Table of Contents
Introduction: Why Buy a Property in Alicante?
Alicante is a vibrant coastal city known for its sunny climate, stunning beaches, and strong expat community. Whether you’re looking for a holiday home, investment property, or a place to retire, Alicante offers a mix of affordability, high rental demand, and lifestyle benefits.
- Great transport connections – International airport, high-speed train links to Madrid & Barcelona.
- Affordable property prices – Compared to Madrid or Barcelona, Alicante offers competitive prices.
- Strong property market with high demand from international clients.
- Mediterranean climate with over 320 days of sunshine per year.
- Thriving expat community – Popular among British, Dutch, German, and Scandinavian buyers.
- Strong rental market – A favorite destination for long-term residents and holiday rentals.
💡 Understanding the full costs, taxes, and legal requirements of buying a property in Alicante is crucial to avoiding unexpected expenses.
Where Are the Most Popular Areas for Foreign Buyers in Alicante?
Alicante offers a variety of locations to suit different lifestyles, from lively beachfront cities to quiet rural escapes. Expats and international buyers are drawn to coastal resorts, historic inland towns, and golf communities.
- Popular coastal towns like Benidorm, Altea, and Torrevieja attract those seeking beachside living and high rental demand.
- Inland towns such as Pinoso, Villena, and Jalón Valley are perfect for those looking for traditional Spanish charm and space to enjoy nature.
- Golf resorts including Las Colinas, La Finca, and Villamartín are ideal for those wanting exclusive gated communities with top-tier amenities.
💡 Below is a detailed list of the best places to buy property in Alicante, whether you’re looking for a holiday home, investment property, or permanent residence.
Property Transfer Tax (ITP) or VAT (IVA) in Alicante
The tax you pay when purchasing property in Alicante depends on whether you are buying a new build or a resale property.
ITP (Property transfer tax) for Resale Properties in Alicante
- ITP in Alicante (Comunidad Valenciana) is 10% of the property price or the official Valor de Referencia (whichever is higher).
- Must be paid when signing the title deed at the notary.
💡 Even if you negotiate a lower purchase price, you may still be taxed on a higher government-assessed value.
Understanding ITP and the Valor de Referencia in Alicante
When purchasing a resale property in Alicante, Property Transfer Tax (ITP) is based on the higher of two values:
1️⃣ The declared purchase price in the escritura (title deed)
2️⃣ The official “Valor de Referencia” set by the Spanish Tax Agency (Catastro value)
💡 This means that if the government estimates the property’s value to be higher than your purchase price, ITP is calculated on the higher amount.
How Is the Valor de Referencia Calculated?
The Valor de Referencia is determined by the Spanish government using:
- Recent property sales in the area
- Location of the property
- Size of the property
💡 You can check the official Valor de Referencia before purchasing to avoid unexpected tax increases.
Example Calculation for ITP Based on Valor de Referencia
📌 Example 1: Declared price is €180,000, but Valor de Referencia is €200,000.
- ITP is calculated on €200,000 × 10% = €20,000
📌 Example 2: Declared price is €250,000, and Valor de Referencia is €230,000.
- ITP is calculated on €250,000 × 10% = €25,000
💡 Your lawyer can check the official Valor de Referencia before you buy, so you’re not caught by surprise with a higher tax bill.
IVA (VAT) and Stamp Duty (AJD) for New Build Properties
- IVA (VAT) for new builds is 10% of the property price.
- AJD (Stamp Duty) is 1.5%, payable on all newly built properties.
💡 Example Calculation for a New Build:
- Property price: €250,000
- IVA (10%) = €25,000
- AJD (1.5%) = €3,750
- Total Tax Cost = €28,750
Notary and Land Registry Fees
To legally register the property, you’ll need to pay notary and land registry fees.
- Notary Fees: Typically range from €800 to €3,000, depending on the property price.
- Land Registry Fees: Generally between €500 and €2,500.
💡 Fees vary depending on the purchase price and mortgage registration.
Legal Fees & Due Diligence Costs
Hiring a lawyer for your property purchase ensures the transaction is legally secure. At Platinum Legal Spain, we handle all legal aspects of the purchase, including:
- Title deed & land registry checks – Ensuring the property is free of debts or legal issues.
- Contract drafting & review – Protecting your rights before signing.
- NIE number application – Essential for foreign buyers.
- Power of Attorney – If you need someone to complete the purchase on your behalf.
💡 Legal fees typically range from 1.25% to 1.5% of the purchase price, with a minimum fee.
Additional Costs to Consider
- Utility Setup Fees – €200–€500 for new electricity and water connections.
- Home Insurance – €200–€500 per year (strongly recommended).
- Community Fees – Varies based on location, typically €50–€300 per month.
Step-by-Step Guide to Buying a Property in Alicante
1️⃣ Find a Property
• Work with reputable real estate agents and legal professionals.
• Consider location, budget, and investment potential.
2️⃣ Reserve the Property
• Pay a reservation deposit (usually €3,000–€6,000).
• Sign a preliminary contract (Contrato de reserva / oferta).
