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Everything you need to know before buying real estate is included in our Spain Property Pack
Costa Blanca remains one of Spain's most welcoming destinations for foreign property buyers in January 2026, with Alicante province recording the highest share of international transactions in the country.
This guide covers everything you need to know about buying property on the Costa Blanca as a foreigner, from legal requirements and visa rules to taxes, mortgages, and common pitfalls, and we keep this article updated as regulations change.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Costa Blanca.
Insights
- Alicante province leads Spain with over 43% of property transactions made by foreign buyers in 2025, making Costa Blanca the country's most international housing market.
- Valencia's property transfer tax drops from 10% to 9% on June 1, 2026 for properties under 1 million euros, which could save buyers around 4,000 to 6,000 euros on a typical purchase.
- Non-resident foreigners in Costa Blanca can typically secure mortgages covering 60% to 70% of the property value, with interest rates ranging from 3.1% to 4.2% in January 2026.
- Spain's golden visa program ended in 2025, meaning property purchases no longer grant automatic residency rights, but other visa routes like the non-lucrative residence permit remain available.
- Short-term rental registration in Valencia has become increasingly enforced, and buying a Costa Blanca property without verifying its tourist rental eligibility is the most common costly mistake foreigners make.
- Annual property tax (IBI) on a typical Costa Blanca apartment runs between 300 and 1,200 euros per year, calculated on the cadastral value rather than your purchase price.
- Non-EU property owners who rent out their Costa Blanca homes face a 24% tax on gross rental income, while EU residents pay 19% and can deduct allowable expenses.
- Spain's government has proposed a 100% tax on property purchases by non-EU non-residents, though as of the first half of 2026 this remains a proposal requiring parliamentary approval, not current law.
What can I legally buy and truly own as a foreigner in Costa Blanca?
What property types can foreigners legally buy in Costa Blanca right now?
In January 2026, foreigners can legally purchase virtually any type of residential property on the Costa Blanca, including apartments, townhouses, villas, and even rural fincas, with full freehold ownership in their own name.
The most important condition is that all foreign buyers must obtain an NIE (Foreigner Identification Number) before completing the purchase, as this tax ID is required to sign the deed, pay taxes, and set up utilities.
Costa Blanca's property market is particularly well-equipped for international buyers, with Alicante province recording the highest foreign buyer share in Spain, over 43% of all transactions in the first half of 2025, which means agents, notaries, and banks are experienced with foreign purchases.
Non-EU buyers should also be aware that certain properties in strategic defense zones may require military authorization before registration, though this affects only a small number of locations and your lawyer should check this during due diligence.
Finally, please note that our pack about the property market in Costa Blanca is specifically tailored to foreigners.
Can I own land in my own name in Costa Blanca right now?
Yes, foreigners can generally buy and own land in their own name on the Costa Blanca, whether it is a building plot, agricultural land, or a property with substantial grounds.
However, there is one important exception: properties in certain "national defense" zones require non-EU buyers to obtain prior military authorization before the land registry will complete the registration, so your lawyer should verify whether this applies to your specific property.
For the vast majority of Costa Blanca locations, including popular areas like Jávea, Benidorm, Torrevieja, and Orihuela Costa, no such restriction applies and you can purchase directly without additional approvals.
By the way, we cover everything there is to know about the land buying process in Costa Blanca here.
As of 2026, what other key foreign-ownership rules or limits should I know in Costa Blanca?
As of early 2026, there is no general foreign ownership quota in Costa Blanca, meaning there is no rule like "only a certain percentage of units in a building can be foreign-owned," which makes purchasing straightforward compared to some other countries.
That said, individual community rules (the HOA or comunidad de propietarios) in apartment buildings and urbanizaciones can restrict certain activities, particularly short-term tourist rentals, so you should always review these bylaws before buying if you plan to rent the property on platforms like Airbnb.
Foreign buyers must register their purchase with the Land Registry and, if renting out the property, comply with the Valencian Community's tourist accommodation registration process, which involves declaring the property through the regional government's official procedure.
