Table of Contents
Introduction: Why Buy a Property in Torrevieja?
Torrevieja is one of the most popular coastal destinations for foreign buyers in Spain, offering a Mediterranean lifestyle, affordable property prices, and a thriving expat community. Whether you’re looking for a holiday home, retirement property, or a buy-to-let investment, Torrevieja provides an excellent mix of modern apartments, beachfront properties, and residential urbanizations with amenities.
- Affordable property prices compared to other parts of the Costa Blanca.
- Over 300 days of sunshine per year, ideal for year-round outdoor living.
- Vibrant expat community, particularly among British, Scandinavian, and Dutch buyers.
- Excellent beaches, including Playa del Cura, La Mata, and Los Locos.
- High rental demand, making it a good location for short- and long-term investment properties.
- Great amenities, with bars, restaurants, shopping centers, and healthcare facilities.
💡 Whether you’re looking for a permanent residence, a holiday home, or an investment property, Torrevieja has options to suit every budget and lifestyle.
Property Transfer Tax (ITP) or VAT (IVA) in Torrevieja
The tax you pay when purchasing a resale property or a new build in Torrevieja depends on several factors.
Property Transfer Tax (ITP) for Resale Properties
- ITP in Torrevieja (Comunidad Valenciana) is 10% of the property price or the official Valor de Referencia (whichever is higher).
- Applies to all pre-owned properties.
- Must be paid at the time of purchase.
Understanding ITP and the Valor de Referencia in Torrevieja
When purchasing a resale property in Torrevieja, Property Transfer Tax (ITP) is calculated based on the higher of these 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 even if you purchase a property for less than its government-assessed value, ITP may still be 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.
💡 Larger properties or those with mortgages may incur higher notary fees.
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 Torrevieja
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 Torrevieja
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 Torrevieja
What are the main property taxes in Torrevieja?
10% ITP on resale properties or 10% IVA + 1.5% AJD on new builds.
How long does it take to buy a property in Torrevieja?
On average, 1 to 3 months, depending on financing and legal checks.
Can I get a mortgage as a foreign buyer?
Yes, but banks typically require a 30–40% down payment, plus closing costs.
Do I need a Spanish bank account?
It’s not legally required but highly recommended for payments and tax purposes.
What happens if a property has unpaid debts?
In Spain, property debts transfer to the new owner—your lawyer will verify this before purchase.
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.
Ready to discuss your legal needs in Spain?
Contact Platinum Legal Spain for Property Purchase Assistance
💡 Buying a property in Torrevieja? Platinum Legal Spain provides expert legal assistance to ensure a smooth, secure purchase. Contact us today!
Where Are the Most Popular Areas for Foreign Buyers in Torrevieja?
Torrevieja offers a wide range of neighborhoods, each catering to different buyer preferences—from lively beach areas to quieter residential communities. Here are the most sought-after areas:
- Playa del Cura – One of the busiest and most central beachfront areas, perfect for those who want to be near bars, restaurants, and shops. Offers modern apartments with sea views.
- La Mata – A favorite for those seeking a more tranquil beach setting. La Mata features long sandy beaches, nature reserves, and a mix of townhouses, apartments, and villas.
- Los Locos – A lively beachfront area with high rental demand, offering affordable apartments and penthouses.
- Aguas Nuevas – A modern residential area with gated urbanizations, private villas, and apartment complexes with pools. Popular among families and retirees.
- Los Balcones – A well-established expat area, offering spacious villas, townhouses, and detached properties with larger plots. Close to the Torrevieja salt lakes and hospitals.
- Punta Prima – Located on the border between Torrevieja and Orihuela Costa, Punta Prima is a prestigious beachside area with modern apartments and luxury villas.
- La Siesta & El Chaparral – A peaceful residential area known for its detached villas and bungalows, situated near the famous Torrevieja salt lakes.
- Torretas – A budget-friendly area with a mix of traditional Spanish townhouses and modern urbanizations.
- San Luis – A quiet residential area surrounded by nature, perfect for retirees looking for affordable detached homes in a tranquil setting.
- Mar Azul – A seaside urbanization close to Punta Prima, offering luxury villas, beachfront apartments, and premium developments.
- Los Altos – A newer development area with modern properties, private communities, and easy access to golf resorts and beaches.
💡 Torrevieja’s neighborhoods provide options for every buyer, from lively beachfront locations to peaceful residential communities.