Buying Property in Spain: Taxes & Costs Guide (Costa Blanca 2026)
Buying property in Spain costs roughly 10–13% on top of the purchase price in taxes and fees. On the Costa Blanca (Comunidad Valenciana) a resale home pays Transfer Tax (ITP) at a general 9% — 11% on the entire value when the property exceeds €1,000,000, in force for accruals from 1 June 2026 under Ley 5/2025 GVA — while a new-build pays 10% VAT (IVA) plus Stamp Duty (AJD) at 0.1% for a habitual residence or 1.4% in all other cases (the usual rate for a non-resident buyer) — the two regimes are mutually exclusive. You also budget for notary, land registry and gestoría fees, you need an NIE before you can sign, and if you are a non-resident you will have an ongoing IRNR (modelo 210) obligation every year after completion. This guide explains each cost so foreign buyers in Torrevieja, Orihuela Costa and the wider Alicante province know exactly what they will pay.
Quick answer
Buying property in Spain costs roughly 10–13% of the price in taxes and fees. In the Comunidad Valenciana a resale home pays Transfer Tax (ITP) at 9% (11% on the whole price when it exceeds €1,000,000; accruals from 1 June 2026, Ley 5/2025 GVA), with reduced rates only in narrow cases, while a new-build pays 10% VAT plus Stamp Duty (AJD) at 0.1% if it will be your habitual residence or 1.4% otherwise — the usual case for a non-resident buyer. Add notary €600–€1,000, registry €400–€700 and an NIE.
Reviewed by
Valery Grinkevich
Licensed economist · tax adviser · 20+ years of experience · Torrevieja, Costa Blanca
Key takeaways
- Budget roughly 10–13% of the purchase price for taxes and fees on top of the price itself.
- A resale home pays Transfer Tax (ITP) at a general 9% in the Comunidad Valenciana (11% on the entire value when it exceeds €1,000,000, for accruals from 1 June 2026); reduced rates apply only in narrow cases.
- A new-build pays 10% VAT (IVA) plus Stamp Duty (AJD) at 0.1% for a habitual residence or 1.4% otherwise — VAT and ITP are mutually exclusive, never both.
- You need an NIE before you can sign the deed or pay any purchase tax in Spain.
- Non-EU buyers (including UK citizens post-Brexit) must appoint a tax representative in Spain.
- After buying, non-residents file the annual IRNR (modelo 210) every year — taxed at 19% (EU/EEA) or 24% (non-EU).
On this page
- How much does it cost to buy property in Spain?
- ITP on resale homes in the Comunidad Valenciana
- New-build property: VAT (IVA 10%) and Stamp Duty (AJD 0.1% or 1.4%)
- NIE, bank account and tax representative
- Plusvalía municipal, notary, registry and gestoría fees
- After you buy: the annual IRNR (modelo 210) obligation
- Frequently asked questions
How much does it cost to buy property in Spain?
Plan for an extra 10–13% of the purchase price in taxes and transaction costs when you buy property in Spain. The single largest item is the purchase tax — either Transfer Tax (ITP) on a resale home or VAT plus Stamp Duty on a new-build — followed by notary, land registry and professional fees.
On the Costa Blanca a typical resale purchase breaks down as: ITP at 9% of the declared price, notary fees of roughly €600–€1,000, land registry of roughly €400–€700, and gestoría (administrative processing) fees of a few hundred euros. A new-build instead carries 10% VAT and Stamp Duty (AJD) at 0.1% or 1.4% depending on whether it will be your habitual residence.
These percentages are paid by the buyer. The seller separately pays the plusvalía municipal and, where applicable, capital gains tax. Because rates differ by autonomous community, the Comunidad Valenciana figures below are specific to Alicante province and do not apply in Madrid, Andalucía or Catalonia.
ITP on resale homes in the Comunidad Valenciana
ITP (Impuesto sobre Transmisiones Patrimoniales) is the transfer tax you pay when buying a second-hand (resale) home, and in the Comunidad Valenciana the general rate is 9% of the purchase price for accruals from 1 June 2026 (Ley 5/2025 GVA); when the value exceeds €1,000,000 the rate is 11% on the entire value, not just on the excess (art. 13.Uno Ley 13/1997). This is the tax that applies to most Costa Blanca purchases, since the majority of homes sold in Torrevieja, Orihuela Costa and Guardamar are resales rather than new construction.
