The costs to plan for when buying on the Costa Blanca

Most people arrive at a purchase in Spain with a clear idea of the price they are willing to pay, and far less clarity on everything that sits around it. On the Costa Blanca, which falls within the Comunidad Valenciana, the taxes and professional fees on a resale purchase typically add somewhere between 11 and 14% to the price. Building that in from the beginning is the difference between a comfortable purchase and a stressful one.

Resale purchases: transfer tax at 9%

The Comunidad Valenciana reduced transfer tax (ITP) from 10 to 9% with effect from 1 June 2026, and stamp duty (AJD) from 1.5 to 1.4%. On a 400,000 euro resale, that 9% is 36,000 euros. Reduced rates exist in defined circumstances, for example younger buyers, large families and buyers with a recognised disability purchasing a habitual residence, and those are worth checking with your lawyer rather than assuming.

One point catches buyers out regularly. Tax is calculated on the higher of the price paid or the valor de referencia, the reference value the cadastre assigns to the property. Where the reference value sits above the agreed price, the tax follows the reference value, so it is worth confirming before you sign.

New builds: 10% IVA plus 1.4% AJD

A first transfer from a developer is subject to 10% IVA rather than transfer tax, with AJD of 1.4% on top. On a 500,000 euro new build that is 50,000 euros of IVA and 7,000 euros of stamp duty. Plot purchases and commercial units follow different rules at 21%, which is one reason we look at how a purchase is structured early.

Professional fees, as a working guide

• Notary: broadly 0.3 to 0.6% of the price, commonly 800 to 1,600 euros on a typical Costa Blanca purchase.
• Land registry: broadly 0.2 to 0.4%, often 500 to 1,000 euros.
• Lawyer: usually around 1% plus 21% IVA, with a minimum fee of roughly 1,500 to 2,500 euros.
• Gestoría and paperwork, including NIE applications: typically 300 to 800 euros.
• Technical survey or a legality check on extensions and pools: usually 500 to 1,500 euros, and money well spent on older villas.
• Mortgage costs if you are borrowing: valuation of roughly 350 to 700 euros, plus an arrangement fee of up to 1% depending on the lender. Since 2019 the bank carries notary, registry and AJD on the mortgage deed itself.

As a planning figure we ask resale buyers to hold 12 to 13% of the price for taxes and fees, and new build buyers 12 to 13% as well once IVA, AJD and professional costs are combined. Your lawyer should confirm the exact numbers for your purchase before you commit.

The first year of ownership

• IBI, the annual council tax: on the Costa Blanca commonly 400 to 1,200 euros for an apartment and 800 to 2,500 euros for a villa, depending on the municipality and cadastral value.
• Refuse charge (basura): usually 100 to 250 euros a year, billed separately in most towns.
• Community fees on an urbanisation or apartment block: often 600 to 2,400 euros a year, higher where there are lifts, gardens and pools.
• Home insurance: typically 300 to 700 euros a year for a villa.
• Pool and garden care: around 100 to 180 euros a month for a standard private pool, plus garden maintenance.
• Non-resident imputed income tax if the property is not let: 19% for EU and EEA residents, 24% otherwise, applied to a small deemed income based on cadastral value. Modelo 210 is filed annually.

How we help

Our role is to help you see the full picture before decisions are made. We review the property with you, put figures against the works we would expect, help you compare quotations on a like for like basis, and coordinate the practical setup once the purchase completes. You keep the decisions; we make sure they are informed ones. Tax rates and municipal charges change, so treat these figures as a planning guide and confirm them with your legal and tax advisers.