When investing in Costa Blanca real estate, it’s essential to understand the full range of property taxes and transaction fees involved. Whether you are buying a second home, relocating to Spain, or investing in the property market, knowing the financial implications will help you budget accurately and avoid surprises.
At CC Lawyers Alicante, we guide international buyers step by step through the legal and tax process of acquiring property in Spain, particularly in the province of Alicante and the Costa Blanca area.
Property Taxes in Spain: Key Rates to Know
There are two main tax regimes depending on whether the property is new or a resale.
1. Property Transfer Tax (ITP) – Resale Properties
If you buy a second-hand property, you must pay the Impuesto sobre Transmisiones Patrimoniales (ITP). In the Comunidad Valenciana, this tax is 10% of the purchase price, applicable throughout the Costa Blanca, including Alicante, Torrevieja, Jávea, Altea or Benidorm.
This is one of the most common property taxes in Spain for foreign buyers acquiring existing homes.
2. VAT (IVA) + Stamp Duty (AJD) – New Build Properties
For newly built properties (from developers), instead of ITP, you pay:
- 10% VAT (IVA)
- 1.5% Stamp Duty (AJD) in the Valencian region
That’s a total of 11.5% on top of the declared property price. These rates may vary in other parts of Spain, such as Costa Brava real estate, where stamp duty can be slightly lower (around 1%).
Notary and Land Registry Fees
These are mandatory professional fees for executing and recording the Escritura Pública de Compraventa (public deed of sale).
- Notary fees: Usually range from 0.3% to 0.6%
- Land Registry fees: Similar scale, based on official property value
Your lawyer will calculate these amounts precisely and ensure the documentation complies with Spanish law.
Lawyer’s Fees
Legal support in Spain is essential for safe property transactions. At CC Lawyers, our fees are typically 1% of the purchase price + VAT, and we offer full support in English and French, including:
- Due diligence
- NIE application
- Tax planning
- Contract drafting
- Representation before notary and authorities
We work solely for you—not the seller or the agent—ensuring full independence and transparency.
Other Costs to Consider
In addition to property taxes in Spain, there are several other costs that buyers should budget for:
- Bank charges for issuing certified cheques (if required by notary)
- Translator services (mandatory in some notarial offices if you don’t speak Spanish)
- Utility setup and community registration
- Property valuation (if mortgage is involved)
All these expenses can amount to around 12%–14% of the purchase price, depending on the type of property and region.
Tax Obligations After Purchase
After buying a property in the Costa Blanca, owners are subject to annual taxes, such as:
- IBI (Impuesto sobre Bienes Inmuebles): local property tax, based on cadastral value
- Rubbish collection tax (basura): set by the local town hall
- Non-resident income tax: if you do not live permanently in Spain, you must file an annual tax return, even if you don’t rent out the property
Your lawyer or tax advisor will help you register with the Spanish Tax Office and ensure compliance.
Why Costa Blanca Is Still a Smart Choice
Compared to Costa Brava real estate, Costa Blanca offers more favourable tax rates, lower property prices, and high demand for vacation rentals. Towns like Alicante, Torrevieja, and Altea remain popular among international buyers, especially from the UK, France, Germany, and Scandinavia.
With over 300 days of sunshine a year, excellent infrastructure and healthcare, and a strong resale market, Costa Blanca real estate continues to attract smart investors and second-home buyers.
Get Personalised Legal Advice Before You Buy
At CC Lawyers Alicante, we ensure that your property purchase is legally secure and financially planned. We explain every tax, fee and cost involved before you sign anything—always in your language.
Request your free consultation today. Let our team of multilingual lawyers help you buy with confidence in Spain.
📞 +34 965 134 928
📧 info@alicante-abogados.es
Legal notice: This content is for informational purposes only and does not constitute personalized legal advice. For a thorough assessment of your specific case, we recommend requesting a consultation with our team of specialised lawyers.