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Everything you need to know before buying real estate is included in our Spain Property Pack
Buying property in Costa Blanca as a foreigner means budgeting for more than just the purchase price, and the extra costs can catch you off guard if you don't plan ahead.
This guide breaks down every tax, fee, and hidden charge you'll face when purchasing residential real estate in Costa Blanca in 2026.
We constantly update this blog post to reflect the latest rates and regulations, so you always have accurate information.
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.
Overall, how much extra should I budget on top of the purchase price in Costa Blanca in 2026?
How much are total buyer closing costs in Costa Blanca in 2026?
As of early 2026, most foreign buyers purchasing residential property in Costa Blanca should budget between 12% and 16% on top of the purchase price for total closing costs, which translates to roughly €24,000 to €32,000 (about $26,000 to $35,000 USD) on a typical €200,000 home.
If you keep expenses to the bare legal minimum by skipping optional services like an independent lawyer and paying cash without a mortgage, you could get away with around 11% extra for a resale or 12.5% for a new-build in Costa Blanca.
However, the maximum realistic budget you should plan for is closer to 15% to 18% for resale properties and 16% to 19% for new-builds in Costa Blanca, especially when you factor in lawyer fees, sworn translations, power of attorney costs, and mortgage-related expenses.
The main factors that determine whether your Costa Blanca closing costs fall at the low or high end include whether you're buying a new-build (higher taxes) versus a resale, whether you need a mortgage (adds valuation and admin fees), and whether you hire a lawyer and interpreter (highly recommended for foreigners).
What's the usual total % of fees and taxes over the purchase price in Costa Blanca?
The usual total percentage of fees and taxes over the purchase price in Costa Blanca is around 12.5% to 13.5% for resale properties and 14% to 15.5% for new-builds.
The realistic low-to-high percentage range that covers most standard residential transactions in Costa Blanca runs from about 11% at the absolute minimum up to 19% when all optional services and mortgage costs are included.
Government taxes make up the largest share of that total, with roughly 10% to 11.5% going to ITP or VAT plus AJD, while professional service fees like notary, registry, and legal support typically add another 1.5% to 3%.
By the way, you will find much more detailed data in our property pack covering the real estate market in Costa Blanca.
What costs are always mandatory when buying in Costa Blanca in 2026?
As of early 2026, the mandatory costs when buying property in Costa Blanca include the main purchase tax (either ITP at 10% for resale or VAT at 10% plus AJD at 1.5% for new-builds), notary fees for the deed (typically €600 to €1,200), and Land Registry inscription fees (typically €400 to €1,000).
Optional but highly recommended costs for foreign buyers in Costa Blanca include hiring an independent conveyancing lawyer (usually around 1% of the price), interpreter or sworn translation services (€150 to €500), a property survey or snagging inspection, and a valuation if you're taking out a mortgage.
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What taxes do I pay when buying a property in Costa Blanca in 2026?
What is the property transfer tax rate in Costa Blanca in 2026?
As of early 2026, the property transfer tax (called ITP) in Costa Blanca is 10% of the purchase price for resale residential properties, since Costa Blanca falls within the Valencian Community which sets this rate.
There is no automatic extra transfer tax specifically for foreigners buying property in Costa Blanca, though your real "foreigner premium" often shows up as higher professional support costs rather than a different statutory rate.
Buyers pay VAT (called IVA in Spain) instead of ITP when purchasing a new-build property directly from a developer or business in Costa Blanca, and this VAT rate is 10% for residential homes.
Stamp duty (called AJD in Spain) applies in Costa Blanca at 1.5% when you buy a new-build and pay VAT, since it's charged on the notarised deed documenting the purchase.
Are there tax exemptions or reduced rates for first-time buyers in Costa Blanca?
Valencian law does offer reduced ITP rates (as low as 8%) and reduced AJD rates (as low as 0.1%) for certain buyers, but these exemptions in Costa Blanca typically require the property to be your "habitual residence" and often include age or income limits.
If you buy property through a company instead of as an individual in Costa Blanca, the VAT versus ITP logic still applies based on the sale type, but company ownership creates additional compliance costs that rarely make sense for non-professional individual buyers.
Yes, there is a significant tax difference between new-build and resale in Costa Blanca: resale properties are taxed with 10% ITP only, while new-builds cost 10% VAT plus 1.5% AJD, making new-builds slightly more expensive in total taxes.
To qualify for reduced rates in Costa Blanca, first-time buyers generally need to prove the property will be their habitual residence (not a holiday home), meet income thresholds, and sometimes be under age 35, which most foreign holiday-home buyers cannot satisfy.
