The cost of buying property on the Costa Blanca, on top of the price

On the Costa Blanca, one question settles the cost of buying before any other: are you buying a resale, or a new build direct from the developer? The two routes are taxed under different regimes. A second question carries real weight on a resale: if the value exceeds one million euros, a higher rate applies to the whole value.

The calculator above gives you the order of magnitude. What it computes, and where it stops, is set out below.

About the figure in the calculator

The text of this guide does not print tax rates. A rate set by a region is wrong from the day it changes, and nothing in the text gives that away. The Valencian Community lowered the general rate of transfer tax, and the rate of stamp duty on the deed, for purchases from 1 June 2026; guides and calculators written before then are out of date for a purchase made today.

A calculator has to work with numbers. So the rates in force are shown beside it, together with the date they were checked and the legal source. The rates have been read against the text of the law, not reviewed by a tax adviser. The result is a planning figure, not legal advice.

Resale: transfer tax

Buy from a private owner and you pay ITP, the Impuesto sobre Transmisiones Patrimoniales, shown in the calculator as transfer tax. For a buyer from the UK, it is the tax that does the job stamp duty does at home. The rate is set by the autonomous community, and for the coast of the province of Alicante that is the Valencian Community. The law makes the buyer liable for it, whatever the contract says. There are no price bands: one general rate applies to the whole value.

Reduced rates almost always depend on the buyer, and on the home becoming their main residence for the purposes of Spanish income tax: for instance a first main residence for buyers under 35, large families and single-parent families, and buyers with certain recognised disabilities, some of them subject to income limits. A holiday home will not normally qualify. The calculator does not know your circumstances and works with the general rate.

The threshold at one million euros

Once the value of the property exceeds one million euros, a higher rate applies, and it applies to the whole value, not just to the part above the threshold. That is how the Valencian law is written.

The tax therefore jumps at the threshold: one euro more on the price can add a five-figure sum to the bill. Enter a price just below one million in the calculator, then one just above, and you will see the difference. Tools that calculate in bands come out too low above the threshold.

Buying in stages does not get round it. Acquisitions that relate to the same property as registered at the Land Registry, made from the same seller within three years, count as a single transfer.

The reference value

The tax is not simply assessed on the price. What counts is the valor de referencia, the reference value the Cadastre (Catastro) sets for each property. If the agreed price is higher, the price counts; if it is lower, you pay on the reference value. A low price therefore reduces the tax only down to that line.

The reference value is set afresh every year, and the value on the day of purchase is the one that applies. The Cadastre publishes it on its electronic office, the Sede Electrónica; looking it up requires identification, and your lawyer can do it for you. As a buyer you can challenge it only in connection with the tax, by applying to have your tax return corrected or by appealing against an assessment.

The calculator works with the price you enter. If the reference value is higher, enter that instead. If your property is close to one million and the reference value is above the price, ask your lawyer to establish in advance which value counts for the threshold.

New build: VAT and stamp duty

Buy from a developer transferring the home for the first time and no ITP is due. Instead you pay:

IVA, Spanish VAT, at the reduced rate for housing, which is set nationally. It covers the home together with up to two parking spaces and any annexes transferred with it. It does not automatically apply to a building plot or a commercial unit; have the rate confirmed before you reserve.

AJD, Actos Jurídicos Documentados, a tax on the notarised deed, shown in the calculator as stamp duty. Despite the name, it is not the counterpart of the stamp duty British buyers know; ITP is. Its rate is set by the Valencian Community, and it too was lowered with effect from 1 June 2026. The taxable base is at least the reference value. If the new build becomes your main residence for tax purposes, a considerably lower rate applies, which the calculator does not use.

ITP and VAT rule each other out. Even when you buy from a developer, ITP can apply instead of VAT: if the home was used continuously for two years or more before the sale, for example by the developer itself or by a tenant without a purchase option, the sale no longer counts as a first transfer. That does not apply if you yourself were that user.

