The Digital Nomad Visa (DNV) has become incredibly popular in Spain, with the numbers tripling between 2023-2024 years to almost 30,000. A significant proportion of those staying in Spain are also choosing the Costa del Sol, with Malaga ranked third in the world for digital nomad destinations (Spain overall is ranked number one).
The reasons are obvious why Malaga province is so attractive. Of course the 300+ days of sunshine, the natural beauty, and the lifestyle are famous worldwide. In addition, Malaga province has world class digital infrastructure, transportation infrastructure, healthcare services, international schools, and more.
Andalusia also has excellent tax benefits for the highly paid professionals that typically make up the population of DNV holders. There are the Spanish national tax rules through the DNV program, which provide low income taxes and no taxation of foreign assets. In addition, in Andalusia there are regional tax benefits, such as no inheritance tax and ultra low gift taxes.
Meanwhile, the regional and local governments – as well as private sector contractors – continue to build or expand regional infrastructure, increasing the region’s attractiveness.
The Malaga airport, for instance, already the fourth airport in Spain by destinations served, is scheduled for a €1.5 billion expansion. This will double capacity and increase the number of destinations to more than 200.
Additionally, there are plans – too slow moving it is true – to build out a rail line through the Costa del Sol. And plans are finally moving forward to improve traffic problems on the A7 highway along the coast.
Beyond general improvements that make the region more attractive, there has also been a specific outreach to digital nomads, drawing them to Malaga province. In August, 2025, the city of Malaga received a certification from AENOR (a Spanish national standards certification organization) as a digital nomad destination. It is the first city in Spain to receive this certification.
The result of all this has been a growth in digital nomad numbers, including a claimed 40% increase in demand for housing for DNV recipients on the Costa del Sol.
The dramatic growth in the number of digital nomads in Malaga province is important for a number of reasons both direct and indirect. It’s also an important indicator of the health of the region economically – in terms of jobs and foreign investment.
Directly speaking, the arrival of digital nomads in the Costa del Sol, helps support the long term rental housing market. That is particularly true of higher end housing that caters to the lifestyles of digital nomads, who must have a minimum of €4,516 of monthly income for a family of four.
For comparison, the average net household income in Spain for a family with children is €3,722. In Andalusia it is lower.
All the talk regarding housing has been about vacation rentals and the growing wave of regulation and restriction. But the influx of foreigners and even Spaniards from the north, has quietly made the long term rental market lucrative on the Costa del Sol.
In Estepona the rental yield is 5.85% overall but in the luxury sector they are substantially more, with rental yields in the luxurious Golden Mile area fetching between 8%-12%.
Digital nomads are also not all simply in Spain for a sabbatical year. Many are trying out the Spanish lifestyle to see how it fits their family. Ultimately, many stay behind to raise families, acquire long-term residency – and to buy houses. Inevitably, they will tend to buy in the areas where they settled and have rented.
Some studies suggest that digital nomads make up 25% of luxury home purchases in the Costa del Sol. If true, that is a significant floor under the luxury housing market in the region, contributing to price growth and economic development, especially in the construction sector.
But there are other direct effects of the DNV program. The high family income requirements mean that digital nomads tend to take advantage of more services, from gymnasiums and personal trainers to restaurants.
Digital nomads are also the impetus behind the explosive growth of coworking spaces in Malaga. Spain overall has 1,036 co-working spaces serving 105,000 tenants. Forty-seven of those co-working spaces are in Malaga province and they have an occupancy rate of 92%.
It is undoubtable that digital nomads are contributing to the growth and wealth of the Costa del Sol. This is having both direct impacts and indirect impacts.
But there are two other factors that we have to consider as well. For one, their arrival and visible contribution to the culture and economy encourages investment. They represent untapped demand and potential profit, jobs and more.
That investment comes in multiple forms, including infrastructure investment as the government seeks to encourage more visitors and residents.
It is also represented in both foreign direct investment and in the construction of new homes, new hotels, malls, and other private infrastructure. Andalusia, for instance, has seen a dramatic growth in FDI over the last decade, twice as much by percentage as Spain overall. According to Sur in English:
According to the analysis, the region generated 837 million euros in foreign direct investment, which is the second best figure of the last decade, representing a growth of 41% compared to 2023 (595 million). The comparison on a national level is also striking, given that the average growth in Spain was 19%.
Even more dramatic in terms of raw numbers are the investments in luxury housing projects that we see in the “golden triangle” of Marbella, Estepona, and Benehavís. At the end of 2024 there was an estimated €3.2 billion earmarked for luxury developments. This represents a greater than 20% increase.
And although the growth in investment in hotels slowed in 2024, it nonetheless counted for €269 million.
Of course, this isn’t all the result of digital nomads. There are a number of factors that are causing the current surge. But the growth of the digital nomad population feeds into a virtuous circle of growth, global awareness, popularity, infrastructure and business investment.
And many of these digital nomads become the best ambassadors to promote the Costa del Sol globally. Around 60% of digital nomads in Spain are not from EU countries, and 33% come from the Americas. They represent not only an enrichment of the local culture but also an opportunity for the region to continue its forward momentum and economic vibrancy.
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