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.
Which professional fees will I pay as a buyer in Costa Blanca in 2026?
How much does a notary or conveyancing lawyer cost in Costa Blanca in 2026?
As of early 2026, notary fees for a residential property purchase in Costa Blanca typically range from €600 to €1,200 (about $650 to $1,300 USD), while an independent conveyancing lawyer usually charges around 1% of the purchase price plus VAT, often with a minimum fee of €1,000 to €1,500.
Notary fees in Costa Blanca are regulated by a government tariff that scales with the property price, so they're not arbitrary, while lawyer fees are typically charged as a percentage of the purchase price with a minimum floor.
Translation and interpreter services for foreign buyers in Costa Blanca usually cost between €150 and €500 (about $165 to $545 USD), depending on whether you need just interpreter attendance at signing or full sworn translations of multiple documents.
If you're a non-resident planning to rent out or later sell your Costa Blanca property, hiring a tax advisor is highly recommended, and basic annual non-resident tax compliance typically costs €300 to €800 per year (about $325 to $870 USD).
We have a whole part dedicated to these topics in our our real estate pack about Costa Blanca.
What's the typical real estate agent fee in Costa Blanca in 2026?
As of early 2026, the typical real estate agent commission in Costa Blanca ranges from 3% to 5% of the purchase price plus VAT, which on a €200,000 property works out to roughly €6,000 to €10,000 (about $6,500 to $10,900 USD).
In most of Spain the seller traditionally pays the agent's commission, but Costa Blanca's foreign-heavy market often features buyer-side agent fees, admin charges, or sourcing fees that effectively shift some cost to the buyer.
The realistic low-to-high range for agent fees in Costa Blanca runs from around 3% (sometimes less for higher-value properties) up to 6% or more when working with buyer's agents who provide full relocation support services.
How much do legal checks cost (title, liens, permits) in Costa Blanca?
Legal checks including title search, liens verification, and permits review in Costa Blanca typically cost between €200 and €600 (about $220 to $650 USD) if itemised separately, though these are often bundled into your lawyer's overall fee.
A property valuation, which is mandatory if you're taking a mortgage in Costa Blanca, typically costs between €300 and €600 (about $325 to $650 USD) depending on the property type and value.
The most critical legal check you should never skip in Costa Blanca is verifying the property's debts and charges (including community fees and IBI arrears), because unpaid debts can transfer to you as the new owner.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Costa Blanca.
Get the full checklist for your due diligence in Costa Blanca
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What hidden or surprise costs should I watch for in Costa Blanca right now?
What are the most common unexpected fees buyers discover in Costa Blanca?
The most common unexpected fees foreign buyers discover in Costa Blanca include community-of-owners arrears that must be cleared at completion, utility reconnection or contract change costs, extra notary copies and apostilles for international documents, and power of attorney fees if you can't attend the signing in person.
Yes, you could inherit unpaid property taxes or community debts when purchasing in Costa Blanca, which is why your lawyer should always verify the last IBI receipts, request a community certificate, and check for registered charges before you complete.
Scams involving fake listings and fraudulent fees do occur in Costa Blanca's foreign-heavy coastal market, so you should never pay to personal bank accounts, always verify ownership before sending deposits, and have a lawyer validate all documents before transferring money.
Fees usually not disclosed upfront by sellers or agents in Costa Blanca include buyer-side "admin" charges from some intermediaries, optional-but-pressured service packs, post-completion utility setup costs, and minor legalization fees for documents.
In our property pack covering the property buying process in Costa Blanca, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Costa Blanca?
If the property has a tenant in Costa Blanca, you may face extra costs of €200 to €600 (about $220 to $650 USD) for a tenant status check and potentially much more if you need to negotiate a surrender payment (sometimes called "key money") to obtain vacant possession.
When you purchase a tenanted property in Costa Blanca, you inherit all obligations under the existing rental contract, including respecting the lease term, maintaining the security deposit, and following Spanish tenant protection rules.
Terminating an existing lease immediately after purchase is generally not possible in Costa Blanca under Spanish law, especially for long-term residential contracts, unless the lease has a specific clause allowing early termination or you can demonstrate you need the property as your primary residence.
A sitting tenant typically reduces the property's market value in Costa Blanca by 5% to 15% and gives you more negotiating power, though this discount may not compensate for the hassle if you want vacant possession quickly.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Costa Blanca.
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 fees are negotiable, and who really pays what in Costa Blanca?