Reduced ITP rates apply in specific, narrowly defined cases set by Valencian regional law — 6% (8% above €180,000) for under-35 buyers of a first habitual residence and general-regime VPO, and 3% (4% above €180,000) for large or single-parent families, buyers with a qualifying disability, victims of gender violence and special-regime VPO. Eligibility conditions are strict and change periodically, so confirm your case against current Generalitat Valenciana rules before assuming the reduced rate.
ITP is self-assessed and filed (historically via modelo 600) within 30 working days of signing the deed. The taxable base is generally the higher of the declared price or the reference value (valor de referencia) published by the Catastro, which means the tax authority can challenge an unusually low declared price.
New-build property: VAT (IVA 10%) and Stamp Duty (AJD 0.1% or 1.4%)
New-build homes in Spain are taxed with VAT (IVA) instead of ITP, and on a residential new-build the VAT rate is 10%. Because VAT and ITP are mutually exclusive, you never pay both on the same purchase: a brand-new property bought from a developer carries VAT, while a resale carries ITP.
On top of VAT, a new-build triggers Stamp Duty — Actos Jurídicos Documentados (AJD) — on the purchase deed. In the Comunidad Valenciana (art. 14 Ley 13/1997, as amended by Ley 5/2025 for accruals from 1 June 2026) the rate is 0.1% when the home will be the buyer’s habitual residence, as defined in the Spanish IRPF rules, and 1.4% in all other cases. A non-resident buying a holiday home, a rental or an investment does not meet that definition, so the typical rate for foreign buyers on the Costa Blanca is 1.4% — a new-build then effectively costs 10% VAT + AJD at 1.4% in purchase taxes (about 10.1% if you will genuinely live in it as your main home), higher than the headline 9% ITP on a resale.
Note that since 2018 the AJD on the mortgage deed itself is paid by the lender, not the borrower — in the Comunidad Valenciana it is 2% when the lender is the taxable person (art. 14.Tres Ley 13/1997) — but the AJD on the property deed for a new-build remains a buyer cost. Plots of land and commercial premises can attract 21% VAT, so always confirm the asset type before budgeting.
Watch out
Resale (ITP) and new-build (VAT + AJD) are mutually exclusive regimes — you never pay both on the same purchase. Confirm whether the seller is a developer (new-build, VAT) or a private owner (resale, ITP) before you budget, because it changes the tax base and which form you file.
NIE, bank account and tax representative
You need an NIE (Número de Identidad de Extranjero) before you can sign a property deed in Spain, because the NIE is the tax identification number that links you to every tax filing connected to the property. There is no legal way to complete a purchase or pay ITP without one.
Most buyers also open a Spanish bank account to pay the deposit, the balance at the notary, and recurring costs such as IBI, utilities and community fees by direct debit. A Spanish IBAN is not strictly mandatory but in practice makes completion and ongoing ownership far smoother.
Non-EU buyers (for example UK citizens post-Brexit, or buyers from outside the EEA) are required to appoint a tax representative in Spain — a resident who acts as the point of contact with the Agencia Tributaria for non-resident tax matters. This is closely tied to the annual IRNR obligation and is one of the services foreign owners on the Costa Blanca most commonly need.
Tip
Sort the NIE early — applications can take weeks, and you cannot sign or pay ITP without it. If you are buying remotely, granting a power of attorney to your gestoría or tax representative lets them apply for the NIE, complete the deed and settle the taxes on your behalf without you flying over twice.
Plusvalía municipal, notary, registry and gestoría fees
Plusvalía municipal is a local council tax on the increase in land value, and it is normally paid by the seller, not the buyer. It is set by each municipality (Torrevieja, Orihuela, Alicante and others each have their own ordinance) and is calculated on the cadastral land value and the years of ownership. Buyers should still confirm in the contract who settles it, because liability can be negotiated.
Notary fees are regulated by a national tariff and typically run €600–€1,000 for a residential deed, scaling with the price. Land registry (Registro de la Propiedad) fees to inscribe your ownership usually run €400–€700.
Gestoría fees cover the administrative processing — settling ITP/AJD, lodging the deed at the registry, and obtaining the nota simple. These are not a tax but a professional service; budgeting a few hundred euros is realistic. Using a gestoría that understands Costa Blanca municipal procedures avoids costly filing errors.
After you buy: the annual IRNR (modelo 210) obligation
After buying, non-residents who own property in Spain must file the IRNR (Impuesto sobre la Renta de no Residentes) using modelo 210 every year. This is an annual obligation that begins once you own the property, separate from the one-off purchase taxes, and it applies whether or not you rent the home out.
