The Real Cost of Buying Property on the Costa Blanca (Beyond the Price Tag)

The Real Cost of Buying Property on the Costa Blanca (Beyond the Price Tag)

When international buyers start looking for property on the Costa Blanca, they usually focus on the purchase price. However, the real cost of buying in Spain goes beyond the advertised value of the property.

Understanding the full financial picture from the beginning is essential to avoid surprises and to plan the investment correctly. This guide explains the actual costs involved when purchasing property in the Valencian Community.

How Much Extra Should You Budget?

As a general rule, buyers should allow an additional 12%–14% of the purchase price to cover taxes and acquisition expenses. This percentage can vary slightly depending on whether the property is resale or new build, but planning within this range ensures a smooth transaction without last-minute financial stress.

Taxes When Buying a Resale Property

For resale properties in the Valencian Community, the main tax is:

Transfer Tax (ITP): 10% of the purchase price

This is the largest additional cost and must be paid within 30 days after signing the title deed. Unlike some countries, this tax is not included in the price and must be calculated separately.

Taxes When Buying a New Build Property

New build purchases are taxed differently:

VAT (IVA): 10%
Stamp Duty (AJD): 1.5%

Although the structure is different, the total tax burden is similar to resale purchases. The key difference lies in legal guarantees, construction stages, and payment structure.

Additional Purchase Costs Buyers Must Consider

Beyond taxes, there are several necessary administrative and legal costs.

Notary Fees
The notary formalises the title deed and ensures the legality of the transaction.

Land Registry Fees
Registration protects the buyer legally as the new owner.

Legal Fees
An independent lawyer carries out due diligence, verifies the property status, and protects the buyer’s interests throughout the process.

Administrative Costs
Handling tax payments, registrations, and documentation.

Sworn Translations (if required)
Essential for buyers who do not speak Spanish, ensuring full understanding of contracts.

Banking Costs
If funds are transferred internationally or a Spanish mortgage is arranged, additional charges may apply.

Example: Real Purchase Cost Calculation

Let’s consider a property with a purchase price of 300.000 €.

Property Price: 300.000 €
Transfer Tax (10%): 30.000 €
Legal & Administrative Costs: 3.500 € – 5.000 €
Notary & Registry: 1.200 € – 1.800 €

Total Estimated Investment: 336.000 € – 338.000 €

This is why buyers should never plan their purchase based solely on the asking price.

Ongoing Costs After Completion

Once the purchase is completed, ownership in Spain also involves regular expenses such as:

• Annual Property Tax (IBI)
• Community Fees (for apartments or urbanisations)
• Utilities and maintenance
• Non-resident income tax (if applicable)

These are generally moderate compared to other European countries, but they must be considered as part of the long-term investment.

The Most Common Financial Mistake International Buyers Make

The biggest mistake is arriving in Spain with funds calculated only for the property price, assuming the buying process works the same way as in their home country.

This often leads to:

• Delays at completion
• Unexpected transfers of additional funds
• Unnecessary stress during what should be an exciting purchase

Proper planning avoids all of this.

Why Transparent Cost Planning Is Essential

A secure property purchase on the Costa Blanca is not just about finding the right home — it is about understanding every legal and financial step before signing any document.

Working with professionals who regularly assist international buyers ensures:

• Accurate cost forecasting
• No hidden surprises
• A smooth and legally secure transaction

Final Thoughts

The Costa Blanca remains one of Europe’s most attractive destinations for property investment, whether for relocation, holiday use, or long-term value.

But a successful purchase begins with understanding the real cost of acquisition, not just the listing price. Buy well-informed, plan correctly, and the process becomes straightforward, safe, and rewarding.