Table of Contents
Introduction: Why Buy a Property in The Costa Blanca?
Costa Blanca is one of the most sought-after regions for foreign property buyers, offering stunning Mediterranean coastlines, picturesque inland towns, and a wide range of real estate options. Whether you’re looking for a beachfront apartment, a luxury villa, a golf resort home, or a quiet countryside retreat, Costa Blanca has something to suit every buyer.
- Diverse property options, from budget-friendly apartments to high-end luxury villas.
- Mild Mediterranean climate, with over 320 days of sunshine per year.
- Well-connected international airports in Alicante and Valencia, providing easy access to Europe and beyond.
- Large expat community, with British, Scandinavian, Dutch, French, and German buyers choosing the region for relocation or investment.
- Thriving rental market, particularly in tourist hotspots like Benidorm, Javea, Torrevieja, and Altea.
- World-class golf courses, marinas, and outdoor activities for year-round enjoyment.
- Expansive coastline – Over 200 km of beaches, coves, and seaside towns.
- Affordable property prices – Lower than Madrid or Barcelona but with high rental demand.
- Excellent transport links – Alicante-Elche Airport connects the region to major European cities.
💡 Whether you are searching for a holiday home, retirement retreat, or investment property, Costa Blanca offers unbeatable opportunities.
Where Are the Most Popular Areas for Foreign Buyers in Costa Blanca?
Costa Blanca is a diverse region with a mix of coastal cities, charming beach towns, golf resorts, and inland villages. Here are the top areas that attract international property buyers.
- Coastal towns – Ideal for beach lovers and investors looking for strong rental returns.
- Golf resorts – Secure gated communities offering luxury homes with premium amenities.
- Inland towns – Traditional Spanish charm with affordable countryside properties.
💡 Below is a detailed breakdown of the most popular locations in Costa Blanca.
Property Transfer Tax (ITP) or VAT (IVA) in The Costa Blanca
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 The Costa Blanca
- ITP in The Costa Blanca (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 The Costa Blanca
When purchasing a resale property in The Costa Blanca, 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 The Costa Blanca
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 The Costa Blanca
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 The Costa Blanca
What taxes do I need to pay when buying a property in The Costa Blanca?
- 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 The Costa Blanca?
- Legal fees typically range between 1.25% 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 The Costa Blanca?
- 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 The Costa Blanca?
- 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 The Costa Blanca?
- 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 The Costa Blanca 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 The Costa Blanca?
- 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 The Costa Blanca?
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 Costa Blanca – Traditional Spanish Living with Modern Comforts
Costa Blanca’s inland towns provide a peaceful and scenic lifestyle, perfect for those seeking larger homes, vineyard estates, and a slower pace of life.
- Pinoso – A beautiful countryside town famous for its wine production, offering spacious villas and rural fincas with land.
- Jalón Valley (Vall de Pop) – A scenic inland area known for its rolling hills, vineyards, and charming whitewashed villages.
- Alcoy – A historic inland city with modern amenities, a thriving cultural scene, and affordable townhouses.
- Castalla – A traditional Spanish town with a castle, great hiking trails, and a mix of modern and rustic homes.
- Sax – A lesser-known but highly attractive inland location with a stunning castle, strong expat community, and affordable housing.
- Monóvar – A town rich in history, gastronomy, and beautiful countryside properties, ideal for buyers looking for traditional Spanish living.
- Elda & Petrer – Neighboring towns known for their shoe-making industry, modern infrastructure, and a mix of city apartments and country homes.
- Hondón de las Nieves & Hondón de los Frailes – A favorite among retirees and expats looking for quiet villages with affordable villas and orchards.
💡 Costa Blanca’s inland towns provide an authentic Spanish experience with lower property prices than coastal areas.
Coastal Towns in Costa Blanca – Beachfront Living with High Investment Potential
Costa Blanca’s coastal towns offer some of the best beachfront properties in Spain, attracting expats, retirees, and investors looking for a mix of modern luxury and Mediterranean charm.
- Benidorm – A world-famous destination with luxury high-rise apartments, beachfront penthouses, and a buzzing nightlife.
- Altea – A picturesque and artistic town, known for luxury villas, an old town with whitewashed buildings, and panoramic sea views.
- Torrevieja – One of the most popular areas for British and European expats, offering affordable apartments, a vibrant social scene, and high rental demand.
- Denia – A cosmopolitan coastal city with a large marina, luxury real estate, and ferry connections to Ibiza and Mallorca.
- Javea (Xàbia) – One of the most exclusive areas in Costa Blanca, offering seafront villas, modern apartments, and an active expat community.
- Villajoyosa – A charming fishing town with colorful seafront houses, quiet beaches, and excellent seafood restaurants.
- Guardamar del Segura – A family-friendly town with sandy beaches, a natural park, and a mix of modern apartments and beachfront villas.
- Calpe – Famous for its iconic Peñón de Ifach rock, high-rise apartments, and strong holiday rental market.
- El Campello – A popular seaside town close to Alicante, offering a mix of modern developments and traditional homes.
- Santa Pola – A lively coastal town with a historic fortress, beautiful beaches, and an active marina.
💡 Costa Blanca’s coastal towns provide excellent opportunities for both permanent residence and investment properties.
Golf Resorts in Costa Blanca – Exclusive Communities for Golf & Leisure
Costa Blanca is home to some of Spain’s most prestigious golf resorts, offering luxury villas, townhouses, and apartments in secure gated communities with premium amenities.
- Las Colinas Golf & Country Club – One of Spain’s top-rated golf resorts, featuring luxury homes and a natural park setting.
- La Finca Golf Resort – A popular golf resort near Torrevieja, offering modern villas, apartments, and a 5-star hotel with a spa.
- Villamartín Golf – A well-established golf community known for its affordable homes, social scene, and proximity to Orihuela Costa beaches.
- Alicante Golf – A city-based golf resort near San Juan Playa, featuring luxury properties with golf course views.
- Bonalba Golf Resort – An affordable golf resort near Alicante, with a mix of modern townhouses, apartments, and detached villas.
- Campoamor Golf Resort – A highly sought-after resort in Orihuela Costa, known for prestigious homes and proximity to the beach.
- Las Ramblas Golf – A scenic golf resort surrounded by pine forests, featuring modern properties with unique designs.
- La Sella Golf Resort – A luxury golf resort near Denia, featuring high-end villas and townhouses with spectacular views.
💡 Costa Blanca’s golf resorts are perfect for those looking for an active lifestyle, secure living, and high-end properties.