The most significant upcoming change to monitor is Spain's proposed 100% tax on property purchases by non-EU non-residents, which has been presented to parliament but not yet passed into law as of the first half of 2026, so treat it as a policy risk rather than current regulation.
What's the biggest ownership mistake foreigners make in Costa Blanca right now?
The single biggest mistake foreigners make in Costa Blanca is buying a property with the assumption that they can legally operate short-term tourist rentals, without first verifying that the property has proper registration, compliant cadastral documentation, and no community rules prohibiting such use.
If you make this mistake, you could face fines from the Valencian authorities, be forced to stop renting immediately, and find your property is worth significantly less than you paid because it cannot legally generate rental income.
Other classic pitfalls include not verifying that the property's built area matches what is registered in the cadastre, overlooking unpaid community fees that transfer to the new owner, and underestimating closing costs by not budgeting for the 10% to 13% in taxes and fees on top of the purchase price.
We have made this infographic to give you a quick and clear snapshot of the property market in Spain. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which visa or residency status changes what I can do in Costa Blanca?
Do I need a specific visa to buy property in Costa Blanca right now?
No, you do not need residency or any specific visa to buy property in Costa Blanca, and many foreigners purchase while visiting on a standard tourist stay of up to 90 days within any 180-day period under Schengen rules.
The main administrative requirement that can block a purchase is not having an NIE (Foreigner Identification Number), which is mandatory for signing the deed, opening a Spanish bank account, paying taxes, and setting up utilities, so you should apply for this early in the process.
Yes, you will need a local tax ID, specifically the NIE, before you can complete your Costa Blanca property purchase, and the application involves submitting Form EX-15, paying a small fee (around 10 euros), and attending an appointment at a police station or foreigners' office.
A typical document set for completing a Costa Blanca property purchase includes your passport, NIE certificate, proof of funds or mortgage approval, the signed private purchase contract (contrato de arras), and any power of attorney if you cannot attend the notary signing in person.
Does buying property help me get residency and citizenship in Costa Blanca in 2026?
As of early 2026, buying a property in Costa Blanca does not automatically grant you residency or citizenship, as Spain's golden visa program tied to real estate investment ended in 2025.
Before its closure, the golden visa allowed investors who purchased property worth over 500,000 euros to obtain residency, but this route is no longer available for new applicants.
If you want to live in Spain long-term, you will need to apply through other pathways such as the non-lucrative residence visa (for retirees with sufficient income), the digital nomad visa (for remote workers), or work-based permits, all of which are separate from property ownership.
Can I legally rent out property on my visa in Costa Blanca right now?
Your visa status does not prevent you from legally owning a rental property in Costa Blanca, as even non-residents can earn rental income from Spanish property, though you must comply with tax filing requirements and, for short-term rentals, register the property with the Valencian authorities.
You do not need to live in Spain to rent out your Costa Blanca property, and many foreign owners manage rentals from abroad, though most use a local property manager or gestor to handle bookings, maintenance, and the required tax filings.
The key detail foreigners must know is that short-term tourist rentals in the Valencian Community require formal registration through the regional government's "vivienda de uso turístico" procedure, and operating without this registration can result in significant fines.
We cover everything there is to know about buying and renting out in Costa Blanca here.
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How does the buying process actually work step-by-step in Costa Blanca?
What are the exact steps to buy property in Costa Blanca right now?
The standard sequence to buy property in Costa Blanca involves finding and negotiating on a property, obtaining your NIE, signing a reservation contract with a small deposit, conducting due diligence on title and liens, signing a private contract (contrato de arras) with a larger deposit (typically 10%), arranging financing if needed, signing the public deed at a notary, paying taxes, and registering the property at the Land Registry.
You do not have to be physically present for every step, as many buyers sign via a power of attorney (poder notarial) that allows their lawyer to complete the notary signing on their behalf when they cannot travel to Spain.
