Buying property on the Costa Blanca involves more than the advertised price.
Buyers should budget for purchase taxes, independent legal checks, notary and land registry costs, standard completion administration and annual ownership expenses.
The exact amount depends mainly on whether the property is resale or new-build, whether the taxable value is above or below €1M, whether financing is used and the buyer’s personal situation.
Last reviewed: 1 July 2026
Jurisdiction: Valencian Community, Spain
Important: this article is general information only. It is not legal, tax, mortgage or financial advice. Buyers should confirm all costs with an independent Spanish lawyer or tax adviser before signing a reservation contract.
Quick Summary
- Resale homes below €1M on the Costa Blanca are generally subject to 9% Transfer Tax, known in Spain as ITP.
- Resale homes above €1M are generally subject to 11% Transfer Tax / ITP.
- New-build homes are generally subject to 10% VAT plus 1.4% Stamp Duty, known in Spain as AJD.
- Independent lawyer fees are typically around €1,500–€3,000, usually plus VAT unless quoted otherwise.
- As a practical buyer budget, estimate around +11% for resale below €1M, +13% for resale above €1M and +13.5% for new-build.
- These estimates exclude financing, furniture, renovation, rental setup and ongoing ownership expenses.
Quick comparison
| Purchase type | Main taxes | Lawyer | Practical buyer budget |
|---|---|---|---|
| Resale below €1M | Transfer Tax / ITP 9% | €1,500–€3,000 | approx. +11% |
| Resale above €1M | Transfer Tax / ITP 11% | €1,500–€3,000 | approx. +13% |
| New-build | VAT 10% + Stamp Duty / AJD 1.4% | €1,500–€3,000 | approx. +13.5% |
| Commercial / non-residential property | VAT / ITP case by case | case by case | requires tax review |
The practical buyer budget includes the main purchase taxes, independent lawyer, notary, land registry and standard completion administration.
It does not include mortgage or financing costs, furniture, renovation, rental setup, upgrades, property management or ongoing ownership expenses.
1. Resale property below €1M
If you buy a resale property on the Costa Blanca, the main purchase tax is usually Transfer Tax, known in Spain as ITP — Impuesto sobre Transmisiones Patrimoniales.
For resale homes below €1M in the Valencian Community, the general ITP rate is currently 9%.
As a practical buyer budget, estimate around +11% on top of the purchase price.
Example: €500,000 resale property
Purchase price: €500,000
Transfer Tax / ITP at 9%:
€500,000 × 9% = €45,000
Estimated independent lawyer fee:
€1,500–€3,000, usually plus VAT unless quoted otherwise
Notary, land registry and standard completion administration:
Variable, depending on the transaction
Practical buyer budget:
Around +11%, or approximately €55,000
Estimated all-in acquisition budget:
Around €555,000
This excludes financing, furniture, renovation, rental setup and ongoing ownership expenses.
2. Resale property above €1M
For resale properties above €1M, buyers should budget differently.
In the Valencian Community, resale properties or rights with a taxable value above €1M are generally subject to 11% Transfer Tax / ITP.
As a practical buyer budget, estimate around +13% on top of the purchase price.
Example: €1,200,000 resale property
Purchase price: €1,200,000
Transfer Tax / ITP at 11%:
€1,200,000 × 11% = €132,000
Estimated independent lawyer fee:
€1,500–€3,000, usually plus VAT unless quoted otherwise
Notary, land registry and standard completion administration:
Variable, depending on the transaction
Practical buyer budget:
Around +13%, or approximately €156,000
Estimated all-in acquisition budget:
Around €1,356,000
This excludes financing, furniture, renovation, rental setup and ongoing ownership expenses.
High-value buyers should also review wealth tax exposure and ownership structure before reserving, especially if they already hold other Spanish or international assets.
3. New-build property
If you buy a new-build residential property from a developer, the purchase is generally subject to VAT instead of ITP.
For most new residential homes in Spain, VAT is generally 10%.
In the Valencian Community, new-build purchases are also generally subject to Stamp Duty, known in Spain as AJD — Actos Jurídicos Documentados. The general AJD rate is currently 1.4%.