If the property is for your own use (not rented), you pay tax on an imputed income calculated from the cadastral value — broadly 1.1% or 2% of that value depending on whether the cadastral value has been revised, taxed at 19% for EU/EEA residents or 24% for non-EU residents such as UK owners. The 19%/24% split is set by the IRNR rules at AEAT.
If you rent the property out, you instead declare the rental income on modelo 210, with EU/EEA residents able to deduct expenses and non-EU residents generally taxed on gross income. Missing these filings leads to surcharges and interest, which is why most foreign owners delegate the annual modelo 210 to a tax representative.
| Tax | Resale home | New-build |
|---|---|---|
| ITP (Transfer Tax) | 9% (11% on the full value above €1M; reduced cases 6%/3%) | Not applicable |
| VAT (IVA) | Not applicable | 10% |
| AJD (Stamp Duty) | Not applicable | 0.1% habitual residence · 1.4% other cases |
| Effective purchase tax | ~9% | ~10.1% habitual residence · ~11.4% other cases |
| Concept | Typical amount |
|---|---|
| ITP (Transfer Tax) | 9% of price |
| Notary fees | €600–€1,000 |
| Land registry | €400–€700 |
| Gestoría / legal | A few hundred euros |
FAQ
Frequently asked questions
How much tax do I pay buying a house in Spain?
You typically pay around 10–13% of the purchase price in taxes and fees. On a Costa Blanca resale that is mainly ITP at 9%, plus notary, land registry and gestoría fees; on a new-build it is 10% VAT plus Stamp Duty (AJD) at 0.1% for a habitual residence or 1.4% otherwise (the usual case for non-residents).
What is ITP in the Comunidad Valenciana?
ITP in the Comunidad Valenciana is the Transfer Tax on resale homes, charged at a general rate of 9% of the purchase price for accruals from 1 June 2026 (Ley 5/2025 GVA), and 11% on the entire value when the property exceeds €1,000,000. Reduced rates (6% or 3% up to €180,000) apply only in specific cases defined by Valencian regional law, such as certain habitual-residence or protected-category purchases.
Do I need a NIE to buy property in Spain?
Yes, you need an NIE before you can sign the property deed in Spain. The NIE is your foreigner tax identification number and is required to pay purchase taxes and register ownership; a purchase cannot legally complete without it.
Do new-builds pay ITP or VAT in Spain?
New-builds pay VAT (IVA), not ITP. A residential new-build carries 10% VAT plus Stamp Duty (AJD) at 0.1% if it is your habitual residence or 1.4% otherwise in the Comunidad Valenciana, whereas a resale home pays ITP instead — the two regimes are mutually exclusive.
Who pays the plusvalía municipal when buying in Spain?
The seller normally pays the plusvalía municipal, a local tax on the increase in land value. The exact amount is set by each municipality (Torrevieja, Orihuela and others have their own rules), and liability can be negotiated in the contract.
Do non-EU buyers need a tax representative in Spain?
Yes, non-EU buyers (including UK citizens post-Brexit) are required to appoint a tax representative in Spain for non-resident tax matters. The representative is the point of contact with the Agencia Tributaria and handles the annual IRNR obligation.
What taxes does a non-resident pay after buying property in Spain?
Non-residents must file the annual IRNR using modelo 210 every year after buying. For own-use property you pay tax on an imputed income (broadly 1.1% or 2% of the cadastral value) at 19% for EU/EEA residents or 24% for non-EU residents.
How much are notary and registry fees when buying in Spain?
Notary fees typically run €600–€1,000 and land registry fees €400–€700 for a residential purchase, scaling with the price. Gestoría fees for administrative processing add a few hundred euros more.
Can a British citizen still buy property in Spain after Brexit?
Yes, British citizens can still buy property in Spain after Brexit. The purchase taxes are the same, but as non-EU owners they are taxed at 24% on IRNR imputed income (versus 19% for EU/EEA residents) and must appoint a tax representative.
Sources
- Generalitat Valenciana, Tributos y Juego — ITP and AJD in the Comunidad Valenciana
- BOE — Ley 13/1997 de la Generalitat Valenciana (art. 13 ITP rates, art. 14 AJD rates; consolidated text incl. Ley 5/2025)
- Agencia Tributaria (AEAT) — Non-Resident Income Tax (IRNR), modelo 210
- Generalitat Valenciana — Conselleria de Hacienda (tax rates and reductions)
Last updated: 2026-09-04