3️⃣ Legal Due Diligence
• Your lawyer verifies ownership, debts, planning permissions, and legal status.
• Obtain an NIE number (Foreigner Identification Number).
4️⃣ Sign the Purchase Agreement
• Pay 10% of the property price as a deposit (for resale properties).
• Finalise financing (if applicable).
5️⃣ Notary & Completion
• Sign the Escritura (Title Deed) before a notary.
• Pay Property Transfer Tax (ITP) or VAT (IVA) + Stamp Duty (AJD).
6️⃣ Register the Property
• The lawyer registers the property in your name at the Land Registry.
• Arrange utilities contracts, alarms and property insurance.
Why You Should Seek Legal Advice Before Buying a Property in Alicante
At Platinum Legal Spain, we:
- Ensure no legal surprises (debts, zoning issues, unpaid taxes).
- Handle all legal paperwork from contracts to tax filings.
- Protect your investment by verifying all legal aspects before you buy.
💡 Hiring an independent lawyer is the best way to guarantee a stress-free purchase.
Why Our Clients Trust Us
Proven Track Record
Successfully handling legal matters for hundreds of clients across Murcia, Alicante, Comunidad Valenciana, Almeria, and Andalucia each year.
Tailored Legal Solutions
Personalised advice that fits your specific situation, whether you’re an expat, investor, or resident.
Clear Communication
Legal advice delivered in your language: English, Spanish, French, or with translation in Dutch, Swedish, and German—no misunderstandings, just clarity.
FAQs on Property Purchase Costs in Alicante
What taxes do I need to pay when buying a property in Alicante?
- Resale properties: You must pay 10% Property Transfer Tax (ITP) on the higher value between the purchase price and the Valor de Referencia.
- New build properties: You must pay 10% VAT (IVA) + 1.5% Stamp Duty (AJD).
What is the Valor de Referencia, and how does it affect my tax payments?
- The Valor de Referencia is the official market value assigned by the Spanish Tax Agency based on property sales in the area.
- If the Valor de Referencia is higher than your purchase price, you must pay ITP based on the higher amount.
- If your purchase price is higher than the Valor de Referencia, ITP is calculated on the actual purchase price.
💡 Checking the Valor de Referencia before purchasing can help avoid unexpected tax costs.
How much are the legal fees when buying a house in Alicante?
- Legal fees typically range between 1% and 1.5% of the purchase price.
- This includes property checks, contract reviews, NIE application assistance, and tax guidance.
💡 Hiring a lawyer ensures your peace of mind and that your purchase is legally secure and free of debts.
Do I need a Spanish bank account to buy a property in Alicante?
- While not legally required, a Spanish bank account is strongly recommended for making payments, setting up utilities, and paying local taxes.
- Some Spanish banks may require proof of funds and an NIE (Foreigner Identification Number) to open an account.
How long does the property purchase process take in Alicante?
- The process usually takes 1 to 3 months, depending on whether you need a mortgage and the complexity of the legal checks.
- If you are a cash buyer and all documents are in order, the process can be completed in as little as 4–6 weeks.
Can foreigners buy property in Alicante?
- Yes! Spain has no restrictions on foreign property ownership.
- You will need an NIE (Número de Identificación de Extranjero), which a lawyer can help you obtain.
Can I get a mortgage in Spain as a non-resident?
- Yes, but Spanish banks usually require a 30–40% deposit for non-residents.
- Interest rates vary depending on the bank, but fixed-rate and variable-rate mortgages are available.
- Some banks may require proof of income and tax returns from your home country.
What happens if a property in Alicante has unpaid debts?
- In Spain, property debts transfer to the new owner, including unpaid taxes, community fees, and mortgages.
- Your lawyer will conduct due diligence to ensure there are no outstanding debts before you complete the purchase.
💡 Always work with a legal expert to verify a property’s financial status before buying.
What are the additional costs after buying a house in Alicante?
- IBI (Property Tax) – Annual local tax based on property value.
- Community Fees – Monthly or annual fees for shared facilities in apartment buildings or gated communities.
- Home Insurance – Recommended for property protection.
Do I need a lawyer when buying a property in Alicante?
Oficially no! But your lawyer ensures:
- The property is legally registered and free of debts.
- All contracts protect your interests.
- Taxes are correctly calculated and paid.
Platinum Legal Spain provides expert legal guidance throughout the entire process.
💡 Working with an independent lawyer is essential to avoid costly mistakes when buying property in Alicante.
Disclaimer
This guide is for general information only. Property laws and tax rates change, so we recommend consulting a legal expert before purchasing property in Spain.
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Inland Towns in Alicante – Traditional Spanish Living with Modern Comforts
Alicante’s inland towns offer a blend of traditional Spanish charm, affordability, and natural beauty. Many expats choose these areas for larger properties, peaceful surroundings, and easy access to both the coast and the mountains.
- Pinoso – A picturesque inland town famous for its vineyards, olive groves, and relaxed countryside lifestyle. Ideal for those looking for spacious villas with large plots of land.