The step that typically makes the deal legally binding is signing the contrato de arras (private purchase contract) and paying the deposit, after which the seller must return double the deposit if they withdraw, and the buyer loses the deposit if they pull out without valid reason.
The typical timeline from accepted offer to final registration in Costa Blanca ranges from 6 to 12 weeks for a straightforward cash purchase, or 8 to 16 weeks if mortgage financing is involved, though complex due diligence issues can extend this.
We have a document entirely dedicated to the whole buying process our pack about properties in Costa Blanca.
Is it mandatory to get a lawyer or a notary to buy a property in Costa Blanca right now?
A notary is effectively mandatory for a standard Costa Blanca property purchase because the deed (escritura pública) must be signed before a notary to allow registration at the Land Registry, while a lawyer is not legally required but is strongly recommended for foreigners to protect their interests.
The key difference is that the notary is a neutral public official who verifies identities, confirms the parties understand the transaction, and certifies the deed, while a lawyer works exclusively for you to conduct due diligence, review contracts, check for liens, and ensure you are not buying a problem property.
When engaging a lawyer for a Costa Blanca purchase, make sure their scope explicitly includes verifying the property's Land Registry and cadastral records, confirming there are no outstanding debts or charges, checking community fee status, and reviewing any tourist rental eligibility if that is relevant to your plans.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Spain versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What checks should I run so I don't buy a problem property in Costa Blanca?
How do I verify title and ownership history in Costa Blanca right now?
The official registry you should use to verify title and ownership in Costa Blanca is the Registro de la Propiedad (Land Registry), where your lawyer can request a document called a nota simple that shows the current registered owner, the property description, and any mortgages or charges.
The key title document to request is the nota simple, which is an extract from the Land Registry that confirms who legally owns the property and what encumbrances exist, and this should be obtained as close to the purchase date as possible to catch any last-minute changes.
A realistic look-back period for ownership history checks in Costa Blanca is 10 to 15 years, which helps identify any irregularities such as multiple rapid sales, inheritance disputes, or previously cancelled charges that could indicate problems.
One clear red flag that should stop or pause a purchase is finding an active embargo (seizure order) or pending legal claim registered against the property, as this means the property could be subject to forced sale or the ownership could be disputed.
You will find here the list of classic mistakes people make when buying a property in Costa Blanca.
How do I confirm there are no liens in Costa Blanca right now?
The standard way to confirm there are no liens on a Costa Blanca property is to obtain a fresh nota simple from the Land Registry, which lists all recorded mortgages, embargoes, easements, and other charges, combined with seller-provided certificates showing community fees and IBI property tax are paid up to date.
One common type of lien you should specifically ask about is unpaid community fees (cuotas de comunidad), because under Spanish law, the new owner can be held liable for the previous owner's community debts from the current year and up to three previous years.
The best form of written proof is a nota simple issued within the last few days before signing, plus a certificate from the community administrator confirming the seller has no outstanding community fee debt, as these documents together cover both public registry charges and building-level obligations.
How do I check zoning and permitted use in Costa Blanca right now?
The authority to check zoning and permitted use for a Costa Blanca property is the local Ayuntamiento (town hall), where you can request information on what the property is legally classified for and whether your intended use, such as residential, rental, or renovation, is permitted.
The document that typically confirms zoning classification is the ficha urbanística or cédula urbanística from the town hall, combined with the cadastral record from the Catastro which shows the property's official use classification and physical description.
One common zoning pitfall foreign buyers miss in Costa Blanca is purchasing a property assuming they can do tourist rentals, only to discover the property is in a zone where new tourist licenses are restricted, the building's community rules prohibit short-term letting, or the cadastral classification does not support commercial use.
Buying real estate in Costa Blanca can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Can I get a mortgage as a foreigner in Costa Blanca, and on what terms?
Do banks lend to foreigners for homes in Costa Blanca in 2026?
As of early 2026, yes, Spanish banks actively lend to foreigners for property purchases in Costa Blanca, and the region's high concentration of international buyers means many banks have dedicated English-speaking mortgage desks experienced with non-resident applications.
