Taxes and Real Costs of Buying Property on the Costa Blanca (Transfer Tax, VAT, Notary and More)

Taxes and Real Costs of Buying Property on the Costa Blanca

When a buyer asks us what a property really costs, the correct answer isn’t the listing price. The real entry cost includes taxes, the deed, registration, advisory fees and several items that change depending on whether you’re buying new or resale.

The safest way to plan a purchase is to calculate the full budget from the outset. That way you don’t run out of margin at signing.

1. If you’re buying resale: Transfer Tax (ITP)

In the Valencian Community, buying a resale property is taxed under ITP (Property Transfer Tax). In 2026, the general rate published by the regional government is 9% for transactions from 1 June 2026 onward, with special cases that can vary depending on the specifics.

This means that if you’re buying a resale property, this tax is usually the main line item. There are also reduced rates or specific rules in certain cases worth reviewing individually.

2. If you’re buying new build: VAT and Stamp Duty (AJD)

For new build, the buyer typically bears:

• VAT on the purchase.
• Stamp Duty (AJD) on the deed, under applicable regulations.

In the Valencian Community, the general AJD rate published by the regional government is 1.4% for notarial documents subject to this tax. In practice, the combination of VAT plus AJD means the tax bill on new build needs detailed calculation from the very first financial review.

3. Notary and Land Registry

On top of taxes come the formalisation costs. The most common are:

• The public deed of sale.
• Registration at the Land Registry.
• Certified or simple copies, if needed.

The exact cost depends on the price, the number of pages, the type of transaction and whether a mortgage is involved. Individually they’re not usually the biggest item, but together they form part of the real closing cost.

4. Costs if you buy with a mortgage

When financing is involved, other possible items appear:

• Valuation.
• Fees or costs tied to the loan, depending on the bank’s offer.
• Linked or recommended insurance.
• Additional administration in coordinating completion.

Not every mortgage has the same fee structure, so it’s worth comparing offers not just by interest rate, but by total cost.

5. Other costs many buyers forget

Real transactions also involve items not always considered at the outset:

• Legal or tax advisory fees.
• Sworn translations or powers of attorney.
• Setting up or transferring utilities.
• Furniture, small renovations or fit-out work.
• Home insurance.
• Community fees, IBI and waste collection tax once you’re the owner.

Individually these items may not seem decisive, but together they can significantly change the final budget.

6. How to build a sensible calculation before buying

A practical way to organise your budget is to separate:

1. Purchase price.
2. Taxes.
3. Formalisation costs.
4. Financing costs.
5. Set-up costs.
6. Annual running costs.

With this structure you can compare two properties more intelligently. Sometimes a cheaper property ends up costing more once you factor in taxes, renovation or upkeep.

7. Extra care if you’re buying as a non-resident

International buyers should also review:

• How the source of funds will be justified.
• What tax impact holding the property will have.
• Whether the purchase will be personal, joint, or through a company.
• What will happen in future in the case of inheritance, gifting or sale.

Buying well isn’t just about closing a deal — it’s about buying in a way that’s coherent with your wider assets and medium-term plans.

Common mistakes

• Calculating only the listing price.
• Not distinguishing between new build and resale.
• Not requesting a full, realistic cost scenario.
• Signing a deposit contract without reviewing the tax impact.
• Not planning for the annual cost of owning the property.

Conclusion

Taxes and real costs when buying a property on the Costa Blanca can vary a lot depending on the type of asset, the payment method and the buyer’s profile. That’s why it’s worth doing a complete, realistic calculation before reserving.

At SAGA we help our clients work out the real numbers from the very start, so every decision fits their budget, their purchase goal and their overall financial planning.

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Need personalised guidance for your situation?
For more than 60 years, SAGA has guided investors and private buyers through property decisions on the Costa Blanca. Get in touch with our team and we’ll help you work through the tax, legal or financial questions before you take the next step.