As a practical buyer budget, estimate around +13.5% on top of the purchase price.
Example: €500,000 new-build property
New-build price: €500,000
VAT at 10%:
€500,000 × 10% = €50,000
Stamp Duty / AJD at 1.4%:
€500,000 × 1.4% = €7,000
VAT + AJD total:
€57,000
Estimated independent lawyer fee:
€1,500–€3,000, usually plus VAT unless quoted otherwise
Notary, land registry and standard completion administration:
Variable, depending on the transaction
Practical buyer budget:
Around +13.5%, or approximately €67,500
Estimated all-in acquisition budget:
Around €567,500
This excludes financing, furniture, upgrades, snagging support, rental setup and ongoing ownership expenses.
4. Why resale and new-build costs are different
Resale and new-build purchases are taxed differently.
A resale property is usually bought from a private owner or previous owner. It is generally subject to Transfer Tax / ITP.
A new-build property bought from a developer is generally subject to VAT and Stamp Duty / AJD instead of ITP.
This means two properties with the same advertised price can have different total acquisition costs.
Before comparing resale and new-build opportunities, buyers should compare the full all-in acquisition budget, not only the asking price.
5. What the practical budget includes
The practical buyer budget normally includes:
- main purchase tax;
- independent lawyer fee;
- notary fee;
- land registry fee;
- standard completion administration;
- basic post-completion registration support.
As a simple guide:
- resale below €1M: around +11%;
- resale above €1M: around +13%;
- new-build: around +13.5%.
These are practical acquisition budgets, not fixed official charges.
6. What the practical budget does not include
The estimates above do not include:
- mortgage or financing costs;
- bank valuation;
- mortgage broker fee, if applicable;
- currency transfer costs;
- furniture;
- renovation;
- upgrades or extras in a new-build;
- snagging support;
- rental licence or rental setup;
- property management;
- community fees after completion;
- annual ownership expenses.
These items should be calculated separately.
7. Financing costs are separate
If financing is used, mortgage-related costs should be calculated separately.
The final amount can differ depending on whether the mortgage is arranged:
- directly with a bank;
- through a mortgage broker;
- through a lawyer’s banking contact;
- with support from the buyer’s advisor.
Mortgage-related costs may include:
- valuation fee;
- mortgage broker fee, if applicable;
- bank arrangement costs, if applicable;
- required insurance or linked products;
- currency transfer costs;
- additional administrative work.
Spanish banks commonly lend to non-resident buyers up to around 60–70% of the lower of purchase price or valuation. The final loan amount depends on the buyer profile, income, age, currency, debts and the property itself.
8. The tax base should be checked
Buyers should not assume that purchase tax is always calculated only on the agreed purchase price.
For resale purchases, the lawyer should check the tax base before completion. In Spain, the taxable base can be affected by cadastral reference values or valuation rules.
Before committing, ask your lawyer to check:
- agreed purchase price;
- cadastral reference;
- applicable tax base;
- whether a reference value applies;
- whether the declared price creates any tax-review risk;
- whether any reduced rate could apply.
Reduced rates may exist in specific cases, often linked to habitual residence, buyer profile, disability, age, family status or property value limits.
Many international buyers purchasing a second home or investment property should not assume they qualify for reduced rates.
9. Annual ownership costs
After completion, buyers should budget separately for annual ownership costs. These are not included in the +11%, +13% or +13.5% acquisition estimates.
As a practical screening guide for the Costa Blanca:
| Cost | Typical timing | Practical guide |
|---|---|---|
| IBI property tax | Annual | municipal property tax, calculated on cadastral value |
| Waste charge / basura | Annual or municipal | varies by municipality |
| Non-resident imputed income tax | Annual | declared through Modelo 210; based on cadastral value |
| Community fees | Monthly / quarterly | depends on building, facilities and approved budget |
| Insurance & utilities | Annual / monthly | depends on use, size, pool/garden and energy consumption |
| Wealth / Solidarity Tax | Annual, if applicable | relevant mainly for high-net-worth buyers |
The cadastral value is an administrative value assigned to the property by the Spanish Cadastre. It is different from the market value or purchase price.
