is agreed freely between you and the lawyer, who must tell you the fee in advance, for example in an engagement letter. Whatever the fee, it is nothing compared to the problems you may face on your own. The lawyer can also help with agreements with banks.
Local markets for bank repossessions
At the top of the page, you can see which bank repossessed properties are on offer and at what price in the south of Spain, around the coast.
There are still many repossessed properties after foreclosures in Spain. If you are looking for new developments in Costa del Sol, then you do not have many repossessed properties to choose from, but it's not impossible.
Bank repossessions in Costa del Sol
There are many repossessed properties for sale in Costa del Sol in Andalusia in the Spanish countryside. You will be able to find old villas and country houses alongside more modern homes and newly built properties.
Inland, away from the coast, are the more sparsely populated areas. Here you can enjoy the benefits of living in the countryside and have all the amenities of modern society just a short drive away.
On the coast itself, buying and renting property has long been popular. With good quality villas and apartments from Nerja to Sotogrande, this comes as no surprise.
In recent years, the Spanish property market on the Costa del Sol has provided stable and favourable returns on investment. Property prices in the east are in many cases still lower than in the western Costa del Sol and the Marbella area.
The average price is the highest in the Marbella area.
Infrastructure and services in the area are constantly improving.
Forced sales of real estate are mediated, after treatment in Spanish courts, through private banks, private investment portfolios or managers from countries other than Spain. A portfolio consists of several investments in assets in order to spread the risk - in other words, there may be several financiers.
There are many opportunities to buy properties that are facing foreclosure, abandoned properties or properties taken over by the bank, provided you know where to find these types of properties.
This is where the estate agent comes in.
A reputable estate agent does not have thousands of bank repossession properties for sale. As we have already mentioned, we are primarily interested in properties that are priced and valued and that require and allow for a quick sale. Of course, we also want to limit the sale of foreclosed properties, as this allows us to effectively market each property on a daily basis.
However, it is possible to find practically all the foreclosed properties on the Costa del Sol on this website, as we have access to a common database of properties.
Bank repossessions in Malaga
Property prices have risen sharply in recent years: according to Spain's National Statistics Institute (INE), prices in Andalusia rose by an average of 13.1% in 2025. Many believed that price increases would continue to be subdued after the economic crisis, especially for properties taken over by the banks.
It was expected that it would be difficult to sell properties, but this has not been the case.
In towns on the coast such as Mijas, Fuengirola, Torremolinos, Benalmádena and Marbella, homes more than five years old were valued at between about €3,300 and €4,500 per square metre in the second quarter of 2026. At the lower end of the market there were particularly many easy bargains, but they have now almost all disappeared.
Investing in an apartment or house in Malaga seems to be an excellent choice because of the high appreciation. Overall, this makes Malaga an excellent place to invest in or acquire a holiday home or permanent residence in a beautiful, historic and vibrant coastal city.
Repossessed properties for sale in Torremolinos
Torremolinos is one of the Costa del Sol's most popular seaside resorts, renowned for its fantastic cuisine, long beautiful beaches and favorable climate.
Whether you want to buy a holiday home in Torremolinos for yourself, just as an investment or if you want to move to sunny Andalusia, either for part of the year or full time, Torremolinos is a great location.
You can choose either a spacious, well-located apartment by the sea with wonderful views, easy access to any of the four beaches and often with a communal pool and other facilities or a larger villa a little further away from the center with more space and privacy.
You'll find a wide range of repossessed properties to suit all budgets. There are many offers on properties subject to compulsory sale in Torremolinos, not least because many expats choose Torremolinos as their permanent address.
Repossessed property for sale in Benalmadena
The town of Benalmadena covers an area of about 27 square kilometres and stretches from the Sierra de Mijas down to the Mediterranean coast.
Located between the towns of Torremolinos and Fuengirola, just 19 km from Málaga airport, Benalmadena is connected to all the main coastal towns by local trains and buses.
Benalmadena is one of the most popular tourist destinations on the Costa del Sol and is rich in attractive beaches, gardens, amusement parks and a fantastic marina.
With the fluctuating Spanish property market, there are opportunities to find a bargain. If you are looking to buy a repossessed property in Benalmadena you can make many bargains.
The town is home to many expats all year round and many foreign-owned companies. This is not least because property in Benalmadena has proven to be a good long-term investment.
Bank repossessions in Fuengirola
Fuengirola is close to Malaga and is one of the Costa del Sol's most popular seaside resorts with many good restaurants, long beaches and an enviable climate. Fuengirola is popular with families and couples.
Fuengirola is also home to several British and Scandinavian shops, restaurants and bars, such as the Danish supermarket Onlinebutikken, the Swedish grocer Spisa Foodmarket, the Nordic supermarket Casa Nórdica and the Danish smørrebrød restaurant Holger Danske. On the seafront you will also find the Danish bar MOMAG Burgers & Gin, formerly Bentley's gin bar.
Whether you're looking for a holiday home for yourself, an investment or you want to move to sunny Andalusia, either for part of the year or full time, Fuengirola is in a great location.
There are many great deals on bank repossessions in Fuengirola. There are many houses and apartments for sale in Fuengirola.
Mijas Costa del Sol bank owned properties for sale
Mijas stretches all the way from the mountains on the "back side" and down to the coast. The area is divided into several smaller towns such as Mijas Pueblo, Mijas Costa and La Cala de Mijas which are located by the sea.
In Mijas you can stay in an apartment in the center of the town or in a more rural setting overlooking the mountains. Many foreigners live in Mijas, which can make it easier for those who don't speak Spanish.
There are also several British shops in the area, where you can find goods like those available in England.
There are good opportunities to find your dream house or apartment if you want to buy a property in Mijas.
During the crisis there were many properties for sale in Mijas Costa del Sol.
Bank repossessed properties in Marbella
Marbella is a world-class town with a distinctive atmosphere, offering excellent Spanish and international Michelin-starred cuisine, stunning beaches and a subtropical climate.
You can choose the glitzy glamorous lifestyle with a property to match - or you can opt for a spacious, conveniently located apartment in the center of this exclusive resort, a luxury villa just outside or a more rural residence tucked away in the mountains offering greater privacy.
There are many great offers on sales of all types of properties and homes in Marbella. The popularity of the town, with wealthy foreigners working with their own businesses, suggests that buying a property in Marbella is a good long-term investment.
Marbella also hides the playground of the rich, Puerto Banús, which locals call mini-Monaco. It's in this part of Marbella that you'll find the big luxury yachts and supercars.
Estepona
Estepona has become a trendy place for both foreigners and Spanish residents when it comes to buying a holiday home. Although Estepona doesn't have the same glamour as neighboring Marbella, it retains the charm of a traditional Andalusian fishing village.
As we have seen elsewhere on the Sun Coast, there are many options when it comes to buying properties that are either facing repossession, that the owner has left to sell in a hurry or that have been taken over by the bank.