Which closing costs are negotiable in Costa Blanca right now?
Negotiable closing costs in Costa Blanca include who pays for specific notary copies and admin steps, your lawyer's fee structure (fixed versus percentage), and how agent commissions are allocated between buyer and seller.
Closing costs that are fixed by law and cannot be negotiated in Costa Blanca include the main taxes (ITP at 10% or VAT plus AJD), notary tariffs (set by government regulation), and Land Registry fees (also regulated by law).
On negotiable fees in Costa Blanca, buyers can typically achieve savings of around 0.5% to 1% of the total transaction value by negotiating lawyer fees, getting the seller to cover certain admin costs, or agreeing to a lower agent commission structure.
Can I ask the seller to cover some closing costs in Costa Blanca?
In Costa Blanca, there is a reasonable chance the seller will agree to cover some closing costs, especially when properties have been on the market for a while or need repairs, though sellers rarely pay your taxes directly.
The specific closing costs sellers in Costa Blanca are most commonly willing to cover include clearing community debts and arrears, paying for specific repairs found during inspection, and sharing certain completion admin items like extra deed copies.
Sellers in Costa Blanca are more likely to accept covering closing costs when the property has been listed for several months without offers, when the market is slow, when the property needs work, or when you're a cash buyer who can close quickly.
Is price bargaining common in Costa Blanca in 2026?
As of early 2026, price bargaining is quite common in Costa Blanca, especially for older apartments, properties needing renovation, inland locations, or listings that have been sitting on the market for months.
Buyers in Costa Blanca typically negotiate between 3% and 8% below the asking price (for a €200,000 property, that's €6,000 to €16,000 or roughly $6,500 to $17,400 USD off), with larger discounts possible on overpriced or stale listings while prime beachfront properties tend to be stickier.
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What monthly, quarterly or annual costs will I pay as an owner in Costa Blanca?
What's the realistic monthly owner budget in Costa Blanca right now?
A realistic monthly owner budget (excluding mortgage payments) for residential property in Costa Blanca is typically €150 to €450 for apartments (about $165 to $490 USD or €1,800 to €5,400 per year) and €300 to €900 for villas with pools and gardens (about $325 to $980 USD monthly).
The main recurring expense categories that make up this monthly budget in Costa Blanca include community fees (for shared buildings or urbanizations), utility bills (electricity, water, gas), local property tax (IBI), home insurance, and general maintenance.
The realistic low-to-high range for monthly owner costs in Costa Blanca depends heavily on property type: a small inland apartment might cost as little as €100 per month (about $110 USD), while a large beachfront villa with pool could run €1,000 or more monthly (about $1,090 USD).
Community fees tend to vary the most in Costa Blanca because they depend entirely on your building or urbanization's amenities (pools, gardens, lifts, security) and how well the community is managed.
You can see how this budget affect your gross and rental yields in Costa Blanca here.
What is the annual property tax amount in Costa Blanca in 2026?
As of early 2026, the annual property tax (called IBI) in Costa Blanca typically ranges from €300 to €1,500 per year (about $325 to $1,635 USD or €25 to €125 monthly) for most residential properties, depending on the municipality and the property's cadastral value.
The realistic low-to-high range for annual IBI in Costa Blanca varies significantly: a small apartment with low cadastral value might pay under €200 per year (about $220 USD), while a large villa in a prime location could pay €2,000 or more annually (about $2,180 USD).
IBI in Costa Blanca is calculated by applying the municipal tax rate (which varies by town) to the property's cadastral value, which is an official valuation typically well below market value and recorded in Spain's Cadastre database.
Some exemptions or reductions to IBI exist in Costa Blanca for certain situations like large families, properties with solar panels, or historically protected buildings, though these vary by municipality and most foreign holiday-home owners don't qualify.
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.
If I rent it out, what extra taxes and fees apply in Costa Blanca in 2026?
What tax rate applies to rental income in Costa Blanca in 2026?
As of early 2026, the tax rate on rental income in Costa Blanca for non-resident landlords is 19% if you're from an EU or EEA country and 24% if you're from outside the EU/EEA.
EU/EEA non-resident landlords can often deduct certain expenses (like repairs, insurance, and community fees) from their rental income before calculating tax in Costa Blanca, while non-EU/EEA owners are generally taxed on gross rental income with limited or no deductions.
After deductions, the realistic effective tax rate for EU/EEA landlords in Costa Blanca often works out to around 10% to 15% of gross rental income, while non-EU/EEA owners typically pay the full 24% on gross receipts.
