Property Taxes Costa Blanca – What Buyers need to know. If you’re thinking of owning a place in the sun, or you have started your search, then you’ll already know that the Costa Blanca is one of the most attractive spots in Spain. But before you sign on the dotted line, it’s essential to understand the property taxes and associated fees involved in buying a home in this very popular region.
At Costa Blanca Sales, we guide buyers through every step of the process, including the often-overlooked topic of property taxes, so whether you’re purchasing a new build or a resale property, here’s what you need to know.
Transfer Tax (ITP) – For Resale Properties
When buying a resale property (one that’s been previously owned), the main tax you’ll pay is the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales – ITP).
This is typically 10% of the purchase price (raised to 11% if the property is over €1m) and it’s paid by the buyer after the signing of the purchase deed at the notary.
VAT & Stamp Duty – For New Build Properties
If you’re buying directly from a developer, a different set of taxes applies. Firstly there is the VAT which is 10% of the sales price and secondly there is the Stamp Duty which is currently around 1.5% for the valencian community.
Both of these are also paid by the buyer and both are due at the time of signing the deed.
Notary Fees
The cost of notarising the sale depends on the property price and complexity of the transaction. The typical cost is between €600-€1200 and is generally paid by the buyer unless agreed otherwise. The notary ensures the deed is legally valid and properly recorded with the Land Registry.
Land Registry Fees
After signing at the notary, the sale must be recorded at the Land Registry (Registro de la Propiedad). The Typical Cost is around €400 – €800, depending on the value of the property.
Legal Fees
Using a Spanish lawyer or solicitor is strongly advised to ensure the process runs smoothly and all due diligence is completed. It’s especially important to use one that speaks your language as well, so they can explain to you in full the process and the paperwork.
Typical legal fees are between 1-1.5% of the purchase price.
Other Considerations and Mortgages
If you are buying property with a mortgage then just like in your home country, additional fees will apply which includes a bank valuation and opening fees. Best to speak with your mortgage provider about these as they can change depending on who you use, and what you are buying.
You may also have utility and community fees if you buy on a resort for example.
As each resort will differ it’s best to know these fees as well, so there’s no hidden surprises once you’ve completed on the property.
Budget Considerations
As a rough guide for your property taxes Costa Blanca you should add an additional 12-14% on top of the purchase price. This should then cover all associated costs, depending on whether you buy a new build home or a re-sale property.
Need Help with the Costs or Ready to Start your Property Search?
Buying property in Spain is exciting, but the fine print can be daunting. That’s where we come in. At Costa Blanca Sales, we’ve helped hundreds of clients make smart, informed decisions – whether it’s understanding taxes or finding the perfect villa near the beach.
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