Notary, Land Registry, gestoría and lawyer

The notary and the Land Registry charge according to state fee scales that apply throughout Spain. Both are degressive, so the fee falls as a share of the price as the price rises, and the registry fee for the entry is also capped. There are further charges that depend on volume, such as the number of pages and copies. A gestoría, an administrative agency, usually handles the tax return and the registration. Your lawyer is a separate item, and not one we would advise anyone to do without; agree the fee in writing in advance.

That is why the calculator shows the notary, Land Registry and gestoría as ranges, and the lawyer as a share of the price with a minimum amount. These are planning assumptions, not a tariff calculation.

Who pays what

For the notary, the Civil Code sets a default rule: the seller pays for executing the deed, and the buyer pays for the first copy and everything after the sale. The parties may agree otherwise, and the contract is what counts. Read the costs clause before you sign.

The plusvalía municipal, the municipal tax on the increase in the value of the land, is owed by the seller. Whether a municipality levies it, and at what rate, is for the municipality to decide.

Mortgage: what the bank pays

On consumer loans secured on residential property, you pay for the valuation, the tasación. Under Spanish law the bank pays the notary’s fees for the mortgage deed, the gestoría and the registration of the mortgage; copies are paid for by whoever asks for them. Since November 2018 the stamp duty on the mortgage has also been owed by the bank, which is why the calculator has no line for it.

Do not count on a bank financing the purchase costs as well. Budget for the taxes and fees from your own funds.

If you do not live in Spain

The general rate of transfer tax applies regardless of where you live; only the reductions depend on a main residence.

If the seller is not resident in Spain and has no permanent establishment there, you must withhold a share of the price fixed by law and pay it to the tax authority as an advance on the seller’s tax. That costs you nothing extra, because the amount comes off the price; if it is not paid, the property itself remains liable for it. If the seller is a non-resident individual, the law also makes you the substitute taxpayer for the plusvalía municipal, liable in the seller’s place. Settle in the contract how that amount is secured, for example by withholding it from the price.

The additional tax proposed in the Spanish parliament in 2025 for buyers with no residence or registered office in the EU exists only in a bill and is not law in force.

When each cost falls due

Before completion you normally pay only towards the price, for example the deposit under the preliminary contract, the contrato de arras; the sequence is set out in the guide to buying property on the Costa Blanca. On a new build from the developer, however, VAT falls due with every stage payment. The balance of the price, the notary and the remaining taxes follow on completion day at the notary and afterwards.

ITP must be declared and paid within a statutory deadline after the deed is signed, usually by the gestoría. Without proof of payment, or at least of filing, the Land Registry will not accept the deed; any omission delays your registration.

And afterwards

Each year the municipality levies IBI, the property tax on the cadastral value, at a rate it sets itself. It arises on 1 January for the whole year, and the property remains liable for unpaid amounts even after a sale. Ask to see the latest receipts before completion. In residential developments, community charges come on top.

As a non-resident owner you have annual filing obligations; see non-resident property tax. If you intend to let the property, settle the licence question before you buy: holiday rental licences on the Costa Blanca.

Frequently asked questions

What is the cost of buying property on the Costa Blanca?

It depends on two questions: resale or new build, and on a resale, whether the value exceeds one million euros. Notary, Land Registry, gestoría and lawyer come on top. Because of the threshold, a flat percentage would be misleading; the calculator above gives the total for your price.

How much is transfer tax on the Costa Blanca?

The Valencian Community sets a general rate and a higher one once the value exceeds one million euros, both applied to the whole value. The general rate was lowered for purchases from 1 June 2026. The calculator shows the rates in force with the date they were checked.

Does the higher rate apply only to the part above one million?

No. Above the threshold it applies to the whole value. Calculators that tax only the excess at the higher rate come out too low there.

Do I pay VAT or transfer tax?

VAT and stamp duty when you buy from a developer, transfer tax on a resale. Never both.

Do I pay more transfer tax as a non-resident?

No. The general rate applies regardless of where you live. The reductions, however, require a main residence.

Who pays the plusvalía municipal?

The seller. If the seller is an individual not resident in Spain, the law makes the buyer the substitute taxpayer. That belongs in the contract.