Castell de Ferro, located on the eastern end of the Costa Tropical, is another typically Spanish village that remains largely Spanish speaking and untouched by tourism. It has an average population of approximately 3000, which rises dramatically during the summer months. The town is named after the castle that was built by the Arabs to defend the natural harbour that it overlooks.

The town itself is made up of narrow winding streets that merge into the main sqaure, where can be found a variety of small bars and restaurants that constitute the nightlife of Castell de Ferro. Also in the town are supermarkets, a tobacconists, an ironmongers, along with a selection of smaller shops. There is also a weekly outdoor market on Saturdays.

The beach at Castell de Ferro is long and is mostly made of shingle; however, at the western end, small areas of sandy beach can be found. Water sports enthuisiasts can enjoy a range of activities including scuba diving and sailing. There is a lovely promenade that stretches two thirds of the way along the beach, with bars and restaurants dotted along it.