IBI is the annual municipal property tax. It is calculated on cadastral value, not market price. As a practical screening estimate, buyers often use around 0.25% of the purchase price per year, but the exact figure must be checked from the latest IBI receipt.
If the owner is not Spanish tax resident and the property is not rented, Spain can apply an annual non-resident property income tax.
This is often called imputed income tax. It is declared through Modelo 210, the Spanish tax form used by non-resident owners. The calculation is based on the cadastral value of the property, not the market price. As a practical screening estimate, buyers often use around 0.15% of the purchase price per year, but the exact amount must be calculated from the cadastral value and confirmed by a tax adviser.
Before buying, ask your lawyer or adviser to confirm:
- latest IBI receipt;
- waste charge / basura;
- cadastral reference;
- cadastral value;
- community fees;
- approved community budget;
- any special assessments or upcoming works;
- insurance estimate;
- non-resident tax estimate;
- whether Wealth Tax or Solidarity Tax could apply.
For villas, also budget separately for pool, garden, security, maintenance and empty-home monitoring. A villa can have a very different annual cost profile from an apartment in a simple community.
10. If the property will be rented
If the property will be rented, buyers should calculate net income after costs and taxes.
Rental income can be taxed differently depending on whether the owner is:
- Spanish tax resident;
- EU/EEA non-resident;
- non-EU/EEA non-resident.
The rental strategy also matters. Long-term rental, mid-term rental and tourist rental can have different tax, VAT, licensing, management and community-of-owners implications.
Before buying for rental income, buyers should check:
- whether tourist rental is legally possible;
- whether the community of owners allows it;
- whether local restrictions apply;
- expected occupancy;
- management fees;
- cleaning and maintenance costs;
- income tax;
- possible VAT implications;
- realistic net yield after all costs.
Gross yield is not enough. A property that looks profitable before costs can produce a very different result after tax, management, maintenance, vacancy and financing.
11. A note on future selling costs
Although this article focuses on buying costs, investors should also remember that selling a property in Spain can involve exit costs.
These may include:
- estate agency fees;
- lawyer or tax adviser fees;
- mortgage cancellation costs;
- capital gains tax;
- municipal plusvalía tax.
Plusvalía municipal is a local tax linked to the increase in value of urban land. It is separate from capital gains tax and should be checked with the town hall or the seller’s lawyer before selling.
If the seller is non-resident in Spain, the buyer normally withholds 3% of the sale price and pays it to the Spanish Tax Agency as an advance payment toward the seller’s possible capital gains tax.
This 3% withholding is not always the final tax. The non-resident seller normally declares the sale through Modelo 210. If the final tax is lower than the 3% withheld, or if there is no taxable gain, the seller may claim a full or partial refund. If the final tax is higher, the seller may need to pay the difference.
12. What your lawyer should check
Before signing a private purchase contract, your lawyer should check:
- Land Registry information;
- seller ownership;
- mortgages, charges or debts;
- community debts;
- latest IBI receipt and local tax receipts;
- cadastral information;
- cadastral reference and cadastral value;
- tax base and reference value;
- building licences and first occupation documentation, where relevant;
- community statutes and rules;
- urban planning situation;
- rental restrictions, if relevant;
- purchase contract terms;
- tax calculation;
- payment deadlines after completion.
A good legal review is especially important if the property is new-build, off-plan, rented, recently renovated, rural, tourist-use or part of a complex community structure.
Bottom line
When buying on the Costa Blanca, the safest approach is to calculate the full acquisition budget before making an offer.
As a practical guide:
- resale below €1M: budget around +11%;
- resale above €1M: budget around +13%;
- new-build: budget around +13.5%.
These estimates include the main purchase taxes, independent lawyer, notary, land registry and standard completion costs.
They do not include financing, furniture, renovation, rental setup or ongoing ownership expenses.
The advertised property price is only the starting point. The real buying budget should include purchase taxes, legal checks, completion costs and the first year of ownership expenses.
