If you buy a property in Spain, you pay more than just the asking price. Buyer's costs in Spain are substantial, allow 10 to 15% on top of the purchase price, and they vary by region and by type of property (new build or resale). This article gives you a complete and up-to-date overview for the Costa Blanca (Valencia region).
Rule of thumb for the Costa Blanca (2025)
Resale property: allow 12–14% on top of the purchase price.
New build: allow 13–15% extra (higher stamp duty, but no survey needed).
Buying costs for a new build in Spain
With a new build you do not pay transfer tax (ITP) but VAT (IVA). In Spain, IVA on homes is 10%. On top of that comes stamp duty (Actos Jurídicos Documentados, AJD), which is 1.5% in the Valencia region, where the Costa Blanca is located.
| Item | Percentage / Amount | Notes |
|---|---|---|
| IVA (VAT) | 10% | On the purchase price, for a newly built residential property |
| AJD (stamp duty) | 0.5–2% | Varies by region; 1.5% in Valencia (Costa Blanca) |
| Notary fees | 0.2–0.5% | Depending on purchase price and complexity |
| Land registry fees | 0.1–0.25% | Registration in the property register |
| Legal fees | 0.5–1% | Lawyer (abogado), strongly recommended |
| NIE application | ± €20 | Spanish tax number, required for every purchase |
Example: new build purchase price €200,000 → IVA €20,000 + AJD €3,000 + notary €600 + registry €300 + lawyer €1,500 = ±€25,400 extra (12.7%).
Buying costs for a resale property
With an existing apartment or villa you do not pay VAT but transfer tax (Impuesto de Transmisiones Patrimoniales, ITP). In the Valencia region this is 10% of the purchase price. No additional stamp duty is payable.
| Item | Percentage / Amount | Notes |
|---|---|---|
| ITP (transfer tax) | 10% | In the Valencia region (Costa Blanca North and South) |
| Notary fees | 0.2–0.5% | Depending on purchase price and complexity |
| Land registry fees | 0.1–0.25% | Registration in the property register |
| Legal fees | 0.5–1% | Lawyer (abogado), strongly recommended |
| Building survey | ± €300–500 | Structural inspection, not compulsory but sensible |
| NIE application | ± €20 | Spanish tax number, required for every purchase |
Example: resale purchase price €180,000 → ITP €18,000 + notary €500 + registry €250 + lawyer €1,200 + survey €400 = ±€20,350 extra (11.3%).
Annual costs after the purchase
In addition to the one-off buying costs, there are recurring costs. As a non-resident (you live outside Spain), you are liable in Spain for the so-called Imputación de Rentas: a notional income tax on your second home, even if you do not rent it out.
| Item | Indicative amount | Notes |
|---|---|---|
| IBI (Spanish council tax) | €200–800/year | Municipal property tax |
| Community fees | €50–200/month | Upkeep of communal areas, pool, lift |
| Non-resident income tax | €200–600/year | Payable if you live outside Spain, even if the property is not rented out |
| Home and contents insurance | €300–600/year | Strongly recommended, sometimes required by the community of owners |
| Utilities (standing charges) | €50–150/month | Water, electricity, gas (for longer stays) |
Do you need an NIE?
Yes. The NIE (Número de Identificación de Extranjero) is your Spanish tax identification number and is compulsory for every property transaction in Spain. Without an NIE, the notary cannot execute the deed of sale.
You apply for the NIE at the Spanish consulate in your country of residence or at the Oficina de Extranjeros in Spain. The cost is around €20. The application can take several weeks, so plan ahead.
Getting a mortgage in Spain as a non-resident
Spanish banks usually lend non-residents up to 60–70% of the valuation (LTV). Interest rates are slightly higher than in many Northern European countries. Some buyers finance the purchase by releasing equity from their home in their country of residence, which is often simpler.
Please note: with a mortgage there are additional mortgage costs (valuation fees, mortgage deed at the notary). Allow an extra 1–2% on top of the buying costs mentioned above.
Tip: rent first, buy later
Many people who end up buying on the Costa Blanca first rented in the region for one or more seasons. That way they learn which area really suits them and avoid a costly mistake. Renting a holiday apartment gives you time to look around at your leisure, meet estate agents and get a feel for each season.
More on this topic: New build Costa Blanca: buy now or rent first?
Get to know the Costa Blanca before you buy
Rent one of our apartments in Calpe or Torrevieja. Luxury holiday homes, direct from the owner, no platform fees.