The realistic loan-to-value range for foreign borrowers in Costa Blanca is typically 60% to 70% for non-residents, meaning you need a deposit of 30% to 40%, while residents with Spanish tax status and local income can sometimes secure up to 80%.
The single most common eligibility factor that determines whether a foreigner qualifies is proof of stable income, with banks requiring documentation of your salary, pension, or other regular income in your home country, along with bank statements and tax returns to verify affordability.
You can also read our latest update about mortgage and interest rates in Spain.
Which banks are most foreigner-friendly in Costa Blanca in 2026?
As of early 2026, the banks most commonly used by foreigners for Costa Blanca mortgages include Santander, BBVA, CaixaBank, Sabadell, and Bankinter, all of which have experience processing non-resident applications and often have English-speaking staff at branches in popular coastal areas.
What makes these banks more foreigner-friendly is their willingness to assess income from abroad, their familiarity with documentation from other countries, and in many cases their dedicated "international" or "non-resident" mortgage products with clearer processes for foreign applicants.
These banks do lend to non-residents who do not have Spanish residency, though typically at lower loan-to-value ratios (60% to 70%) and slightly higher interest rates than resident borrowers would receive.
We actually have a specific document about how to get a mortgage as a foreigner in our pack covering real estate in Costa Blanca.
What mortgage rates are foreigners offered in Costa Blanca in 2026?
As of early 2026, foreign borrowers in Costa Blanca can expect mortgage interest rates in the range of 3.1% to 4.2% for fixed-rate products, with variable rates typically starting at Euribor plus 1.0% to 1.8% depending on the borrower's profile and relationship with the bank.
Fixed-rate mortgages for foreigners tend to be priced 0.3% to 0.7% higher than variable rates at the outset, but they offer payment certainty, while variable rates start lower but carry the risk of increasing if Euribor rises over the loan term.
We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What will taxes, fees, and ongoing costs look like in Costa Blanca?
What are the total closing costs as a percent in Costa Blanca in 2026?
For a resale property in Costa Blanca in 2026, expect total closing costs of roughly 10% to 13% on top of the purchase price, with the exact amount depending on when you complete and the property value.
The realistic range is 10% to 12% for purchases completing after June 1, 2026 (when the transfer tax drops to 9%), and 11% to 13% for purchases completing before that date (when the 10% rate still applies), with new-build purchases running 12% to 14% due to VAT.
The specific categories that make up closing costs include property transfer tax (ITP) or VAT, stamp duty (AJD), notary fees, Land Registry fees, legal fees, and gestoría (administrative agent) charges.
The single largest contributor is almost always the property transfer tax (ITP), which at 9% to 10% of the purchase price represents roughly 70% to 80% of total closing costs on a resale property in the Valencian Community.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Costa Blanca.
What annual property tax should I budget in Costa Blanca in 2026?
As of early 2026, you should budget roughly 300 to 1,200 euros per year for annual property tax (IBI) on a typical Costa Blanca apartment or townhouse, and 600 to 2,500 euros or more per year for a larger villa with pool and grounds, equivalent to roughly 250 to 2,100 USD or similar in euros.
IBI is assessed by each municipality based on the cadastral value (valor catastral) of your property, which is typically much lower than the market price, and then a local tax rate is applied, which varies by town, so two similar properties in different Costa Blanca municipalities can have noticeably different IBI bills.
How is rental income taxed for foreigners in Costa Blanca in 2026?
As of early 2026, non-EU foreigners earning rental income from a Costa Blanca property typically face a 24% tax on gross rental income under Spain's non-resident income tax (IRNR), while EU/EEA residents pay 19% and can usually deduct allowable expenses from the taxable amount.
The basic requirement is that foreign owners must file quarterly or annual IRNR returns with Spain's tax agency (AEAT), and even if you do not rent out the property, you may owe imputed income tax based on the cadastral value, which catches many second-home owners by surprise.
What insurance is common and how much in Costa Blanca in 2026?
