247 Expat Insurance specialises in health insurance for people moving to or living in Spain. We no longer arrange reverse mortgages or equity release; this page is a general information guide.
If you are aged 65+ and own your home on the Costa del Sol, the hipoteca inversa lets you release tax-free equity — without selling, without monthly repayments, and while continuing to live in your Spanish home.
The Costa del Sol is one of Europe's most prestigious expat destinations, stretching from Nerja in the east through to Estepona and Sotogrande in the west.
The coastline encompasses Málaga city, Torremolinos, Benalmádena, Fuengirola, Marbella, Estepona, and dozens of well-established urbanisations and golf communities inland. Property values range from affordable apartments in Fuengirola to multi-million-euro villas on Marbella's Golden Mile.
Many expats who bought on the Costa del Sol in the late 1990s or 2000s now own properties worth considerably more than they paid. The hipoteca inversa (reverse mortgage) offers a regulated, government-backed way to release that equity without selling the property and without making monthly repayments. The loan is repaid only when the property is eventually sold — typically after the borrower passes away or moves into long-term care.
From Marbella's premium end to the more accessible markets of Fuengirola and Benalmádena, Costa del Sol property has delivered strong capital growth. Here is a snapshot of what the market looks like today.
The Costa del Sol has attracted a wide range of international residents for decades, creating a diverse and well-rooted expat population — many of whom now own homes with substantial equity.
The largest foreign community on the Costa del Sol, with strong concentrations in Fuengirola, Benalmádena, Marbella, and Nerja. Many have owned homes here since the late 1990s and 2000s and are approaching or already in retirement age.
A large Swedish and Norwegian community is particularly well-established around Fuengirola, which has become known as one of the most Swedish towns outside Sweden. Many Scandinavian residents own substantial long-held properties.
German nationals are present throughout the Costa del Sol, with a particularly notable concentration in Marbella and the inland golf communities. Many own higher-value properties in sought-after urbanisations.
An increasingly significant international community — particularly in and around Marbella, Puerto Banús, and the Golden Mile — including American, Middle Eastern, and other international buyers who have made the Costa del Sol their primary home.
Unsure whether your Costa del Sol property qualifies? — eligibility should be confirmed before you take any action.
The higher the property value and the older the borrower, the greater the amount that can be released. The table below provides illustrative figures for Costa del Sol homeowners at different ages and property values.
| Age | Property Value | Estimated Releasable Amount |
|---|---|---|
| 67 | €200,000 | €44,000 – €60,000 |
| 70 | €300,000 | €74,000 – €100,000 |
| 74 | €450,000 | €118,000 – €160,000 |
| 78 | €600,000 | €180,000 – €240,000+ |
Living costs on the Costa del Sol are notably higher than in less prestigious areas of Spain. Community fees in well-maintained urbanisations, annual IBI (property tax), property maintenance, gardening, pool maintenance, private healthcare top-ups, and day-to-day living can consume a significant and growing portion of a fixed pension income.
For homeowners sitting on €300,000 to €800,000 or more of property equity — equity that has grown substantially since purchase — a reverse mortgage offers a meaningful way to supplement income without the disruption and cost of selling and relocating. There is no requirement to leave the Costa del Sol lifestyle you have built.
The core appeal is simple: you have wealth tied up in your home. The hipoteca inversa unlocks a portion of that wealth as cash — tax-free — without requiring you to sell, move, or make monthly loan repayments. You continue living in your home, on your terms.
Common uses of released equity:
The questions our Costa del Sol clients ask most frequently about the hipoteca inversa.
Provided the property is your habitual residence (not a holiday home or investment property), is worth at least €150,000, is a flat or house (not land or commercial property), and meets the location eligibility criteria for the area, it may well qualify. Marbella is a major municipality and is generally covered. to confirm your specific address and property type.
The key factor is whether the property falls within an eligible municipality and whether it is classified as your habitual residence. Estepona is a significant municipality on the Costa del Sol. Properties in golf urbanisations are often detached houses or townhouses — both potentially eligible property types. Eligibility depends on the specific address and municipality.
British expats who were living in Spain before 31 December 2020 and hold a valid TIE card (Tarjeta de Identidad de Extranjero — the post-Brexit residence card) remain eligible for the hipoteca inversa. You must also have been empadronado (registered on the padrón) at the property for at least 3 years and be aged 65 or over. Provided these conditions are met, Brexit does not affect your eligibility.
Typical upfront costs include: a formal property appraisal fee (usually €300–€600); notary fees for the deed signing (typically €600–€1,500 depending on loan size); and land registry fees — which are reduced by 90% for reverse mortgages under Spanish law, making them significantly lower than for a standard mortgage. There may also be a small lender arrangement fee. All costs are set out in advance in the provider documentation.
The process involves Spanish legal and financial requirements that can be confusing — particularly for expats unfamiliar with the Spanish notary system, residency requirements, and property appraisal process.
