One of the most frequent questions we receive from international clients is: “What are the total costs on top of the purchase price?” This article provides a full breakdown of costs when purchasing property on the Costa Blanca.
Transfer Tax (ITP) for Resale Properties
When buying a resale property in the Valencian Community, you pay ITP at a percentage of the price. This is the single largest cost. Tax rates can change — always verify at the time of purchase.
VAT and Stamp Duty for New Build Properties
New builds attract IVA (VAT) at 10% plus AJD (Stamp Duty) at 1.5%, totalling 11.5%. These rates are subject to change.
Notary Fees
Regulated by government tariff, typically 600 to 1,200 euros for a Costa Blanca property purchase.
Land Registry Fees
Also regulated, typically 400 to 800 euros depending on property value.
Legal Costs
Having an independent lawyer is essential. Your lawyer handles due diligence, contract review, tax payments, and registration. Costs vary by complexity.
Mortgage Costs (If Applicable)
Additional costs include bank valuation, mortgage deed notary fees, and arrangement fee. Since the 2019 reform, banks cover most mortgage costs.
Typical Cost Summary
Budget approximately 12-14% on top for resale, 13-15% for new build. On a 300,000 euro property, expect 36,000-42,000 euros additional for resale. These are estimates — your lawyer will provide a precise calculation.
Annual Running Costs
IBI (annual property tax) typically 400-1,500 euros/year. Non-residents must file Modelo 210 annually. Community fees, insurance, and utilities also apply.
Tax Considerations for Non-Residents
Non-resident owners must file annual tax returns even without rental income. EU/EEA residents benefit from lower rates. Tax legislation changes regularly — professional advice is strongly recommended.
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Disclaimer: This article is provided for general informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and regulations are subject to change and may vary depending on individual circumstances. No solicitor-client relationship is created by reading this article. For advice specific to your situation, please contact a qualified legal professional. Tomas Ballestero Lawyers accepts no liability for actions taken based on the information contained herein.
Want a full breakdown of your property buying costs? Our experienced property lawyers in Costa Blanca & Valencia offer a free initial consultation. Call +34 965 792 946.