- Villena – A historic town with a medieval castle, great infrastructure, and a thriving local wine industry. Offers a mix of affordable townhouses and countryside fincas.
- Jalón Valley (Vall de Pop) – One of the most scenic inland areas of Alicante, renowned for its almond groves, local wine, and stunning mountain views. A haven for nature lovers.
- Alcoy – A medium-sized historic city with a strong cultural scene, famous for its Moors and Christians Festival. It provides modern amenities with a traditional feel.
- Castalla – A charming mountain town with a 12th-century castle, offering a mix of modern urbanizations and traditional village homes.
- Hondon de las Nieves & Hondon de los Frailes – Twin villages favored by retirees for their peaceful environment and affordability. Offer country villas and small-town community living.
- Sax – A hidden gem with a stunning castle, excellent transport links, and bargain property prices. Offers a mix of Spanish townhouses and country villas.
- Monóvar – A small town famous for its local wines and rural tourism. Ideal for those looking for spacious homes with scenic countryside views.
- Elda & Petrer – Neighboring towns known for their shoe-making industry, modern amenities, and affordable housing market.
- Benissa – Located inland but close to the coast, Benissa is popular among expats looking for larger villas with panoramic mountain and sea views.
💡 These inland towns offer an affordable alternative to coastal living, with spacious properties, a quieter lifestyle, and access to Alicante’s natural beauty.
Coastal Towns in Alicante – Beachfront Living on the Costa Blanca
Alicante’s coastal towns attract foreign buyers looking for seaside living, holiday homes, and high rental potential. The region offers golden beaches, a warm climate, and a mix of lively and quiet seaside destinations.
- Benidorm – One of Spain’s most famous coastal cities, ideal for short-term rental investments. Offers high-rise beachfront apartments, luxury penthouses, and a bustling international community.
- Altea – A picturesque town with an artistic community, whitewashed buildings, and luxury hillside villas overlooking the sea.
- Torrevieja – One of the top choices for British and European expats, with affordable apartments, vibrant nightlife, and strong rental demand.
- Villajoyosa – Known for its colorful seafront houses and laid-back atmosphere. Offers a mix of traditional townhouses and modern apartments.
- Guardamar del Segura – A tranquil beach town with a nature reserve, sand dunes, and a long coastline. Offers a balance of modern amenities and a relaxed environment.
- Denia – A cosmopolitan coastal city with a large marina, historical landmarks, and ferry connections to Ibiza and Mallorca. Offers exclusive properties and a luxury feel.
- Javea (Xàbia) – A premium location popular among British and Dutch buyers, known for its turquoise coves, luxury villas, and scenic hiking trails.
- Santa Pola – A family-friendly town with a historic fortress, great beaches, and affordable properties.
- Calpe – Famous for the iconic Peñón de Ifach rock, Calpe is known for modern high-rise apartments, luxury villas, and strong tourism demand.
- El Campello – A coastal town close to Alicante city, offering a mix of modern apartments and beachfront villas.
- La Marina – A popular retirement destination, offering affordable properties and proximity to both the beach and nature reserves.
- San Juan Playa – A prestigious beach district of Alicante, known for its high-end apartments and long sandy beaches.
💡 Alicante’s coastal towns provide diverse opportunities, from luxury seaside properties to budget-friendly apartments perfect for rental income.
Golf Resorts in Alicante – Exclusive Communities for Golf & Leisure
Alicante is home to some of Spain’s finest golf resorts, attracting buyers looking for secure gated communities, premium amenities, and luxury homes.
- Las Colinas Golf & Country Club – A prestigious golf community with high-end villas and apartments. Features a championship golf course, natural surroundings, and luxury lifestyle amenities.
- La Finca Golf Resort – One of the most popular golf communities in the region, offering spacious villas, townhouses, and apartments, plus an on-site 5-star hotel and spa.
- Villamartín Golf – A well-established resort near Torrevieja, offering affordable apartments and townhouses in a thriving expat community.
- Alicante Golf – A city-based golf resort near San Juan Beach, offering luxury homes with golf course views while being close to beaches, international schools, and city life.
- Bonalba Golf Resort – A great choice for those looking for affordable golf properties, featuring villas, townhouses, and apartments in a relaxed environment.
- Campoamor Golf Resort – Located in Orihuela Costa, this resort is perfect for golf lovers who want to be close to the beach. Offers high-end villas, apartments, and proximity to other golf courses.
- Las Ramblas Golf – A stunning golf resort built into a natural ravine, offering modern properties with unique views and high rental potential.
- Font del Llop Golf Resort – A tranquil, nature-focused golf resort, offering modern villas and apartments with a strong emphasis on sustainability.
- Alenda Golf Resort – A gated golf community near Alicante city, popular among families and professionals looking for a quiet lifestyle with easy access to the city.
- La Sella Golf Resort – A high-end golf destination near Denia and Javea, featuring luxury apartments, townhouses, and villas with excellent golf and spa facilities.
💡 Golf resorts in Alicante provide a premium lifestyle with secure communities, high-end properties, and easy access to both leisure and city conveniences.