Yes, foreign property owners pay a different rental income tax rate than Spanish residents in Costa Blanca: residents pay progressive income tax rates (up to 47%), but their net position may be better due to broader expense deductions available under resident taxation.
Do I pay tax on short-term rentals in Costa Blanca in 2026?
As of early 2026, short-term rental income in Costa Blanca is fully taxable under the same non-resident rates (19% for EU/EEA or 24% for others), plus you'll face additional compliance requirements including tourism registration and potentially more frequent tax filings.
Short-term rental income is taxed at the same rates as long-term rental income in Costa Blanca, but the administrative burden is higher because you may need to file quarterly rather than annually and must comply with Valencian tourist accommodation regulations.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Costa Blanca.
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If I sell later, what taxes and fees will I pay in Costa Blanca in 2026?
What's the total cost of selling as a % of price in Costa Blanca in 2026?
As of early 2026, the total cost of selling a residential property in Costa Blanca typically ranges from 5% to 10% of the sale price, depending on your agent commission, legal support needs, and whether you have a mortgage to pay off early.
The realistic low-to-high percentage range for total selling costs in Costa Blanca runs from around 4% (if you sell privately without an agent) up to 12% or more if you factor in capital gains tax, agent fees, legal costs, and mortgage cancellation charges.
The specific cost categories that typically make up selling expenses in Costa Blanca include real estate agent commission (usually 3% to 5% plus VAT), legal and notary fees, energy certificate, municipal plusvalía tax on land value increase, and any early mortgage repayment penalties.
The single largest cost when selling in Costa Blanca is usually the real estate agent's commission, which at 3% to 5% plus VAT can easily reach €10,000 to €20,000 on a typical property sale.
What capital gains tax applies when selling in Costa Blanca in 2026?
As of early 2026, non-resident sellers of property in Costa Blanca are subject to capital gains tax on their profit, and critically, the buyer must withhold 3% of the total sale price at completion and pay it directly to the Spanish tax authorities as an advance on your tax liability.
Exemptions to capital gains tax in Costa Blanca exist for Spanish tax residents who reinvest in another primary residence or who are over 65 selling their habitual home, but these exemptions typically don't apply to non-resident foreign sellers of holiday properties.
Foreigners don't pay a higher capital gains rate in Costa Blanca, but the mandatory 3% withholding means you receive only 97% of the sale price at completion, with any overpayment refundable after you file your non-resident tax return.
Capital gain in Costa Blanca is calculated as the difference between your sale price and your original purchase price, adjusted for documented improvement costs and buying/selling expenses, with the gain then taxed under the non-resident income tax framework.
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 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 | Why it's authoritative | How we used it |
|---|---|---|
| Generalitat Valenciana (Hisenda) | Official Valencian government source for regional tax legislation. | We used it to confirm ITP (10%) and AJD (1.5%) rates for Costa Blanca purchases. We also referenced reduced-rate eligibility conditions. |
| Spanish Tax Agency (AEAT) | Spain's national tax authority with official guidance. | We used it to clarify when VAT versus ITP applies and to confirm non-resident rental tax rates. We also sourced the 3% withholding rule for non-resident sellers. |
| BOE (Spain's Official Gazette) | Publishes all binding Spanish legislation including fee tariffs. | We used it for notary and Land Registry regulated tariffs. We also verified upcoming 2026 tax rate changes through published laws. |
| Banco de España (Cliente Bancario) | Spain's central bank provides official consumer guidance. | We used it to explain mortgage-related costs and who pays them. We referenced valuation fee ranges from their guidance. |
| Consejo General del Notariado | Spain's national notaries council explains billing practices. | We used it to explain the "provisión de fondos" completion billing structure. We validated how notary costs are composed. |
| Ayuntamiento de Alicante | Official municipal source for Alicante city taxes. | We used it to provide a concrete Costa Blanca IBI rate example (0.62%). We showed how local rates are set by municipality. |
| Diputación de Alicante | Provincial government aggregating municipal tax data. | We used it for Torrevieja IBI rate data (0.40%) as a comparison. We demonstrated why nearby towns have different annual tax bills. |
| Sede Electrónica del Catastro | Spain's official property cadastre database. | We used it to explain how cadastral value determines IBI calculations. We grounded ownership cost explanations in the official system. |
| Idealista | Major Spanish property portal with market practice insights. | We used it to describe typical agent fee allocation between buyers and sellers. We cross-checked Costa Blanca negotiation norms. |
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