As of early 2026, a typical annual home insurance premium for a Costa Blanca apartment or townhouse runs between 180 and 350 euros per year, while larger villas with pools and higher rebuild values range from 300 to 800 euros or more per year, equivalent to roughly 190 to 850 USD.
The most common type of coverage is a "seguro de hogar" (home insurance) that combines building coverage, contents protection, and third-party liability, with landlord-specific policies available if you plan to rent the property.
The biggest factor that makes insurance premiums higher or lower for the same property type in Costa Blanca is the rebuild value and location, as properties closer to the coast, with pools, or in areas with higher theft risk typically face higher premiums than inland or lower-risk locations.
Get the full checklist for your due diligence in Costa Blanca
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Costa Blanca, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source name | Why it's authoritative | How we used it |
|---|---|---|
| Spain's Official State Gazette (BOE) | It's the official publication of Spanish law. | We used it to anchor the legal tax rates and change dates (ITP/AJD) in the Valencian Community. We then translated those legal changes into practical closing-cost numbers for Costa Blanca homebuyers. |
| DOGV (Valencian Regional Gazette) | It's the official record of Valencian regional legislation. | We used it to cross-check the BOE publication and confirm the effective dates for property transfer taxes. We relied on it as the local legal source for Costa Blanca buyers. |
| Colegio de Registradores (Land Registry Statistics) | It's the land registrars' official dataset of recorded transactions. | We used it to quantify how foreign buying behaves in Spain and Costa Blanca. We combined it with local reporting to show that Alicante is a foreign-buyer hotspot. |
| Notariado (Spanish Notaries Council) | It's the national body representing Spanish notaries. | We used it to explain why the notary step matters and what costs are typically regulated. We also used it to keep the buying process realistic and step-by-step. |
| Spanish Tax Agency (AEAT) | It's Spain's official tax authority. | We used it to explain how Spain taxes non-residents on rental income and imputed income. We then turned that into plain-language explanations of what foreign owners will actually pay. |
| Spanish Cadastre (Catastro) | It's the official cadastre database for property records. | We used it for property verification checks including cadastral reference, surfaces, and value. We also explained why the cadastre matters for taxes and tourist-rental registration. |
| EU Commission (Schengen Visa Policy) | It's the EU's official explanation of Schengen visa rules. | We used it to keep the visa discussion accurate, specifically the 90 days in any 180-day rule. We then explained what that does and does not change for property buying. |
| Generalitat Valenciana (Tourist Housing Registration) | It's the official Valencian government procedure page. | We used it to explain the local reality that tourist rentals are regulated and require registration. We then turned that into a buyer checklist for Costa Blanca properties. |
| Ayuntamiento de Alicante (IBI Ordinance) | It's the municipal authority that sets local property tax rules. | We used it to ground what IBI is and confirm Alicante's local ordinance context. We then provided buyer-friendly budgeting ranges for Costa Blanca homes. |
| Diputación de Alicante (Municipal Tax Info) | It compiles municipal tax parameters with attribution to official sources. | We used it to give a concrete Costa Blanca example of how IBI rates work. We then translated rates on cadastral value into euros-per-year estimates for typical properties. |
| Reuters | It's a global wire service with strong editorial standards. | We used it to treat foreign-buyer restriction talk correctly as policy proposals requiring legislation. We included it as a risk to monitor, not as current law. |
| Spain Ministry of Inclusion (Residence Permits) | It's the national ministry responsible for immigration authorizations. | We used it to frame which residence permits exist and where to verify requirements. We then explained what residency changes in practice for banking, lending, and taxes. |
| Spanish National Police (NIE Fee Portal) | It's the official Police portal for NIE-related fee forms. | We used it to keep the tax ID section practical: yes, you need an NIE, and there are official forms and fees. We avoided unofficial sources as primary references. |
| Cinco Días | It's a major Spanish financial newspaper with reliable market data. | We used it for mortgage rate benchmarks and lending market dynamics. We then applied this to estimate what foreign borrowers can expect in Costa Blanca. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Spain. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.